Looking to find ways to make reconciling our corporate credit card process a little easier for staff. Since the charges are on a corp card, is there a real need to still require receipts to be uploaded (we use BOAs Works system) or can they just add notes in the comments when allocating & signing off on the charges? Receipts seem redundant since we see the charges on the card statements anyway.
Purpose of receipts when using a corporate card
Answers
The receipts will provide you with item level detail not seen on the credit card statement. Items such as in room movies, excessive tips, large alcohol purchases, etc might not be apparent on the statement itself. To make the process easier have you considered mobile
The IRS requires receipts for all meals and entertainment and lodging. There is a $75 minimum threshold though on this requirement.
So, you have to have copies of those receipts at a minimum. After that it depends on your comfort level for audit purposes. We have noted in our company that credit card statement detail is often comparable to receipts from an audit perspective and have loosened receipts requirements except in the case of meals and entertainment and lodging.
There's another reason you might want to get the receipts. If you are not getting the line item detail on your statements you might still want to require receipts. I think the following example will demonstrate what I'm talking about. The story was told to me by one of my readers and happened at his company.
When the company started getting line item details, they discovered a handful of their salespeople had been buying gift cards for themselves at office supply houses and submitting the expenses as "office supplies." It was only when they got the detail that they realized what was going on. Now hopefully, if you are requiring the receipts, your employees will be smart enough not to put gift cards on their company credit cards.
Without the receipts, some employees will put all sorts of stuff on the card and the company will never know. As for restaurant receipts, there have been reports of a handful of employees adding gift cards to a legitimate meal. I could go on, but I'm guessing you get the picture.
When we surveyed our readers at AP Now about the receipt issue, we found a growing number are requiring receipts for everything and some also asking for the detailed meal receipt. Now, requiring the receipts does not mean you have to check each one; you can spot check.
Good luck.
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