How Many Employees Are Adding Hidden ‘Extras’ in Their Expense Claims?
Many employees exaggerate their monthly expenses, without feeling that they are stealing company’s money. Most actually feel that they work hard enough and are entitled to the extra pennies that they put on their expenses form.
It seems the attitude has changed with many employees believing that ‘everyone does it’ and that it is easy to get away with.
In the current economic climate where there is increasing financial pressure it is more likely that employees will inflate areas of expenses that they believe they can get away with.
A few miles added to mileage claims, soon adds up when each employee submits their expense claims.
Companies really could make considerable savings if they treated the issue more seriously. For small businesses it can be a crippling expense and one that could be easily avoided.
The most common types of employee expense fraud include:
• Extra miles added to journeys
This is the biggest problem and easiest to do as the cost pengeluaran hk of petrol rises and Managers and Accounts Departments have limited amount of time to check. Also, employees that car share to venues/locations will each add the miles to their expenses form.
• Food and restaurant meals
As the cost of food rises, more receipts for food are included at a higher price.
• Adding tips to restaurant bills when tips were not included
When employees add tips to their expense claims that they haven’t given.
• Claims for entertainment that are excessive and not within policy
For example leisure, alcohol and sports tickets submitted in the expenses.
• Higher class travel that is not necessary or within the company policy
When first class tickets are bought, instead of economy.
Unfortunately fraudulent expense claims are more likely to increase as a business grows as there are more employee expenses to check.
The easiest way to reduce the likely-hood of fraudulent claims is to have a clear expenses policy, which is communicated to each member of staff.