Something is deeply wrong at the heart of company finance systems
even this fails to stop the dizzying array of extra claims.
Digital War on Waste
Cloud Computing – Keeping Travel and Entertainment Budgets in Check
Sanjay Parekh, Managing Director at WebExpenses, analyses the positiveeffects of cloud-computing technologyfor keeping Travel and Entertainment budgets in check.
A series of studies paint a picture of: Embarrassing loopholes in employee expenses rules Unchecked expense claims FDs using outdated processes to wade through mountains of data Widespread fraud and digital wasteSomething is deeply wrong at the heart of company finance systems
A quarter of all employees admit to making exaggerated claims Deloitte found that widespread expenses fraud is costing UK businesses in excess of £1.3 billion a year Experts believe that this could just be the tip of the iceberg, as many companies admit to checking less than 2% of expenses claims A quarter of SMEs say they would not be confident if compelled to account for their employees expenses to HMRC
Businesses attempt to combat spiralling claims, by pre-planning employee trips on company cards; but to no avail From rounding up trips, to generous, mystery tips, unexpected out-of-pocket extras, and shock receipts, there is an extensive list of employee expenses tricks TMC, a mileage audit and fuel travel cost company, estimates drivers inflate the cost of business journeys by up to 25% All these coupled with changes to the travel sector, mean that many companies are leaking money
Opportunities to obtain hefty discounts with travel firms for bulk bookings or long-term custom, are missed as businesses fail to keep track of expenditure across the board Travel companies frequently conceal costs by unbundling deals, leaving travel bookers unaware of potential extra expenditure A significant proportion of companies still manually file data in hard copies, thereby increasing the risk of lost records When complex claims are submitted across multiple currencies FDs find it impossible to maintain the necessary paper trail to ensure compliance
Firms rely on employees to submit evidence alongside expenses claims without policy reminders, which employees are unaware of With the result 9% of expenses claims are incorrect In an environmentally-conscious age, the increasing number of fraudulent travel claims means that FDs cannot place a figure on their employee’s carbon footprint As a result companies lacking the evidence to defend themselves against dubious claims and may have to start cutting jobs instead of T&E budgets
Good news is that we know from the research and experience that this can be changed By switching from red-tape to automated expenses-management systems, the Aberdeen Group reckons companies can slash their admin costs by over 50% This has also increased compliance by up to 30%, as companies can conduct best-practice audits, and instantly reimburse employees
Cloud-based solutions are changing the way companies do expenses management – Expenses can be populated directly from corporate-credit cards to company accounts Advanced mapping is used to accurately gauge mileage and carbon footprint Now, mobile apps – Reduce processing costs by up to 50% Give employees the ability to submit claims and evidence on the move Enable companies to monitor claims in real-time from anywhere, reimburse employees instantly, conduct audits, swiftly spot emerging trends and inconsistencies and block inaccurate claims
When Spring Group trialed WebExpenses, the results were so dramatic that they rolled it out immediately globally WebExpenses now supplies in excess of 300 companies with cloud-computing expenses solutions, in over 60 countries WebExpenses cannot eradicate fraud as ultimately every technology depends upon a degree of trust in its users; but it will help you fight it It offers companies a golden opportunity to cut waste and restore probity to finances
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