Managing the expense reports of the employees of your company in one country can be complex in itself. But if your business has international operations in several countries, each with different languages and currencies, suddenly, the work is multiplied.
If you’re trying to get a grip on managing international expense reporting for your company, here are three things to keep in mind.
- Mind the VAT. IVA, MOMS, TVA, GST: Whatever you name it, value-added tax (VAT) is a reality of doing business overseas. And if your expense reports don’t provide consideration for VAT, your business may end up paying significant costs that could have potentially been reclaimed.
- Stay compliant. Whether it’s Sarbanes-Oxley in the U.S. or the U.K. Finance Act, there are important compliance requirements to keep in mind when managing international expenses. Having clear, detailed reports that outline exactly what was spent where make compliance simple and life much easier in the event of an audit.
- Watch for fraud. Did you know that expense report fraud accounts for 15 percent of total fraud? Add an overseas employee with little oversight into the mix, and it’s easy to see the potential. Protect against the various types of fraud by requiring original documentation, setting expense limits and conducting companywide audits.