Audit of expense claims: a must for accounting and finance departments

In a context where compliance and transparency are priorities, the audit of expense claims has become much more than an administrative formality. It has become a strategic asset for accounting and finance departments, as part of a corporate social responsibility (CSR) approach focused on governance and transparency. By guaranteeing rigorous controls and financial integrity, the audit of expense reports not only enhances financial security, but also the credibility of the company in the eyes of its stakeholders. This article explores the impact of expense claim auditing and its tangible benefits, particularly through automation via solutions such as Vertical Expense.

I. What is an expense report audit ?

Expense auditing is a process of verifying business expenses incurred by employees to ensure compliance with company policies and applicable regulations. By analysing the relevance, compliance and legitimacy of each expense, the audit detects irregularities and reinforces financial traceability. Far from being limited to a simple verification, it becomes an essential lever for securing company finances and improving resource management.

II. Types of audit to improve compliance

To reinforce compliance, the audit of expense reports includes several essential types of checks

1. Expense compliance control : checking that expenses comply with internal policies, such as travel expense ceilings or eligible categories.
2. Validation of supporting documents : Examination of receipts and supporting documents for each item of expenditure to ensure that they are accurate and correspond to the amounts declared.
3. Duplicate detection : Identification of charges submitted more than once to avoid errors and limit the risk of fraud.
4. Analysis of unusual expenses : Tracking of expenses incurred outside the usual norms in order to identify those that require special attention.
5. Checking tax compliance : checking tax aspects (VAT, deductibility) to avoid any non-compliance during an external audit.

These checks provide a guarantee of transparency and accuracy, ensuring that expenditure is justified and complies with regulations.

III. Systems in place to manage an audit and ensure better compliance

To optimise the auditing of expense claims, many companies are adopting automated solutions that simplify and strengthen the control process :

• Expense claim management software : Tools such as Vertical Expense can automate expense control, with functions such as real-time verification, detection of abnormal expenses and validation of receipts, ensuring fast and efficient compliance.
• Customised dashboards and reports : These functions give finance managers a precise overview of expenditure, enabling them to detect discrepancies and alert them to any budget overruns.
• Archiving and traceability : Automated audit software ensures structured archiving of each expense claim and receipt, making it easier to access information during internal or external audits.

These systems make it easier to manage audits and ensure ongoing compliance, while reducing the workload on administrative teams.

IV. The importance of auditing expense reports for the company

The audit of expense claims is a crucial process for ensuring rigorous financial management and reinforcing compliance. Here are the main practical benefits for your company :

1. Reduced financial risk : By detecting errors, duplication and fraudulent expenditure, the audit protects the company’s finances and prevents potential losses.
2. Time savings for accounting teams : thanks to automation, teams can concentrate on higher value-added tasks, such as strategic analysis, rather than manual verification of expenses.
3. Cost optimisation : With detailed reports and early detection of budget variances, the audit enables spending policies to be adjusted, budgets to be better controlled and significant savings to be made.
4. Strengthening governance and transparency : By rigorously tracking expenses, the audit of expense reports contributes to responsible corporate governance, strengthening the confidence of employees and external partners.
5. Tax compliance and peace of mind : The audit also ensures that all expenditure complies with tax obligations, reducing the risk of penalties and tax adjustments.

Expense auditing, supported by automated tools such as Vertical Expense, is much more than a verification process. It is a strategic practice that strengthens compliance, reduces risk and ensures transparency of spending. For companies, investing in an expense audit system is a key lever for financial security and good governance, contributing to more efficient and responsible management of resources.