Reduced visibility, a side-effect of remote working, has eroded what little trust business owners had with their employees when it comes to business expenses.
This is the conclusion of a new report from expense management platform DiviPay. Polling some 300 SME business owners for the report, DiviPay found that 50 percent of respondents don’t believe their employees are always honest when it comes to the expenses incurred on behalf of the business.
What’s more, almost a third (30 percent) don’t trust their employees with a corporate credit card or expense allowances.
Reduced visibility aside, another important factor is the fact that many employers caught their workers red-handed; many were buying personal, unapproved items. In some cases, they were even buying “bizarre, expensive, unnecessary, or personal purchases,” such as trips, gifts, appliances, adult toys and even furniture.
Company size also plays a role: the smaller the company, the bigger the distrust. This trend applies to the perception of employee honesty, and the number of businesses that give staff a corporate credit card or allowance.
For Daniel Kniaz, DiviPay co-founder and CEO, the findings are “concerning”. He believes businesses need a system that will provide them with adequate visibility and help them grow.
“Without this visibility and trust, business owners are likely spending hours rectifying expenses and risking profit losses,” he concluded.
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