Business expenses are a sensitive topic in companies and at the same time carry a huge risk of abuse. What is their real cause and how can you better control the budget? First find the enemy, then eliminate it effectively. Here is how to do it once and for all.
Identify the enemy
Who most often wastes company money? The statistical “fraudster” is a man over 40, working in the company for at least 3 years, holding at least a managerial position—meaning he has already gained the company’s trust.
How long does it take to detect fraud? Usually as long as 2 years. Very often misconduct is discovered only after the employee has already left the company.
However, it must be remembered that opportunity makes the thief. What increases the risk of not only accidental mistakes but also costly abuse in business expenses? It is the lack of proper procedures, scattered information, too many people involved in the process, and lack of control tools.
If employees submit requests on paper forms, and data is manually entered into spreadsheets and compiled into reports; if data is stored in multiple places (local drives, Google Docs, external disks); if multiple people process the same data; if there is a long delay between data collection and processing; or if several different tools are used that require manual data transfer—then the risk of abuse increases significantly.
Uncontrolled expenses occur wherever there is an opportunity. No one likes to feel guilty, but without a clear policy on managing company funds, there is also no sense of responsibility. Abuse is also encouraged by pressure—for example, pressure from managers to achieve overly ambitious targets, which can lead employees to unethical practices (such as creating fake orders).
Now you know who your enemy is? If your processes are leaky, do not be surprised that abuse occurs.
Do not use half-measures
More than half of companies in Poland experience abuse. The main source of uncontrolled costs is business travel. Only 55% of companies have a formal travel expense policy (Amadeus). Even in companies that do have rules, up to 50% of employees do not follow them.
Delayed payments, incorrect reimbursements, misuse of company cards for private purposes, or inefficient transport choices during business trips are just a few examples of risks companies face.
However, procedures alone are not enough if you still use paper forms, manual settlements, and long approval chains. If you want employees to follow expense policies, make it easy for them. The simpler the process, the more likely it is that submissions will be timely and correct, without months of waiting for reimbursement.
Action: elimination
How to achieve this? Since the root cause is manual processes, chaos, paperwork, and lack of control, provide a tool that eliminates these factors.
Replace manual handling with a simple application on the Qalcwise platform. It is so simple that filling out an online form takes less time than completing a paper one. A manager receives an automatic notification and can approve or reject with one click.
Allow employees to book hotels and rental cars through Qalcwise integrated with external services (e.g. Booking.com), with cost limits defined.
During the trip, employees can report expenses in real time—simply by taking a photo of a receipt or invoice with their smartphone and submitting it for approval.
After approval, data is automatically booked without manual processing. The system automatically calculates per diems, allowances, mileage rates, and currency exchange rates.
With just a few clicks you can generate reports, obtain approval, and create payment orders. This ensures employees are reimbursed immediately.
TEM (Travel Expenses Management)
The Qalcwise TEM application not only speeds up and simplifies expense reporting, but also ensures compliance with company policies.
You can embed any rules, set limits, assign budgets, and define user permissions. At any time, you can monitor budget usage and control costs in real time without waiting for month-end reports.
Additionally, detailed cost analysis helps you negotiate better terms with suppliers.
Automation of manual processes is the most effective way to eliminate errors and fraud related to business expenses. It is available immediately and works instantly.
Qalcwise applications for travel and expense management (TEM) can be tested today. This is how you win against fraud.