Most times expense fraud happens in mileage claims as we simply rely on employees to provide estimates of distances traveled. Usually, employees who submit expense claims will round-up travel costs. Exaggerated mileage claims are one of the main causes of expense fraud with around 40% of employees submitting. The need to control business travel costs for the growing workforce is a major challenge faced by companies. As organization scale up, a multitude of small expenses creates a huge drain on businesses.
Many employees exaggerate distances by small amounts between five to ten miles. As most businesses process expenses on a monthly basis, it causes fraudulent expenses to become regular. Lack of policy enforcement is one of the main reasons for mileage fraud to happen. The inability to control costs of mileage is due to the outdated processes followed by expense management.
The emergence of expense report solutions that are able to track and record the exact route and distance will help avoid submitting fraudulent mileage claims. SutiExpense is enabled with GPS capabilities which allow employees to track the route and distance where an employee travels and provide accurate mileage. Route tracking allows you to distinguish between legitimate business expenses and other distances that are for personal purposes. This way employers will have the data required to approve or reject any illegitimate expense claims.
Automated solutions allow mileage policy reminders and checks for claimants through notifications. This would ensure that employees are aware of the compliance parameters. Automated checks can be done which trigger an alert when mileage claim breaches any pre-defined limits set by the finance department. This way suspicious claim can be identified and investigated instantly.
Cloud-based solutions make it easy for businesses to manage the mileage expenses of 5 through thousand employees. The solution provides the flexibility to handle the demands of a growing business. With the right tools, today’s businesses can fight against mileage fraud.