Employee expenses are a major cause of concern for nearly 80% of SMEs and accountants for contractors, according to a new survey.
Concur, the online expenses management business, also found that 27% are concerned that employees claim for things they are not entitled to. A quarter of employers believe staff might be spending too much and 31% think some expenses are not necessary but they do not have the time to check.
On average, small and medium sized enterprises spend 13 working days every year managing expenses. This takes up more time than investigating new markets or thinking about their firm’s future.
Furthermore, the research discovered that 20% of employees spend up to £270 per year but do not claim it back. Lawrence Gold, the presenter of the BBC programme Bank of Mum & Dad, says there appears to be three main reasons for this. Firstly, they thought it was too much hassle; secondly, they felt too embarrassed; and finally, they felt guilty.
It seems strange that we switch utility providers in order to save between £200 and £300 a year, but do nothing when spending our own money for the benefit of our employer, Gold commented. So maybe laziness should be added to the list as well.
The research also discovered that nearly 5% of workers spend about £600 every year on work expenditure.
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Image: Starlight by Chris Halderman
