Business expense fraud is a considerable issue across the organization. The impact of expense fraud goes far beyond the financial loss. So, let us not have your organization be the next victim of travel and expense fraud. This whitepaper outlines how organizations can reduce and eliminate the risk of expense fraud.
Global Travel and Expense Policy
The first step to minimize expense fraud is to outline a clear policy for business travel expenses. The policy should consider the needs of specific departments. In fact, creating a one-size-fits-all policy with varying roles and requirements can be difficult. While some rules work best for executive level, other rules will certainly not work for your VP. Therefore, ensure your organization will support varying policies for different team members.
Automate Compliance Rules
Ensuring your employees abide by the rules is very important in an organization. Organizations following manual expense tracking process will find it difficult to track which expenses are adhering to the policy and which are not. Enforcing compliance eliminates the need to manually check policies before approving and eliminates conflicts by blocking out-of-policy expenses. Obviously, this ensures out-of-policy expenses will not get submitted without providing an explanation of the coverage.
Corporate Card Program
Corporate credit cards offer companies numerous benefits such as cash back on purchases. Employing corporate cards can help fight against expense fraud by allowing you to match expenses submitted for reimbursement by employees. A major benefit of the corporate card is that employees will be able to know that purchases on the cards can be known to the employers so it becomes easy to reconcile the claims.
Integrated Travel Booking Solution
Travel booking solutions allow organizations to centralize airline and hotel bookings through single vendor and payment process. Organizations can mandate that travel is booked centrally and travel requests should be sent for approval. Business rules can be enforced within the integrated travel solution so that employees will be able to book flights and hotels only from your preferred vendors. This would make sure you will not miss out on corporate discounts and the reconciliation process can be streamlined.
Here you go for Preventing Business Expense Fraud – Part 2