Running a business inherently involves incurring expenses. However, unexpected issues like exaggerated expense claims and non-compliance with expense policies pose significant threats. Expense fraud is a persistent challenge that businesses must address proactively.
Key Challenges Faced by Business Leaders:
Understanding Expense Fraud: Expense fraud isn’t just about deliberate deceit; it also includes errors and mistakes due to lack of knowledge. Both malicious intent and inadvertent mistakes can impact a company’s financial health.
Outdated Finance Processes: A substantial number of companies still rely on manual checks to prevent expense fraud. In fact, 24% of companies admit their expense processes are not digitized at all. This reliance on manual methods leads finance and travel teams to spend more than two days a week combating expense fraud. The manual audit process involves laboriously matching receipts for date, amount, VAT, and expense type.
Lack of Policy Engagement: Only 35% of employees believe their company’s travel and expense policies are fair and well-fitted. Alarmingly, 48% of employees think it’s acceptable to over-expense or disregard company policies at least once a year. Reasons for this attitude range from feeling undervalued or underpaid to perceiving the policy as unfair.
Ineffective Prevention Measures: A mere 21% of finance and travel leaders have implemented fraud awareness and prevention training. When companies lack resources to tackle expense fraud or prioritize other initiatives, the risk of fraud increases.
Solutions for Tackling Expense Fraud –
Creating a Robust Policy and Reinforcing Guidelines:
– Clear Policies: Develop a comprehensive, clear policy that enforces accountability and highlights consequences for non-compliance. Regularly share this guide company-wide to remind employees of proper claim submission practices.
– Manager Education: Train managers on the importance of these policies. Ensure they have proper audit processes and can address any concerns with individual employees to foster positive expense claim habits.
Utilizing Advanced Technology:
– Leveraging AI: Embrace the technology revolution by integrating AI into expense management. Tools like Air Retailer‘s Intelligent Audit solution streamline manual processes.
– Managing Change: The introduction of new technologies often brings uncertainty. Manage this change by being transparent with employees, ensuring clear policies, and addressing any concerns.
Air Retailer: Your Solution for Expense Management –
Effectively tackling expense fraud requires a combination of robust policies, employee education, and cutting-edge technology. Air Retailer offers a cloud-based expense management solution that automates and enhances expense management processes. With Air Retailer, businesses can track expenses accurately, ensuring leaders have real-time visibility to make critical financial decisions. Optimize your financial management and prevent expense fraud with Air Retailer. Ensure your business is well-protected against financial threats and positioned for sustainable growth.
