How do I reduce expense fraud?
No-one wants to think that employees are taking part in expense fraud and yet this can occur even in organisations which believe their finance departments are in control of company spending.
Keep a close eye on expenses
Good expense management practice can drive serious savings, improving the bottom line while removing the temptation for employees to take advantage of a liberal spending regime.
Using a prepaid company card solution, such as Soldo, means that the management of employees’ expenditure is automated and far easier to analyse in head office. Our web console facility ensures that data is made available in real time.
Our intuitive web console means that it is possible to see the costs incurred by each employee and cost centre. Finance teams can determine who is spending and what they are purchasing.
This timely provision of detailed expense information, together with sophisticated expense reporting means that any opportunity for expense fraud is limited.
Replace the company credit cards
Traditionally, the business credit card has been reserved for senior managers. Their disadvantage is that there is no real-time tracking of expenditure and very often no limits on spending. Our cards alleviate both of those issues.
Firstly, they can be personalised for any employee who needs to use them, with benefits for staff members and the business alike.
Employees who may have been expected to pay upfront for company costs will no longer have to wait to be reimbursed.
Requiring employees to wait 30 days or more to recoup outgoings is terrible for morale. With our prepaid business card they are never put in that position.
From the firm’s perspective, spending limits are set and controlled for each card, in addition to acceptable expenditure types and locations. Should any potentially fraudulent activity occur, a card can be frozen by the finance team with immediate effect.
These controls benefit both parties in the sense that the company has a budget, but so too does the employee, and this eradicates any opportunity for potential overspend and the need for pre-approval on spending.
A little overspend on a budgeted expense account may be something finance departments are prone to overlook, but this can soon add up. The temptation may be there, however, for staff used to company accounts to squeeze a little extra from reimbursement.
Checking all submissions is time-consuming, and management will sometimes ask themselves whether it is cost effective to spend time reviewing every item on an expenses form.
Once again, Soldo’s ability to eradicate paper claims is going to save money by specifying how much employees can spend. All businesses should also have a detailed employee expense policy, preventing any confusion as to what and where they can use company funds.
Keeping track of cash and employee outgoings involved in transfers is a nightmare for finance departments in larger companies and even more of a problem for smaller enterprises.
Our prepaid cards offer flexibility regarding their limits and funds can be transferred to individuals free of charge ensuring that employees are never out of pocket for legitimate costs.
It is estimated that SMEs alone lose £8.72bn annually due to inefficient cost management while finance departments spend many hours per week managing this expenditure.
Such wastage can be alleviated by introducing our prepaid business card, web console and mobile app to manage these outgoings.
Accurate recording is a company-wide obligation, and the implementation of Soldo’s prepaid card can provide an efficient system in which all parties are fully aware of their rights and responsibilities.
In addition, our solutions will dramatically reduce the administrative overhead associated with expense management.
Find out more
For further information, please contact our friendly team for additional information and advice on expense management.