3/7/2023 0 Comments Fake receiptsMeanwhile in the US expenses make up 21% of fraud in SMEs, with the median amount lost totally $31,000. WHAT’S THE RISK FOR BUSINESSES?Įxpense fraud currently costs UK businesses over £2 Billion a year. In these circumstances, financial controllers and revenue services have to go on faith, which leaves the system open to abuse. The only evidence is receipt or invoice that records the cash payment. In a cash-based system, there is no paper trail that can be checked no bank transaction to match with the proof of purchase. Changes in tax systems such as the UK’s Making Tax Digital are tentative steps towards greater efficiency, accountability and clarity, but they fall short when faced with analogue systems such as cash payments, used by millions of UK SMEs. We’re also proud to have remarkable practitioners such as Dawn Brolin using Receipt Bank to teach other firms how to detect and foil fraud.īut the BBC report is an example where technology is yet to catch up with real-world systems. We’ve covered stories before where technology such as Receipt Bank has revealed big fraud cases in Australia. The opportunity of business fraud is nothing new. Of course, these were all marked as cash payments so there was no easy way to track the payment trail. A reporter went undercover with various rogue traders and was offered £10,000 worth of completely legitimate purchase invoices for a mere £800. WHAT’S THE PROBLEM?Īccounting rarely makes it into the mainstream news, give or take a Carillion collapse, but a new BBC investigation suggests that there may also be serious issues at the smaller end of the scale.īusiness owners looking to avoid tax can purchase huge volumes of legitimate-looking purchase invoices to claim as expenses. ![]() But new receipt management solutions can not only close the loophole, but transform the whole bookkeeping process. ![]() While an illegal market for something as mundane as receipts might be surprising, it’s a logical extension of a cash-based expense system. They’re all available on the black market, according to a recent BBC report. What do exotic pets, human organs and receipts have in common?
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