The majority of small businesses are failing to manage staff expenses properly and have no system in place to keep track of what’s being claimed, a new survey has found.
The survey, conducted by American Express, found that the majority of workers have never had an expense claim queried and just 25% of companies with less than 20 employees have a formal expense policy in place.
More worryingly, however, was the finding that almost two-thirds of workers in small and medium-sized businesses are able to claim business expenses without a receipt.
Commenting on the report, Brendan Walsh, senior vice president at American Express Commerical Card, said: “It is important that companies understand the value of implementing a formal expense management programme.
“By monitoring and analysing employee spending, businesses can piece together a complete picture of company expenditure and therefore begin to negotiate better deals with suppliers, as well as stamp out any unauthorised spending.”
Although most employees profess to treating company money the same, or even more carefully than their own, the report has warned employers that in reality this is not the case.
The report found that 60% of employees would class themselves as ‘sensible’ when it comes to spending company money, yet 63% of those confessed that they would be more likely to splash out on a £40 taxi ride if the company was paying.
However, employers will be more relieved to hear that 82% of workers believe falsifying expense claims is unacceptable and only 14% admitted to having done so in the past.
© Crimson Business Ltd. 2007
