Empower Your Small Manufacturing Business: Reduce Expense Fraud Using PeopleHCM 

The Association of Certified Fraud Examiners’ 2022 Report to the Nations, which analyzed over 2,000 cases worldwide, noted that expense reimbursement frauds lasted for an average of 18 months before detection, making it one of the longest-lasting forms of fraud.

Expense fraud is a growing concern in the manufacturing industry, where accurate financial management is crucial for success. Common issues include falsified expense reports and the misuse of company funds, which can lead to significant financial losses and undermine business operations. For small manufacturing businesses, the impact of such fraudulent activities can be particularly damaging. Therefore, adopting effective expense management solutions that prevent these risks is essential.

Importance of Fraud Prevention

Preventing fraud and ensuring operational efficiency is essential for maintaining financial integrity in the manufacturing industry. Fraudulent activities can lead to significant financial losses and weaken a business' overall stability. Even minor frauds can wreak substantial havoc on small manufacturing businesses, where resources are often limited.

One specific area we cover here is expense fraud – critical for operational efficiency, statutory filings, and regulatory compliance.

Role of HCM Software

Human Capital Management (HCM) software is pivotal in combating expense fraud, mainly when tailored solutions like PeopleHCM are implemented. PeopleHCM offers comprehensive tools to reduce the risk of expense fraud. With features that streamline expense tracking and approval processes,

PeopleHCM ensures accurate record-keeping and enhances accountability across the organization. It helps small manufacturing businesses protect their resources and sustain growth.

Automated Expense Reporting

Reducing Manual Errors 

Automated expense reporting through HCM software is essential for reducing human errors and minimizing the risk of fraud in manufacturing companies. Manual entry can lead to mistakes or intentional falsification, but with PeopleHCM’s One-Click Receipt Scanning, these issues are significantly reduced. This feature allows users to photograph their receipts, automatically extracting and populating details into expense reports.

By eliminating manual data entry, PeopleHCM ensures accurate tracking, enhances financial integrity, and reduces the potential for expense fraud

 Real-Time Expense Tracking 

Immediate Fraud Detection 

Real-time expense tracking is crucial for quickly identifying and addressing suspicious activities within an organization.  

Automated Compliance Checks 

Enforcing Expense Policies 

Automated compliance checks are crucial for manufacturing companies to maintain financial discipline and adhere to strict expense policies. PeopleHCM’s expense management system is designed to address the unique needs of the manufacturing sector by enforcing compliance through advanced features. The system automatically flags expenses that exceed predefined limits or violate specific company policies, such as unauthorized spending categories or over-budget claims. This real-time monitoring ensures that all manufacturing-related expenses comply with established guidelines. It helps to minimize policy breaches and maintain financial control in a high-stakes industry.

Using PeopleHCM, businesses can effectively enforce their expense policies, enhance financial control, and ensure accuracy in their expense management processes.   

Detailed Audit Trails 

Comprehensive Tracking 

Maintaining clear and detailed audit trails for manufacturing companies is essential for transparency and accuracy in expense management. PeopleHCM’s expense management software simplifies this process with several key features tailored to the manufacturing industry:

• Detailed Record-Keeping: Audit trails capture every expense transaction, allowing manufacturing companies to review and track all financial activities thoroughly. They ensure that all expenditures are documented and accounted for, supporting accurate financial reporting and decision-making.  
• Extensive Tracking: PeopleHCM automatically tracks and validates corporate card statements, monitors unsubmitted expenses, and logs all transactions. It gives manufacturing firms a comprehensive view of their spending, ensuring all expenses are accounted for and aligned with budgetary constraints.  
• Simplified Investigations: Detailed audit trails make investigating suspicious transactions more manageable. PeopleHCM's system     helps manufacturing companies quickly identify and address potential fraud or compliance issues. It safeguards against financial discrepancies and maintains adherence to company policies.  

Quick Reimbursement and Multiple Currency Support 

• Quick Reimbursement: In the fast-paced manufacturing environment, timely reimbursement is essential to keep operations running smoothly. PeopleHCM’s Quick Reimbursement feature significantly speeds up the reimbursement process, which is crucial for manufacturing companies that must manage expenses efficiently. This feature accelerates approvals, reduces wait times, and ensures employees are reimbursed quickly, supporting a more agile manufacturing operation.

• Supports Multiple Currencies: Manufacturing companies often operate globally, dealing with suppliers and partners across different regions. PeopleHCM supports multiple currencies, making it easy to manage international expenses accurately. Users can create expense claims in various currencies that are automatically converted to the base location currency. This feature is vital for manufacturing companies with global operations, ensuring clear and precise financial reporting, regardless of where expenses occur.

PeopleHCM's expense management software simplifies global business processes, ensuring smooth financial operations across different regions.

Conclusion 

In today's manufacturing landscape, robust expense management isn't just a necessity—it's a strategic advantage. With solutions like PeopleHCM, small and large manufacturers can safeguard their finances, enhance operational efficiency, and confidently drive their business forward. Staying ahead of fraud and ensuring seamless financial processes have never been more accessible.