Your employees are the backbone of your business, and making sure that they don’t have to shoulder the burden of travel expenses is important for keeping them happy and working at their best. Using an expense report is a common step in the business process, and any company that has on the go employees will likely rely on those reports on a regular basis. But it’s important that you take it seriously and use a quality program to help manage reports like the tools available at www.ExpensePoint.com. There are some very real risks associated with failure to manage your expense report database, and understanding more about those dangers is important.
The first risk is that of misreported information. This could be as a result of dishonesty or of simple mistakes on the part of your employees, but either way it’s not a good thing at all. It’s also something that is being taken much more seriously throughout business and even politics. Just last year, Senator Patrick Brazeau and Mac Harb – an ex-senator – were charged with fraud as a result of misreporting information in their expense reports. This led to reimbursement that they weren’t actually owed, and also triggered major fines and penalties. You can see more info on the case at the BBC site.
That’s only a single example, and in business something as simple as a single meal that isn’t eligible for your company’s expense policy may seem minor – but what if two or three of your employees claim a meal on their expense report that they shouldn’t on each trip? Those costs add up, and can drag down your business’ bottom line.
Compliance is the other major risk, and can occur as a result of the misreported information, or as a result of things like lost receipts, mistakes in your calculations and reports each quarter, and more. Noncompliance can literally shut down a business or lead to serious fines and fees, and it is vital that you don’t let that happen to your business. Again, tools like ExpensePoint are designed to help with managing expense report information and can help you avoid this risk.
It’s important that you take every aspect of your company seriously – one seemingly minor thing can have a huge impact on your finances and your future. Expense reporting is an aspect that can’t be ignored, and that can’t be managed improperly without some serious risks.