Expense fraud is costing companies billions. Implementing business policies and expense management tools is the only solution that can help businesses counterbalance the increased costs. Most organizations take steps to curb financial losses, but employee-initiated expenses are often overlooked.
Avoiding expense fraud starts with clear policies, and ensuring your employees have understood makes all the difference. Lack of communicating expense policies within organizations is a common issue. Studies found that around 60% of employees hadn’t seen or read company expense policies.
The travel and expense policies set limits for allowance expenses such as meals, and the amounts set may vary with respect to the salary levels and destinations. If the policy is in place, make sure employees read it and acclimate themselves to the new policies outlined on a continuous basis. Online expense reporting solutions are great tools for policy compliance, as the systems enforce policies at every step of the reimbursement process.
Automated expense reporting systems can ensure company staff are familiar with the expense policy terms and makes it easy to figure out non-complaint expenses. Solutions such as SutiExpense can set up spending limits across all expense categories, allowing users can see what the limits are and alerts employees to when it is time to claim their expenses back.
Expense software allows employees to import the data automatically, so there would be no scope for expense fraud. With the SutiExpense software solution, employees’ expense reports will never get declined. Automating expense policies will make employees submit expense claims that comply with the company’s corporate policies. The software automatically flags or triggers a notification when employees submit out-of-policy claims. However, detecting fraud is not possible with sensible expense policies. Strict authorization controls can limit false expense claims. If employees know that someone is checking claims, they will be less likely to attempt to deceive the system.
Automate the Processes
Manual expense management process can allow expense fraud to go unchecked, especially when the headcount and expense claims volume grow. Automated solutions can help locate expense fraud in many ways. For instance, the expense reporting software can integrate with a GPS system to precisely record mileage claims from the moment an employee starts traveling. This way employees don’t get the opportunity to round up mileage claims. Automated expense reporting solutions can create out-of-policy alerts for employees, finance departments, and built-in rules within the system to remind employees about expense policies.
Automated expense solutions enhance visibility and validation for employees, approvers, and account departments. With this improved visibility, employees are less likely to push personal expenses as business expense claims.