Having access to company expense accounts provides a professional with greater flexibility. Those who travel for work or who have to address operational issues on the fly may need the flexibility of financial access. Both company expense accounts and reimbursement policies allow individuals to quickly resolve operational challenges without incurring personal expenses.
Unfortunately, access to company expense accounts or reimbursement funds may increase the possibility of a worker eventually facing embezzlement allegations. Misusing company resources for personal purposes can result in financial scrutiny, job loss and possibly even prosecution. For example, the three types of purchases below are common expenses that may lead to embezzlement allegations.
Dining expenses
A company card or reimbursement policy can help workers who travel for their jobs cover costs on the road, such as dinner on their way to training in another state. Covering food costs when workers have to travel for their jobs is common. Employees can abuse reimbursement policies or access to expense accounts by eating at unnecessarily costly establishments or covering meal expenses for other people, such as friends, family members or dates.
Fuel costs
Professionals who drive their own vehicles for work, including repair technicians and salespeople, can potentially seek reimbursement for fuel costs or fill the gas tank using a company card. Using a company card to cover work-related fuel needs is a common practice. However, some professionals may begin using company resources to pay for fuel that they use while running personal errands or while driving during a family road trip. Such practices can lead to serious career consequences if the company uncovers a trend of excessive or inappropriate fuel purchases.
Personal purchases
There are many types of personal expenses, ranging from gifts to new electronics for personal use, that professionals might try to pass off as business-related expenses. Particularly when such purchases are frivolous and clearly unnecessary, employers may eventually raise questions about them. Even if it seems like everyone at the company takes liberties with the expense account or reimbursement policy, professionals could be vulnerable to prosecution and career consequences if they misuse an employer’s financial resources.
Reviewing company policies and personal spending habits with a skilled legal team can help those accused of white-collar crimes like embezzlement defend themselves. Professionals who respond assertively can potentially avoid criminal convictions and restitution orders that could have long-term financial consequences.
