Click the image to register for participation. Sales staff falsifying expense reports—strictly speaking, this is a form of occupational crime and fraud. This situation exists in almost every company and is a common topic. So how can we effectively curb this problem? First, let's analyze the reasons why sales staff falsify and embezzle expenses: As mentioned earlier, falsifying expenses is a criminal act, and the consequences of being caught are predictable. Sales staff are well aware of this. So what specific reasons drive them to take risks and dip their hands into the company's expense funds?
The normal income of sales staff is unreasonable, leading them to find ways to balance their income through expenses.
The finance department lacks effective auditing capabilities, thus losing its deterrent effect on expense fraud.
Sales staff believe they contribute significantly to the company or have good personal relationships with superiors, so they feel secure and dare to falsify expenses without restraint.
Sales staff underestimate the severity of the consequences if fraud is discovered, or the punishment for those who commit fraud is not severe enough.
In my opinion, companies should elevate the issue of falsified expenses to the level of a crime. Only then can they take it seriously from the root. It should not be treated superficially, like treating the head when the head hurts and the foot when the foot hurts. Within the company, it must be emphasized that falsifying and embezzling company expenses is a criminal act. This is not just a company determination; it will be directly handed over to public security and procuratorial organs for handling. At the same time, financial supervision departments that fail to perform their oversight duties effectively will also bear responsibility.
If such a management foundation is established, the impact on employees will be entirely different. Because any crime has costs, including the cost of committing the crime and the risk cost. If the cost is too high, the vast majority of people will abandon the crime.
So, how can we increase the cost of crime for sales staff? Consider the following measures:
- Increase the difficulty of falsifying receipts: For example, require photos in reimbursement claims, and place a newspaper of the day in the photographed scene. Add phone numbers to dining, shopping, and accommodation invoices. Additionally, financial personnel can proactively teach sales staff how to identify fake receipts, ostensibly to warn them, but actually to fundamentally curb their use of fake receipts.
- Leverage conflicts among employees by intentionally arranging for employees with conflicts to audit each other.
- Require the finance department to be innovative in financial review, continuously developing new review methods to maintain scrutiny of sales staff's documents.
- Amplify the handling of discovered issues: In addition to thorough investigation and recovery of losses, consider handing them over to public security and procuratorial organs. Public media coverage will deal a fatal blow to their future career development. Only this can create a deterrent effect on sales staff.
- For sales staff with a fluke mentality, such as those who believe they contribute significantly or have good relationships with superiors, the company must make its stance clear: merits are merits, faults are faults, and merits cannot cover faults. Moreover, the authority for financial review and punishment does not lie with their immediate superiors.
Author: Pan Wenfu Born from a private business owner background, managed a family-owned distribution company for many years, during which he also served as a business manager and trainer in several manufacturing companies. His research focuses on internal management of small and medium-sized private enterprises, with main topics including personnel management, cost control, management backend setup, and the integration of demobilized military personnel into private enterprises. He has continuously broken down over 400 topics related to internal management of private enterprises and keeps updating his material collection and solutions.