Business travel spend is projected to reach heights of $318 billion this year alone. What does that mean for your company’s travel policy? According to CGMA Magazine, expense account reimbursement fraud is the most common type of fraud; it accounts for about 14% of all asset misappropriation fraud schemes.
Why is this the most common type of fraud? According to one survey, businesses that suffer the most from expense reimbursement fraud are businesses with fewer than 100 employees, and cases range from a few dollars for non-work related meals to hundreds of thousands in a systematic scheme over several years. However, large companies can also suffer from this issue as fraud can often go unnoticed. Scenarios ranging from fake expenses, last-minute flight bookings, or even unused flight bookings, has become increasingly easier for employees to take advantage of company travel and expense policies.
With modern expense management, software applications make it difficult to produce false receipts. However, large expenses on credit cards or other consistently high charges eventually accumulate. With Apptricity Travel and Expense, the graphical workflow display enables you to track reports easily and use drag-and-drop to quickly assign expense items to reports. Additionally, Travel and Expense automatically attaches electronic, mobile, scanned and fax to image receipts to expense reports; this visibility allows managers to have the ability to implement policies for using actual receipts to document any expenses made. Therefore, with increased visibility of a travel and expense management system, managers can check and analyze spending choices. Most importantly, auditing capabilities automatically track suspect expenses as well as random samples for review which insures users’ compliance with corporate policies while increasing administrative management efficiencies.
Travel policies that are practical and easy to understand have a higher compliance rate and save more money for the company. With an easier to understand policy, the less the risk is for fraud occurrence and false reporting. Visibility and audit-ability are also increasingly important when it comes to implementing an effective and enforceable travel policy. Communication is always key; without expressing key concerns and policies to employees, the more difficult to oversee potential for fraud.
For more information, contact us at 214.596.0601 and inquire about our latest offer for Apptricity Travel and Expense out-of-the-box reporting.