Managing business expenses means tracking piles of paper receipts, shoe-boxing receipts and verifying and validating receipts. This does not have to be the same. With proper planning, corporate travel policy, and expense report software, you can curtail employee expense fraud. The following are five strategies that help you spot fraud in expense management in your organization.
Employees responsible for reimbursement should be educated about how to spot irregular patterns of employee spending and how to enquire employees about the expense claims. Educating staff about spotting the questionable items can help avoid business expense fraud.
Import Expenses from Credit Card
Importing expenses directly from employee credit card is one of the best ways for employers to fight against expense fraud. If employees are manually managing and entering the expenses into reports, the risk of human errors is high. Mandate business spending should be done through credit cards and directly import expenses into the system. Recording expenses from credit cards are not only a convenient option but can help monitor employee spending.
Spot Falsified Claims
Submitted expense reports can have false documents or blank receipts. Attached receipts could be just left-out receipts from hotels or restaurants, or might be taken from friends or family members to claim on their expense reports. However, with expense report software, you can submit reports with correct receipts and no report can be falsified.
Business expense fraud can be easily done when organizations do not need any receipts. Whether it is a cash advance or corporate card expense, it is important to have documentation on hand to help you know what, where, and why a specific expense is made. Receipts are required for each and every expense made while some organizations need receipts only for the expenses made above a certain threshold. The online expense software will make it easy for every employee to submit receipts for the expenses made. Also, this would help the accounting department to maintain a detailed documentation and reduce paper management.
Leverage Expense Management Software
Using online expense report software helps you identify common expense reporting issues and prevents employee fraud. The solution allows you to set an amount and limit claiming certain categories while asking reasons for submitting out-of-policy expense claims. Also, having an expense policy in your organization and communicating to each employee can help combat expense report fraud altogether.
Schedule a free demo today to learn how SutiExpense can help streamline your business expense reporting process.