Posted by Jessica Kirk // 10.25.17
Below are the top five items that make auditing expense reports debilitating, and how you can conquer these challenges. Report audit does not need to be bombarded with problem.
- Guide fitting receipts to expense reports. Organizations have other information that has to be reviewed and investment accounts, that auditors frequently confine their verifications to expenditures claimed to receipts that are fitting. Most audit period is spent only verifying receipt amounts. For those who handle paper receipts that are difficult to read or supply an incomplete record of 21, it’s even worse. Sifting through expense reports and receipts to catch errors takes a whole lot of time. This practice is so time consuming that organizations resort to thresholds or sampling to determine that which T&E reports must be audited.
What to do about that? Streamline how employees enter expenditures so auditors do not need to see yet another paper receipt. Ditch the clocks and find an investment management solution like Concur or Certify to automate your expenditure report submission. Then apply an Artificial Intelligence (AI) alternative to automatically analyze 100% of trades in a in depth risk-based audit.
- Price policies that read like a Shakespeare sonnet. Confusion is caused by too investment policies. Some organizations do not have specified rules. Others possess policies that unintentionally encourage travelers to move rogue. The errors will appear again and again, when employees don’t know what is compliant with company policy. Repeated mistakes outcome not merely in wasted money but wasted auditors period.
What to do about that? Open lines of communication with stakeholders at different sections on your T&E policies. Speak to fund, operations, and HR. Most importantly, speak with your employees who travel frequently to find preferences and their pain factors. Engaging the proper people will tell you where to focus and get them to get into your policy.
- Forth and back with employees over errors. At a manual audit process, when auditors place expense reports that need correction, the resultant follow-up with employees could be a wreck. The auditor must reach out to whoever filed their manager, and the report, to communicate what is wrong and how to fix it. This frequently is handled through manual and email tracking of the resolution.
What to do about that? The very best AI tools won’t only find the transaction exceptions in expense reports, they’ll find patterns of behavior that have to be corrected and the origin of the issue. When the system finds a high-risk action, it automatically assigns it provides an instance research workflow and documents steps taken to resolve cases. For showing compliance, this enables greater communication with employees and documentation.
- End-of-month expense report madness. At the conclusion of each month, because investment reports are due employees and auditors need to run for the hills. Employees busily hunt down receipts from business trips, staff lunches, taxi rides and spend hours filling the data into spreadsheets and organizing them. Auditors obtain an avalanche of expense reports to confirm and be buried in the process comparing receipts. Other work stacks up. It’s a vicious cycle. These still have a great deal of time and are prone to error, although some companies elect to outsource the process to an audit company.
What to do about that? Take the burden from the expense report process by automating end-to-end. Utilize investment management applications to create expense reports and an expense report audit alternative to discover misuse and fraud. Many companies realize that automating more of the method makes employees happier since they can process and repay expenses. Many companies can move to reimbursements since they’re not held hostage.
- Scaling is impossible. A manual expense report audit process can be hard to scale as the company develops. From calculating 500 expense reports to 1,000 expense reports, when you leap, you have to include headcount for audit. This can’t be done.
What to do about that? Again, automation keeps the day. Without adding headcount since your workforce develops and the number of expense reports develops cost report auditing climbs. Auditors are free to focus on correcting issues like fraud and repeat offenders rather than of verifying receipts in a haphazard sample.
Lots of the things that make auditing expense reports awful can be overcome using automation. We ought to speak in the event you feel the pain of expense report audits.