Regular audits are a business necessity
Businesses need to complete objective, real-time audits in order to catch expense irregularities before they become more serious issues, according to Concur, the business travel and expense management software provider.
Concur says expense irregularities can lead to fraud, regulatory requirements, under-claimed tax and compliance penalties from the Australian Tax Office (ATO).
Matt Goss, Concur Australia and New Zealand managing director, says, “Research shows 7% of all expenses are submitted without a receipt of any kind, 6% do not have a valid GST receipt, an average of 4% of receipts are duplicates and 23% of expenses are non-compliant. These issues can create high costs and headaches for businesses."
He says, “With the new financial year underway I encourage businesses to thoroughly check expenses, not only to ensure the business complies with regulations, but also to check employees’ aren’t spending too much or buying non-work related items.”
Concur advises three key points when completing a business audit:
- Give auditors real-time access to spend data
- Combine receipt validation with compliance checks
- Match receipts to expense claim line items - look at the date, amount, expense type, vendor name, payment method and expense qualification to ensure all information is present, correct and compliant
Goss says, “Stop mistakes and fraud as they happen instead of wasting time recovering your losses after they have occurred. Business self-audits are important to flag irregularities."
“Expense management technology can help with business audits by providing visibility into what funds are coming in and out of the business.
“Using technology to complete a thorough audit can drive further bottom line savings by ensuring all compliant tax amounts are claimed. It can also provide peace of mind by protecting your business from tax over-claim and potential compliance penalties,” he says.