Behind the Receipts: A Bookkeeper’s Guide to Spotting, Preventing, and Surviving Expense Fraud

Let’s start with a little uncomfortable truth: 
Expense fraud doesn’t always come wrapped in villainy. 
It doesn’t always look like someone walking out the door with a company laptop. Sometimes, it’s more subtle—like a duplicate Uber charge slid into a report or a meal that happened to include a client… and a cousin. 

As a bookkeeper, I’ve seen both ends of this: businesses bled dry by quiet abuse, and employees wrongly accused because no one knew how to read the numbers. Let’s break this down before it breaks your bottom line. 

Step One: Know Where It Hides 

Expense fraud doesn’t wear a nametag. It hides in the ordinary. Most commonly, you’ll see it in: 

Travel and entertainment expenses (“Yes, that sushi dinner in Miami was absolutely business-related.”) 

Receipts for cash purchases (Pro tip: Cash is easier to fake. No digital trail.) 

Mileage claims (Unless someone’s car doubles as a delivery truck, 600 miles for two meetings is suspicious.) 

Duplicated or altered receipts (A PDF and a printer can be a dangerous combo.) 

Fraud isn’t just spotted on the spreadsheet—it’s in the patterns. Multiple similar amounts. Rounded figures. Submissions that always come late but never come light. And my personal favorite: expenses just under the approval threshold. 

Step Two: Build a Fraud-Resistant Fortress 

You don’t need a forensic accountant. You need structure. Here’s how to protect your business: 

1. Set a Clear Policy (Then Actually Enforce It) 
If your team doesn’t know what’s allowed and what’s not, guess what—they’ll make their own rules. Define expense categories, approval limits, timelines, and what “business use” actually means. 

2. Automate the Process 
Use tools like Expensify, Zoho Expense, or QuickBooks Online to track submissions. Automation flags duplicates and suspicious patterns before they reach you. 

3. Require Receipts—Always 
Even for small amounts. No exceptions. Especially for cash. No receipt? No reimbursement. 

4. Multiple Eyes, No Surprises 
One person submits, another approves, a third does spot checks. No one—not even you—should have full control over the process from start to finish. 

Who Gets Hit the Hardest? 

Small businesses. Always. Why? 

Because smaller teams mean more trust, fewer controls, and often—less time to scrutinize every $32 expense report from that “conference” in Vegas. 

Ironically, the fraud often comes from the people you’d least expect. Not the new intern, but the ten-year employee who “would never do that.” Familiarity breeds blind spots. 

What If You’re Accused? 

If you’re the one in the spotlight, stay calm. Not every red flag is a crime. But here’s what to do: 

Get documentation. Every receipt. Every email. Build your timeline. 

Don’t get defensive—get factual. 

Cooperate. If it’s a misunderstanding, transparency clears it up fast. 

Ask for a formal review, especially if there’s no defined process for disputes. 

Expense fraud isn’t just a financial issue—it’s a culture issue. If your team feels unclear, unseen, or unchecked, things slip. Slowly at first. Then fast. 

But with the right process, a pinch of technology, and the willingness to check what feels “too small to matter,” you can keep your books clean—and your business even cleaner. 

And if something doesn’t look right, ask your bookkeeper. We see things. 

This information should never be taken as advice. Please talk to your bookkeeping and tax business professionals to discuss your individual situation. By the way, we’d love to partner with you on that! Give us a call or schedule your no-obligation consultation today, click here to book a call.