5 Signs Employees Indulging in Expense Report Fraudulence

Tracking business trip expenses means tracking every penny employees spend to support their activities. Most businesses trust employees on the reports they submit, but few of them have the intent to submit fraud claims. However, with expert-recommended policies, you can ensure that expense reports submitted are legitimate. The following are a few signs to look for in reimbursement requests.

Receipt Itemization

Mandate each submitted expense item should include an itemized receipt. The receipt should clearly list each item that was purchased. Red flag expense claims for which receipts are not submitted. Consider reimbursing without itemized receipts only for exceptional cases.

No Documentation

Expense tracking can be tedious, especially for frequent flyers. Make it clear that there is required documentation for each expense. Consider closely monitoring reported expenses for fraud prevention.

Fake Receipts

Fake receipts can be generated easily with the help of advanced technology. Therefore, pay close attention to the receipt numbers and look for sequential numbers. In case of any doubts, you can even contact the store to verify that the receipt is authentic.

Alter Receipts Digitally

With photo editing software, it is easy to make changes to a receipt that cannot be detected. Employees can capture receipts and make minor changes such as adjusting numbers using photo editor. One way to get rid of this type is to connect to an employee’s credit card and verify that the items match. This would require issuing corporate credit cards rather than relying on employees’ personal cards.

Redundant Expense Claims

Unless you pay attention to the expense submissions, employees can easily submit duplicate receipts within the same time period. Ensure your software identifies when an employee submits receipts multiple times. Also, employees can accidentally double-submit expense report claims, especially with someone who is submitting a large number of expense claims each month. It is better to continue monitoring employee submission closely.

In addition, making sure accounting practices are in place will not only help you prevent expense fraud but can also help identify when employees submit duplicate receipts or erroneous data. The more organized your expense reporting process is, the easier it is to deal audits.

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