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Money leaks in business expense reporting

Expense spreadsheet timer 1 min.
Carol Bernard
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The effective management of expense and mileage claim spreadsheets can lead to an improvement in the efficiency of expense management in general, a financial and time saving for employees and the company, together with a significant source of identifying opportunities for savings. However, if it is not done properly, it can be a source of ‘money leaks’, which, unless we are careful, can lead to significant financial losses for the company.

Money_leaks_in_business_expense_reporting.jpgOne of the key points is compliance with expense policies. Revising expense reports, to check that they comply with these policies, is a basic step. It enables companies to prevent errors, abuse and even fraud. However, there is another extremely important aspect that is often not taken into consideration: preparing the trip.

When there are a lot of employees on the move, it can be difficult for the Travel Manager to keep track of which expenses or amounts are authorized for each person. It may be the case, for instance, that an employee asks to stay at a hotel that exceeds the price limit that they are assigned for accommodation. Therefore, it is important that the company’s rules can be applied during the preparation phase, so that employees can comply with the policies right from the planning stage.

Documentation can also be a significant source of waste. On the one side, there is the cost associated with paper-based management: send the paper originals of the receipts to head office, filing, etc. These expenses can easily be saved by digitizing. In addition, another problem arises from the loss or damage of this documentation. Without the receipts, the company cannot verify the expenses.

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