Given the vast amounts of money that companies are losing every year due to fraudulent expense claims, they must leverage the latest technology to identify fake expense entries in the reimbursement claims made by employees.
To give you a picture of the gravity of the situation, here are just a few of the types of fraud that takes place.
- Claiming expenses that never took place. For instance, traveling by public transport and billing for taxis.
- Inflating the amount spent.
- Claims made for personal expenses.
- Overspending. For example, using first-class travel rather than the economy class that the company agreed to pay for.
How can you prevent this?
An automated expense management solution can help any organization to be systematic in the expense reimbursement process. Automation of the entire process helps in maintaining all records with enhanced transparency. It also increases the convenience of the employees as they can upload their bills, get approval, and receive reimbursements all within the confines of the company’s spending policies.
Here are a few of the other steps that can be taken.
The approver must ensure that the claim adheres to the corporate policies before approving them. Multi-layer approval ensures enhanced monitoring and control. Manually maintaining such a process becomes almost impossible but with an expense management solution, it happens in just a few clicks. Automation helps in sending quick emails and notifications to approver and employees related to expense claims.
Tracking and monitoring:
Every expense of an employee should have a unique expense code to keep track of. Expense management solutions can help in providing insight into expenses that is specific to employee, department, category, and period. Any duplication of expenses can be easily identified using an automated expense management solution. Through analytics, expenses made on the same day, month, purpose can be reviewed and cross-checked.
Lead your employees:
According to the ACFE report, senior officials account for nearly 24% of all cases of employee reimbursement fraud at an organization. The senior officials must set an example of having an honest approach in their reimbursement process that can indeed influence the employees to follow the lead.
With ExpenseOut, you can easily enforce corporate policy, curb overspending, and make your employees behave responsibly with company money without micromanaging them. Reach out to us for a customized solution for all your expense claim issues.