Top Expense Management Problems & One Solution
As a business owner, cash flow is always top of mind. You set rules and processes in place to ensure that every dime that comes in and out is accounted for – yet somehow cash still slips through the cracks. A significant amount of this leakage is due to intentional or unintentional employee theft, and it adds up to $50 billion per year for businesses in the US.
Like any business owner, you’re going to do all you can to mitigate the risk of cash leakage, but traditional methods just won’t cut it anymore. Here’s a list of risk management practices you’re using and why they’re not working:
Setting specific and clear rules
Laying down the law when it comes to the spending policy is an absolute must when it comes to avoiding employee theft. This way, there are no misunderstandings when it comes to company money and how it should be used.
But, as they say, rules are meant to be broken, and your employees may get into the habit of buying a cup of coffee here or a meal there, leaving you with some significant gaps in your books at the end of the month.
Requiring receipts for all purchases
Receipts seem like a foolproof method of ensuring purchasing honesty amongst your employees. The problem is that receipts are sometimes hard to keep track of, especially if your employees are out in the field all day. It’s easy to lose a tiny slip of paper during the day-to-day activities on the job.
Only giving petty cash to trusted employees
If you have longtime employees that you trust, you should be in the safe zone, right? Unfortunately, human beings are fallible, and it’s not uncommon for employees to accidentally keep the change after a purchase.
Conducting regular audits is an excellent way to sniff out employee theft. Surprise audits are particularly effective if you have an employee intentionally altering the books. However, this is a reactive, not a proactive approach. Even if you do catch the culprit, the damage is already done and you could be thousands of dollars in the hole by then.
Whether consciously or unconsciously, many businesses have simply accepted this as the cost of doing business. However, with new prepaid and expense management software, that is no longer the case.
The Bento solution
Bento is a proactive solution to employee theft that catches theft before it happens. Products like Bento allow business owners to hand out cash in the form of a prepaid Visa debit card that they can set spend controls on. Business owners can set restrictions on spend amount, and where and when transactions can be made by each employee, ensuring that your money always stays in your hands.