Last time, we spoke about methods for spotting and controlling fraud in a hybrid workplace. While working remotely, we examined the full scope of expense fraud and identified the most typical types of expense fraud. In this article, you’ll learn about the many methods your accounting department may use to reduce fraud and make sure all employees stick to the set budgetary guidelines.
Preventing Wasteful Spending
Oversight found that in 2022, there was a 207% rise in the number of businesses that lied about their expenses. The dramatic change in expenditure management practises that followed the rise of remote labour is largely to blame for this expansion. This change was brought about by antiquated regulations, flaws in the expenditure reporting system, and inexperienced spenders who made mistakes in their spending but were unaware they were doing so.
There may be millions more in a company’s bottom line if management understood the financial risks involved with remote and hybrid labour. As a result of this realisation, CFOs and finance departments all over the globe are placing a greater focus than ever before on risk assessment and expense minimization.
Check how you’re currently managing expenses.
The first step in preventing fraud in the expense reporting process and recovering control of your business is to draught a policy that is clear, transparent, and brief. It is the obligation of your finance team to update policies so that they are compatible with evolving work settings, since the increase of remote and hybrid work renders pre-COVID spending guidelines archaic.
Here are a few pointers to keep in mind as you go through this process:
- Use simple, understandable language when writing your company’s expense policy.
- Name your new forms of spending what you expect to spend the most money on, such as “home office supplies” or “internet fees,” and set a budget for each.
- Communicating the many types of expenses that may be spent to your team is just as important as communicating spending limits, acceptable reimbursements, and the procedure for verifying expense reports.
- To prevent policy violations, employees need to understand what cost fraud is and the repercussions of doing it.
A well-written and succinct policy will answer any questions that may come up from employees. This will free up time for your finance team to focus on more pressing matters than investigating accidental rule violations and fielding inquiries from concerned parties regarding the expense reporting and reimbursement processes.
Focus on ensuring uptake and conformity.
Having formulated and implemented the perfect policy, the following step is to make it accessible to all employees. Seminars, including policy compliance training into the new hire orientation process, emailing the policy to employees, posting it on the intranet, and even creating a policy-specific app are all potential means of reaching this purpose. Keep in mind that when management and executive teams adhere to the same standards as other employees, it helps to build a culture of accountability and monitor compliance.
