All employers would like to believe that their employees are honest, reliable, and trustworthy, but unfortunately that is not always the case. Tracking employee expenses, is of the utmost importance, to weed out the few bad apples in the bunch. Not all employees take advantage of expense reports, and keeping proper records will ensure that all parties involved are protected.
3 Ways Employees Take Advantage
- Duplicate receipts are one of the most typical form of expense report fraud. After the receipt has been uploaded to the expense report software, the employee still has the physical copy of the receipt. In many instances, the receipt is then used a second time, categorized under a different name, and often slip through the cracks. Tracking employee expenses carefully, keeping accurate records, and accounting for all receipts, will enable you to understand who is taking advantage of the system, and who is not.
- Inflating the actual costs of expenses is another common occurrence of employees taking advantage of expense reports. Without proper documentation, it is easy to add a small amount, here or there, which is a slippery slope when dealing with expense reports. A trip with a small budget allotted, can turn into a major disaster, for even the most profitable company. However, by simply tracking employee expenses, these occurrences can be avoided.
- Claiming non-business related expenses is another way in which employees can take advantage of your expense report. An example of this would be the employee being allowed a certain amount of money to entertain business associates, but using that money for their own personal use. These non-business related expenses can add up in a hurry, and by taking advantage of the system, the employee has disrupted the profitability of the company.
Tracking Employee Expenses Benefits Everyone Involved
Keeping accurate records will help reduce the amount of mistakes involved, within your expense reports. The money that is saved, can be put back into the company. This benefits you, and your organization, as well as your employees. Allow your company to flourish with a trustworthy team, and reduce employees taking advantage of your company.