Receipt requirements

[lisastaubin]

We have used Concur since 2013.  We have always required an itemized receipt for all expenses possible (obvious exceptions like cash tips excluded.)  Our new CEO wants us to back off from that requirement.  How does this affect your ability to detect fraud, inappropriate spend, etc., and how do you mitigate it?  

[JessicaL]

I sympathize with you, as non-itemized receipts can easily hide fraud or even accidental personal purchases.

[lisastaubin]

In fact, he wants us to go to no receipts required under $75 for credit card expenses.  So REALLY losing visibility.

[Nancyagfa]

You could require the corp card statement to be attached as it would have details for those charges under $75.  We require detailed receipts at $25 or more.

[KevinD]

@lisastaubin I'm not saying you should go this route, but the IRS requirements for receipts is cash expenses require receipts starting at $25 and corporate card transactions starting at $75. Those are what we use here at SAP Concur, but it is totally up to your company to decide. 

[Munari_alEXPert]

dear @lisastaubin 

75$ seems high, however probably the CEO would be supported by the CFO and Finance too.

I wonder if in the past your company was providing reports with analysis to the Finance department, to see the general behave and average spending of employees. Hopefully yes.

I would use those reports from the past and do a prevision on the risk the company would be exposed by removing the required receipts below 75 dollars, considering that nowadays, with the mobile application, there is no much room for NOT having the receipt available on the expenses. A few years back without smart phone/Concur app, some people where traveling a full month without getting back home, so sure there were some receipts that got lost.. but now?

Of course you can do audit afterwards, spot check some suspicious transactions, but I would guess that is not sufficient and within 6 months expenses would be increase a lot consequently...

Just imaging... first month, very few employees try little to abuse the system expensing accidentally a few beers with some friends....  no warnings? ... great... following month telling to other fellow employees they could expense beers on a Saturday night and got all fine... so other employees would think.. why not me?? and it could encourage to go  higher and higher...

It is also depends on the size of your company, if you know all your employees, it might be manageable but if you have a few thousands or more, it become very difficult. 

Last, which is very important too, is to have a super clear Travel and Expense policy that doesn't leave room for misinterpretation or has any grey area...Making clear that all expenses must be only business company related and that at any time expenses could be audited. If for any reason the Company finds, even if it was for a small amounts, an abuse or no business related expenses, employees will be reported to their manager and HR for Company's misconduct and eventually causing the termination of employee's permanent contract. 

In a way that employees are warned.