Expense reimbursement fraud can be very problematic for any business. In fact, expense reimbursement fraud makes up almost 15% of business fraud — costing companies a median annual loss of $26,000 — according to a study conducted by the Association of Certified Fraud Examiners. The study also indicates that it takes an average of two years before expense reporting fraud is identified. Duplicate billing, inflating expenses, and expensing non-work related items are only a handful of ways this type of fraud can be carried out. What makes it most difficult to identify expense reimbursement fraud is the time it takes to process receipts, as well as the volume of receipts submitted at the same time each month. Sometimes it may take several months after charges are made for employees to submit their expense sheets. This is why it is essential for any business to establish a transparent, timely, and measurable system for expense reimbursement.
Online expense management can be a great resource for companies experiencing issues with expense reimbursement fraud. Digital expense management allows for instant expense reimbursement submissions, granular reporting, and superior organization of receipts. By adopting online expense reporting for your business, you not only make the lives of your employees easier, but also save your company substantial money. It is much easier to detect fraud when receipts are processed electronically and will likely discourage fraud in the workplace.