Research suggests that most white collar crime takes place simply because the opportunity presents itself. The popular notion is that criminals are hardened people with sociological tendencies; that criminals target specific situations in order to take advantage of them. But the research says that good people get into positions of power and see that these positions can be exploited. They start small and then they get more comfortable with the idea of breaking the law. It grows and grows until it is nearly unmanageable.
This bodes poorly for businesses with employees that spend on the company’s behalf. Simply by putting a person into a position where they can spend money, you put them into a position for exploitation. A good percentage of people will take advantage of the company’s money, fudge the expense reports and spend the company’s money irresponsibly.
It can happen to anyone; even someone in public service. Take two Canadian senators. for example, by the name of Patrick Brazeau and Mac Harb. These men recently spent the Canadian Government’s money on lavish things, such as a second home and a car. One of the senators racked up a bill that totaled about $220,000, all by messing with their official expense reports.
These two men are an example, and a recent one. This is what happens when people with good intentions are put into a position where they realize that they can take advantage of a faulty system. By making their expense reports as confusing and convoluted as possible, these two senators spent nearly a half a million dollars fraudulently.
But there is something a business owner can do about this type of fraud. Set up a very rigid and strict protocol for making expense reports. Take every single employee through the step-by-step process of making expense reports the company’s way. Hold the accountable for making the expense reports the right way and take new employees through the process during training. Once a standard form is set, it is time to move onto the second step.
Automate your expense reports with quality software. Employees can hide behind paper trails and blame errors on credit card companies. But an automated expense reports system will show all reports in real time. In fact, quality software can have the owner of the business or someone in accounting approves spending in real time on a smart phone. That’s right, the software system can be tethered into an accompanying smart phone app. This means no more excuses for faulty expense reports. Everything is automated and done in real time.
Expense reports software simply closes those loopholes that people tend to climb through. It shuts off the opportunity to commit this white collar crime of spending the company’s money irresponsibly. This one, simple move can have the company reap its rewards in higher profits. The employees simply won’t have the opportunity to waste any of the company’s money.