Companies today face a wide range of struggles throughout the year, and it’s important that business leaders identify and confront those challenges head on. One that is often overlooked is that of employee fraud. However, it shouldn’t be – according to recent reports, the average company loses about 5% of their profit every year to fraud, reaching an average loss of about $150,000 annually for companies, and a global rate of more than 1 trillion dollars.
That’s a huge amount of lost revenue, and for many businesses it’s surprising to learn just how much damage their employees could be doing. That’s why it’s so important to keep looking at different ways to overcome the fraud you might be dealing with.
One option that’s often overlooked? More effective expenses reporting efforts. When your company relies on travelling employees, utilizing expenses reporting software is well worth doing. It can help you stamp out fraud in numerous ways, and since this is an area of business operations that is often easy for fraud to occur within, it deserves your attention.
Adding expenses reporting software to your business helps it in several key ways, including the following.
- By allowing employees to upload their expenses as they occur, you can directly monitor their spending while they’re on the road, reducing the chance that something is missed in the large stack of paperwork that normally occurs when they return.
- The automation process means that the computer program itself will be checking for validity of each claim. You’ll still be able to manually review each of them for approval, but that automation greatly reduces the odds that you overlook something that isn’t quite right.
- One of the biggest advantages of expenses reporting software is that it allows for the generation of data reports. You can review these reports to determine who is spending what in your company. If, for example, one employee seems to be spending far more than others on similar trips, you’ll easily see it and be able to address the situation.
Your company’s future depends on your ability to reduce costs, and that often means making sure that employee fraud isn’t taking place. When you add a quality expenses reporting program to your business it’s much easier to do just that and start seeing an improvement in your profit/loss ratio.