Travel expenses are a necessary part of doing business. However, they can also be a significant source of fraud and abuse if not managed properly. In fact, the rise in travel expenses could lead to a higher risk of business fraud. This is because travel expense invoices are often harder to manage than other types of business payments. This is because the goods or services have already been consumed before a requisition or purchase order is made.
Recent reports show that organisations are now spending more on travel expenses than before the pandemic, with the average expense report value up by 17%. Airfare and accommodation costs are also close to pre-pandemic levels, at around 22% and 14% respectively. However, with rising costs, the line item per invoice has increased. As a result, the average invoice value in 2022 was $11,259. This is a 68% increase from 2019, meaning that if businesses are defrauded, they could be losing more money than ever before.
The problem with travel expenses
One common issue that businesses face with travel expense invoices is duplicate payments. These can result in significant losses over time. While the number of flagged duplicate invoices has remained consistent at around 7-8% over the last five years, the increase in invoice values means that the risk to businesses has also increased.
The solution to managing travel expenses effectively
To manage this risk, organisations need to invest in the right technology to deal with expense invoices. By using an expense invoice solution, businesses can ensure that invoices are approved based on defined business rules, hierarchy, spend limits, and functional approval approaches. This not only helps to prevent fraud and abuse but also ensures that travel expenses are managed efficiently and effectively.
Furthermore, certain solutions also allow invoices to be GL coded within the workflow, automatically or manually, before the invoice is presented for payment. This helps businesses to keep control of where expense invoices are in the approval process and ensures that they are only paid when they should be.
Conclusion
With the rise in travel expenses, it is crucial for businesses to invest in expense invoice solutions to prevent fraud. By using the right technology, businesses can manage their expenses efficiently and effectively. Whilst also ensuring that they are not losing money due to duplicate payments or other types of fraud. So, it is time for your business to consider investing in an expense invoice solution to protect your bottom line.
About B2BE
B2BE delivers electronic supply chain solutions globally, helping organisations to better manage their supply chain processes, providing greater levels of visibility, auditability and control. We’re driven by a passion for what we do, inspired by innovation, and underpinned by a wealth of knowledge. With over 20+ years of experience, the B2BE teams operate worldwide.
For more information, visit www.b2be.com.