Thought Leadership
Around 20 % of all expense reports in companies contain errors. And around 14% of all expense receipts are questionable. For larger organizations, this quickly adds up to significant losses, because as a consequence, around 5% of all reimbursements are actually unjustified.
Checking receipts for intentionally or accidentally incorrect information therefore often means more than 350 hours of work per year for the finance departments of larger companies. Dedicated software for intelligent expense management is already speeding this up significantly. New AI tools are now able to automatically detect errors or fraud.
Expense fraud occurs in different and sometimes highly creative ways. Data shows, for example, that around 20% of all receipts contain errors that are either accidental or deliberate. The most common cases of fraud include cheating on the receipt itself, for example by overstating or adding figures. Or expenses are invoiced that never actually existed. Some employees submit receipts twice in the hope of receiving multiple reimbursements.
AI tools detect errors, fraud and violations
AI tools now offer new opportunities to prevent such cases. State-of-the-art software such as Rydoo integrates AI and smart algorithms that highlight potential fraud attempts or even errors and oversights by recognizing duplicate or manipulated receipts.
Rydoo’s new “Smart Audit” module recognizes the individual invoice items as soon as they are scanned and the AI automatically checks whether they are compatible with the company’s defined spending guidelines. This prevents many cases of compliance problems from occurring in the first place, resulting in enormous time savings. In addition to clearly defined and understandable expense guidelines, specialized software is therefore the best way to prevent expense fraud and make the entire process as convenient and smooth as possible.
(pd/Rydoo)
