Businesses can’t operate efficiently if they don’t know how their budgets are being spent. Often, however, companies don’t maintain effective policies and procedures to ensure accurate reporting of expenses. In some cases, expense padding and outright fraud are the culprits. According to the Association of Certified Fraud Examiners, the typical American company loses 5 percent of annual revenue due to fraud, and 15 percent of that is from fraudulent expense reporting.
Most expense management (EM) problems are the result of ineffective policies and procedures. Identifying where policies are deficient and addressing these problems can solve the majority of expense management issues. Following are the five most common expense management challenges, along with suggestions for how to solve them.
Your company incurs plenty of expenses, especially when you have a global workforce you send out on a regular basis..
Employees out in the field? They may be critical to your business but poor management of their expense can be.