Expense management is not just about employees preparing expense reports, gaining approvals, and getting reimbursed. There is a lot that goes in the background – analysis, forecasting, auditing, and so on. Organizations around the world are not just satisfied with the initial verification, which sometimes happens just at random. Not all expense reports are checked and not all receipts are matched. Auditing ensures that nothing untoward is happening and eliminates the various ways expense fraud or mismanagement occurs. Therefore, auditing plays an important role in expense management. Compared to manual expense management, expense software makes auditing simpler and easier.
Here are several ways you can audit your expenses using the software:
Spend per merchant
One of the ways fraud occurs is favoritism. Favoring a certain vendor over the others, even when the vendor is not following the company policy of not offering the best of services is one of the ways fraud or mismanagement occurs. Auditing the amount of spend per merchant will show if any such favoritism is taking place so that action is taken to eliminate this.
Expenses that occur on weekends or holidays is one of the indicators of expense fraud. There are some legitimate cases when expenses occur on weekends but sometimes, employees try to pass off their personal expenses as company expenses. By auditing these weekend/holiday expenses, one can know whether expenses are legitimate or not.
Expenses by amount
Another way of knowing whether overspending is taking place is to audit the expenses by amount. By pulling these reports, users can understand the spending patterns and take the necessary action to control spending.
All these audits become simple and convenient for organizations with expense report software. The software also comes with analytics to have a data-driven approach to expense management.