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Looking at expense reports, what to watch out for
However, nowadays expense report padding is something all businesses need to be on the lookout for. This occurs when employees fudge the numbers on their reports in order to be reimbursed for more money. Expense report fraud is also on the rise, and makes up 12% of all corporate fraud cases.
Knowing this, it is important for business managers to be on the lookout for expense report fraud. The following are some tips that will help you know what to watch out for when looking at expense reports. Know what the common schemes are. Double billing for expense reports is also common. For example, an employee has two receipts for a dinner and submits the duplicate a month or so after the original was submitted, banking on the fact that the employer won't notice he or she dined at the same restaurant for the exact same amount the month before. Expensing personal expenses as business ones is also fairly common. This can include smaller things like meals or transportation fare, but can be more expensive, like vacations that are written off and expensed as business reports. How to catch them - Expense report software. There are a number of good expense report software programs and services that can spot suspicious patterns, such as dining regularly at the same restaurant, identical bills, and so forth. Some of these programs can be costly, but they are well worth it. Expense report fraud is on the rise, and it can end up costing companies thousands a year; in fact, the average employee can easily expense an extra $5,000-10,000 a year of personal expenses with little effort. The above tips will help you to know what to look out for. |
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