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Top tips for eradicating false expenses claims

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8th Jul 2013
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While many employees would happily own up to stealing the odd pen, workplace theft is a serious offence which in some cases can carry a jail term, explains Webexpenses MD Sanjay Parekh.

While you’d be hard-pressed to entice too many staff to own up to stealing from their employer, a survey we conducted recently revealed that 15% of workers admit to inflating claims they make on their expenses with as many as 24% doing it because “everyone else was”.

For every employee that admits to inflating claims, there could be countless others who are unwilling to own up to their deception, and just as many if not more who submit erroneous claims simply because they may not be completely clear on their company’s expenses policy. With current estimates that employees submitting false expenses claims is costing businesses around £3.5bn a year, savvy employers need to be taking steps to ensure that they are doing all they can to eradicate bad expenses practice from their business.

Having worked in the finance arena for several years, in 2000 some of my colleagues and I saw the potential that advances in the internet could have on the way companies manage their expenses. Our mantra then was, and always has been, to keep expenses simple – by finding a software system that is easy to use and employing some basic principles, you can take control of your company’s expenses and eradicate false claims from your business.

Firstly, ensure that your expenses policy is fair and transparent. If people know the rules, they are less likely to break them. Having a policy that treats everyone the same and is clearly reinforced will ensure that all of your staff know where they stand, while at the same time eradicating the margin for error. Giving staff policy reminders while they are submitting their claims will also help prevent them bending the rules. It is also worth ensuring that everyone in your organisation who is responsible for authorising claims is adequately trained so that they know when to challenge false claims.

Another tip is to ensure that employees always include a detailed description of the reason for each claim, so that whoever is approving the expenses can quickly assess whether or not the claim is fair. For those who work remotely, popping into the office once in a blue moon, and for anyone who makes a lot of claims, this can be a real struggle. By having an expenses management system that allows staff to submit claims anytime, anywhere, and from a range of devices, you make it as easy as possible for them to include all of the details necessary for their claim to be reviewed. In particular, the ability to record and submit expenses via mobile devices like phones and tablets is something which can increase accuracy and reduce fraud – especially in organisations which have a workforce that is constantly on the move.

Finally, but perhaps most importantly, it is key to find an expenses management system that fits the needs of your business and doesn’t become a chore for staff. Nowadays, expenses management software boasts a range of impressive tools designed to make your business work better. The key is to consider which tools best fit the needs of your organisation. If you have lots of staff who work remotely then functionality allowing users to upload their expenses from multiple locations is a must. If you are a global organisation or regularly have to reimburse employees in a different currency, then it is vital that your system can accommodate this. Whatever your specific requirements, any system must be easy and efficient to implement and use.

Having a fair policy, properly trained staff and an expenses management system that is simple to use and fit for purpose are just a few simple steps towards eradicating false expenses claims from your business.

While stamping them out completely may be a pipedream, making sure everyone knows the rules and making it hard for people to bend them could save your employees time and your business money – two positive steps that no business can afford not to take.

Sanjay Parekh is the managing director of Webexpenses - a cloud-based solution that reduces the time needed to process and manage business expenses.

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