Published by Gary Roy Markham on Jan 27, 2021
The 2020 ACFE Report to the Nations was conducted to assess occupational fraud and abuse. The study found that "poor internal control contributes to fraud,” and unfortunately, there are multiple factors that contribute to poor internal controls. These include unclear expense procedures and lax reimbursement processes. Poor execution of company policies can also lead to poor internal controls.
All companies should have mechanisms in place that address fraudulent behavior and expense inefficiencies. To achieve this, companies have been implementing automation solutions that target policy compliance failures and inefficient expense regulations.
Automated expense management software can auto-extract data about expenses from a variety of file formats as well as images (e.g. of receipts). Finance departments can then take advantage of this data to better supervise expenses, or even to automate the checking of an expense against company policy using rules-based automation.
Given the current nature of business expenses, submitting accurate employee expense reports is crucial. Evaluating the accuracy of expense reports is also an important step for claiming business tax deductions.
When it comes to ensuring employee compliance, new policies can be created, or old policies can be updated. Either way, the policy should:
Expense management software such as ExpenseCore can simplify the process of ensuring expense policy compliance. Solutions of this nature can also reduce invoice and expense report processing costs. Advanced expense management solutions also offer rules-based automation of accounts payable processes.
Automating expense policy compliance using AI/ML enabled expense management software can: