Employee expenses probed after MP scandal

Date: 29th May 2009

More small businesses are scrutinising their employees' expenses following the latest parliamentary scandal.

Research by networking portal LinkedIn found that 40 per cent of companies have lost money due to bogus expense claims, with one in ten taking action due to recent media coverage.

As a result, an increasing number of managers are likely to call on the help of qualified accountancy professionals to help examine workforce expenditure.

European marketing director at LinkedIn Cristina Hoole said: "A significant proportion of UK businesses are suffering as some employees push the boundaries of what should and should not be claimed."

Considering the economic situation, Ms Hoole added, the MP expenses scandal is likely to have a "ripple effect" through the entire private sector.

Meanwhile, a study by Cattles Invoice Finance has discovered that three-quarters of organisation do not credit check new clients before doing business with them.