Best Practices for Preventing Business Credit Card Abuse
Protect your company from business card abuse.
There is a tremendous amount of debate centered on how business expenses should be funded, reported, authorized and reimbursed. Business expense fraud is #4 on the list of most common fraud schemes, behind corruption, billing and noncash. It lasts on average 24 months before it is identified and account for 11% of the total cases of fraud in 100+ employees, 21% in smaller firms according to the Association of Certified Fraud Examiners. This material will show you how can you protect your company and at the same time your employees against fraud while maintaining fairness and equity.
1.0 Credits: CLE, CPE, and SHRM
Best Practices for Preventing Business Credit Card Abuse Agenda
Short History of Business Expenses and How They’ve Grown
- Started With Outside Sales People
- Executives
- Average Employees Have Business Expenses
Who Is Responsible for Business Expenses
- The Business Should Provide Employees the Tools for Work
- The Employee Shoulders That Responsibility
Payment Options
- Petty Cash
- Expense Report
- Computer Based Expense Report
– Employee Owned Credit Card(s)
– Business Owned Credit Cards(s)
– Hybrid
Normal Problems With Each Type of Payment Options
- No Receipt
- Unauthorized Purchase
- Error in Card Usage (They Took out Their Business Card, Not Their Personal (or Vice Versa)
- Lost Receipts
- Delayed Reports
Fraud
- Fake Bills
- Personal Expenses Taken as Business
- Extravagant Amounts in Violation of Norms/Policy
