Corporate travel and expense fraud is challenging for most companies, but automation can help make processes efficient and secure. Adding a few miles to expenses or getting a blank receipt from a taxi driver or claiming for travel that has not been made and more, are some of the common expense frauds.
Employees are frustrated by the expense management process; they spend money out of pocket, and claiming it back can be a slow process. Attaching a receipt to a spreadsheet, getting it approved by a manager, and processing for reimbursement may take up to a few weeks, resulting in a delayed reimbursement process.
Automation can help
Many companies may ignore expense fraud, but the amounts can add up quickly, which can have a negative impact on the bottom line. Studies reported that organizations could see a 30 percent decrease in travel spending through automation for reconciling travel claims.
The first step is to have a transparent expense policy having flights or hotels booked from a centralized system. Secondly, you can have a ghost card, where all expenditures are charged on a single card, which helps in cutting fraud but still requires reconciliation to be done.
How does the corporate card work?
The corporate card, which comes with a pre-defined limit set by the company’s policy, gives complete control over employee expenses. Corporate cards offer the highest level of granularity by setting merchant codes or time limits. With corporate cards, spending can be monitored in real-time and irregular patterns can be spotted quickly. Also, security can be improved through mobile payments. Mobile payments will become the new trend by easily integrating home and work spending together.
Mobile payments can eliminate fraud
Corporate credit cards can be linked to back-office systems and cannot be used for any other purchase besides what they are intended for. Every purchase can be seen, and all the data is available centrally so you can see what’s being spent and where. Mobile payments help employees keep track of their spending with automatic alerts and notifications. Also, employees are aware of every expenditure they make, which helps them in making wise spending decisions.
How can corporate cards benefit businesses?
Easy to manage
Corporate cards help businesses quickly tackle this issue. Corporate cards help employers to track employee spending and gain insight into tax compliance easily. This not only helps the organization process claims faster but also enables them to keep an eye on spending and identify critical areas for savings.
Data import is easy
Importing data is easy when you use a corporate card for travel transactions. All the data can be imported into an expense report solution with a click, and you don’t have to enter any transactions manually. As the data is imported directly, there is no scope for data errors. Transactional data would also help us in audit trails whenever required.
Corporate cards not only decrease paper costs but also eliminates out-of-pocket expenses saving a significant amount. A recent survey revealed that around 32% of corporate travelers had spent a significant amount on travel expenses that weren’t reimbursed yet. Also, employees don’t have to worry about paper receipts, as every transaction is recorded online. This would eliminate worries at the time of reimbursement.
Corporate cards come with security that authorizes every transaction made. Cardholders need to authorize while making payments, so you don’t have to worry about digital fraud. All the transactions made will come with verification and PINs that require you to validate the transactions. Employees or enterprises need not have to worry about expense fraud as they can easily track transactions anytime.
With so many benefits, organizations of all sizes should embrace corporate credit cards and leverage the benefits to its fullest.