About 50 % of Indian firms lack system to detect travel, expense frauds: Survey
New Delhi, Oct 15 () Around 48 % of companies in India lack something to detect travel and expense management frauds because they take action manually while 55 % of the surveyed firms don’t have methods to retrieve past expense data, monday in accordance with business expense management firm Happay report released.
“Expense fraud is probably the most overlooked forms of fraud and entails an astounding cost for companies. Still, 48 % of companies don’t have something to detect frauds as travel and expense expenses are mapped manually,” the survey report said.
The survey was conducted in India between July and September 2018 and discovered that nearly 55 % of the firms stated their inability to retrieve past expense data as an integral bottleneck in auditing and managing T&E expenses.
Over 200 companies covered in the survey included 26 % with revenue of over Rs 5,000 crore, 17 % in the number of Rs 2,500-5,000, 25 % in selection of Rs 1,000 to Rs 2,500, 31 % in selection of Rs 250-500 crore and 1 % below Rs 250 crore revenue.
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“Furthermore surprising is that 33 % of the firms don’t have GST compliant T&E solution and so are struggling to use any digital methods to perform the calculations. Despite the fact that 67 % of the ongoing companies involve some GST compliant software, they still need the employees to submit tour bills and enter vouchers manually to claim input credit,” the report said.
Even though 67 % of the ongoing companies involve some GST compliant software, they still need the employees to submit tour bills and enter vouchers manually to claim input credit, the survey found.
Around 82 % of companies covered in the survey either partially or entirely without making the complete T&E process automated despite it being the second-largest operational expense after payroll.
“About 50 % of the CFOs (chief financial officers) have understood this urgent need and taken digitisation upon themselves, to change to an automated expense management system within the next half a year,” the report said.
In the survey, 50 % CFOs stated that the percentage of misappropriation and fraud within their companies is leaner than 14.5 %, 48 % were unacquainted with this true number and 2 % firms surveyed said that’s above 14.5 % within their organisation. PRS MKJ