Padding Travel Expenses is a Problem on the Rise
By Elaine N. Schoch
It’s not a shocker that people pad their travel expenses but given the current economic climate it’s a growing problem, according to a piece The New York Times did yesterday. The article included several stats I found alarming.
“While there are no hard figures on the costs of travel expense fraud to American companies and organizations, estimates range as high as billions of dollars a year. A report last year by the Inc. Business Owners Council, an organization of family business owners, found that business fraud, over all, increased by two-thirds from 2006 to 2009. The Association of Certified Fraud Examiners reported earlier this year that the typical company lost 5 percent of its annual revenue to employee fraud and abuse and 15 percent of that was tied to expense reporting fraud.”
Having worked with start-ups for the last several years and documenting everything to the penny when I traveled, padding just wasn’t an option. Nor would I for that matter. What do you think? Have you padded your business travel expenses? Taken a friend out for drinks and noted it as a client?
(Stay honest guys. You’ll be a better person for it.)