Preventative Medicine for Expense Reimbursement Fraud

Expense reimbursement fraud equals more than a whopping $100 billion annually (Association of Certified Fraud Examiners). While technology can’t cure expense malfeasance, software automation can at least curtail intentional (and unintentional) bad expense behavior. Tallie’s intelligent automation attacks the problem on several fronts, by accelerating expense submission, eliminating duplicate reimbursement, and preempting policy violations.

Tallie-Expense-Report-Workflow

To speed up the expense report workflow, Tallie starts the expense report process when the expense is incurred. From the moment a receipt image is captured on a smart phone, or a transaction is imported from a credit card, the merchant, the date and the amount data is pulled directly into Tallie’s expense processing engine

Expense Velocity

Simply put, the odds of approval for questionable or redundant expense items dramatically increase with delinquency. To nip the problem in the bud, Tallie starts the expense report process when the expense is incurred. From the moment a receipt image is captured on a smart phone, or a transaction is imported from a credit card, the merchant, the date and the amount data is pulled directly into Tallie’s expense processing engine. There’s no manual transcription, photocopying or collection of physical receipts (or scotch tape for that matter). The transaction detail is stored, categorized, and tracked automatically, and can be submitted from almost any device at any time.

Duplicate Elimination

Tallie’s duplicate reimbursement elimination features prevent the expense report double dip. Tallie automatically merges receipt images and credit card transactions imported for the same expense items. Tallie also prevents credit card transactions from being submitted more than once. Finally, proprietary algorithms allow the system to flag similar, but not identical, expenses as possible duplicates for expense submitters, approvers and accountants to review.

Policy Violation Preemption

Expense policies can’t prevent fraud, but Tallie turns company policing into prevention by automatically flagging potential infractions prior to expense submission. Tallie automatically detects company-defined violations, alerts the submitter, provides a clear definition of the rules broken, and provides the opportunity to fix or justify the infraction. The onus of policy compliance and the administrative burden is shifted from the approver to the employee. Policy ignorance is no longer a viable excuse.

As you might expect from an expense automation solution, Tallie eliminates the manual effort that slows the process, encourages delinquency, and accommodates fraudulent reporting. Yet, additionally, Tallie offers even more potent fraud prevention through intelligent automation, enhancing data integrity and administrative control by focusing on expense data from the source. Capturing expense data when expenses happen also conveniently aligns expense behaviors with an audit standard stated by IRS code, “You should record the elements of an expense or of a business use at or near the time of the expense or use and support it with sufficient documentary evidence.” (Publication 463, Cat. No. 11081L, Page 26).

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