When expense accounts get padded, it’s often because employees are given too much control over the process. Here are some tips for tightening your policy. 

Develop a clear, written expense account policy and have employees sign it. It doesn’t hurt to add some examples that illustrate common violations, such as “Dry cleaning is not a business expense,” and “Discussing your job duties over lunch with a friend does not make the meal a business expense.”

• Require employees to supply travel calendars to the accounting office so that travel dates and places can be matched with receipts.
• Set a deadline for turning in receipts.
• Accept only original receipts so that you can avoid duplication.
• Let employees know that the receipts they turn in are subject to audit.
• Apply the policy evenly, whether the perpetrator is upper management or rank and file.
• Watch for patterns, like unexplained increases in expenditures, and investigate.
• Have employees use corporate credit cards for travel expenses so you will receive the statement.
• If possible, have someone in the accounting office make the travel arrangements for other departments to ensure a consistent policy is always followed.