Expense management fraud, coupled with poor audit trails is a recipe for disaster. In order to eliminate such fraud, and be prepared for IRS audits, using Fyle's powerful expense management software, with in-built auditing capabilities can go a long way.
Real-time Audit Trails with Fyle
Fyle's audit trail chronologically records all the transactions happening in your organization's account - from expense creation to payment. They record all the communication around a particular expense report in a single repository. Every action or edit made to all the expenses and reports will be documented. Both the employees and the Finance team can view the audit trails for each expense at all times. This ensures you are compliant, transparent, and audit-ready, always.
Additionally, the audit trail ensures policy violations and corrections are recorded in real-time when they are reporting expenses.
Whenever an expense violates a company expense policy, Fyle’s system will run the check in real-time and notify the employee. This is recorded in the audit trail, including any changes the employee makes to make the expense adhere to the rules. For instance, if an employee crosses a spend limit of $200 on Food expenses for the week, he can provide a reason for the violation. This explanation is noted in the audit trails, so Finance can have complete visibility.
Fyle vs Fraud
In expense management, fraud can be a result of mischaracterized, duplicate, or fictitious expenses. With Fyle, Finance teams can quickly detect fraud with minimal manual effort.
You can set business rules around reimbursement to reduce fraudulent expenses. For example, the IRS does not allow employee expenses over $75 to be reimbursed without a receipt. With Fyle, you can create a policy that makes receipts mandatory for such expenses. The Finance team will be immediately informed if the employee violates it.
Fyle can detect duplicate or fictitious expenses automatically. If an employee tries to submit expenses that have already been reported, the system checks to see if a duplicate is found and informs them. Fyle also alerts the Finance team about the duplicate expense in real-time if the employee chooses to submit it.
Stay Compliant and Fraud-free with Fyle
Using Fyle, you can track all data and actions related to employee expense management in an audit-ready fashion. Check for fraud, duplicates, weekend or holiday expenses, or other unusual spends before it's even submitted, automatically.