What is the True Cost of Expenses Fraud?
A recent industry survey on the expense habits of 1000 people indicates that 94% of employees submit honest expense claims. An average of 6% don’t. They admit to submitting dishonest claim forms, exaggerating tips and rounding up mileage claims.
How much is this costing you? On average it's £ 1,750 per year, per claimant.
With a vast number of businesses still using traditional expense forms, whether that be on paper or Excel, the lack of control and visibility not only makes it easy for a rogue claimant, but offers a low risk of being caught. With approving managers and payroll staff buried under paperwork it’s easy for anyone to miss a questionable purchase or journey.
So, how can you protect yourself from business expense fraud?
Review your Expense Policy
Make sure that your policy is water tight with no room for confusion or dispute. Set reasonable purchase limits on different types of expense paying close attention to entertainment and subsistence claims which have been noted as some of the easiest items to inflate.
Firmly enforce submission deadlines allowing your team ample time to check each claim thoroughly for anything out of the ordinary. Stop accepting last minute returns shoved at the bottom of the pile a day before your payment run!
Automate, Report and Improve
Implementing an online expenses system such as MyExpensesOnline will allow for a streamlined claim process that takes less than half of the time of a traditional process.
You can automatically enforce spend limits, block claims with missing receipts where appropriate, flag potential duplicate claims and even check mileage claims against postcode data automatically.
With a line by line approval process and complete suite of high level reports expense visibility has never been higher. The best part? No paperwork, no ruined receipts and no stress.