Watch out for exaggerated expenses

Internet start-ups


Internet start-upsEmployers are being warned to watch out for exaggerated expense claims, as new research revealed that 13% of staff would bump up claims if they were in financial difficulty.

The survey of nearly 2,000 people, by expense management firm GlobalExpense, also found that nearly a fifth of employees admitted to exaggerating claims by adding an extra £13.81 on average.

Speaking on the findingd GlobalExpense managing director David Vine said:

“In the current climate, the temptation for staff to exaggerate expenses is huge, and in most firms, it’s easy for people to do so,”“95 per cent of people say their employer has never queried or rejected an expense claim for being too high.”

The research also found that 28 per cent of employees thought that exaggerating their expenses was acceptable if they felt their employer was not paying them a fair wage, while 29 per cent felt it was justifiable if their employer was slow to pay expenses.

“For small firms the unnecessary expense could be critical,” added Vine. “Adding around £14 to an expense claim may not sound much, but over time it could mean the difference between holding a Christmas party or not. In the current climate, when many businesses are battling with banks over their borrowings, every penny counts.”

According to Vine, to stamp out fraudulent or exaggerated claims, firms need to implement a clear expense policy and managers should be educated to monitor and check each person’s claim.

“Around 99 per cent of false claims are authorised so it’s vital that employers and managers actually keep track of what people spend,” he said. “It’s also about enforcement – if people are found to be fiddling the system, action must be taken.”

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