Receipt auditing: ensure compliance with AI technology

Auditing. It’s a necessity, though the task itself often makes business owners and accountants across the world groan. But what if we said you could take auditing off your plate altogether?

From expense auditing to tracking and reporting on all your receipts, AI technology has flipped the auditing world on its head. Now you can get your audits done faster, with fewer mistakes. Here at Expensify, we’re all about making your life easier through technology.

What is a receipt audit?

A receipt audit is the process of comparing expense receipts to the data you have on hand from your company to avoid any duplication and ensure accuracy and completeness.

Audits not only keep your company’s finances in working order, but they also ensure you’re in compliance with the IRS come tax season. So bottom line: they’re pretty important!

What are the three main types of audits?

The three main types of audits are internal, external, and IRS audits. These types differentiate who is conducting the audit and, sometimes, what data is being collected and analyzed.

Internal audits are conducted by the business owner or an employee to better understand company spend, expenses, and more. External audits often look at the same data but are conducted by a third party with no ties to the business being audited. IRS audits are completed by the government and focus mainly on income, expense compliance, and taxes.

Expensify’s AI-powered auditing technology

Expensify’s auditing services automatically detect duplicate receipts, ensure correct exchange rates, and confirm the accuracy of each transaction using AI technology. This means you can get the most accurate and in-depth insights into your company’s finances — all without growing your expense compliance team.

Features of Expensify’s receipt and expense auditing service

Whether you want to conduct a receipt, expense, or invoice audit internally, Expensify’s AI has your back. Features of this technology include:

Common questions about audits

The finance world can be complicated. To help demystify the process, we’ve answered the most burning questions about auditing below.

What is the purpose of an audit?

The purpose of an audit is to gain a better understanding of internal finances and ensure total compliance with company and government guidelines. 

By taking a deep dive into what your business spends money on, your cash flow, and operating expenses, business owners can make smarter decisions to help propel their business forward (and avoid any fees or penalties from the IRS due to reporting errors).

Does the IRS verify receipts during an audit?

Yes, the IRS will verify your receipts during an audit to confirm your expenses match what was submitted on your taxes. That’s why keeping a detailed record of your finances is so important! If you work with Expensify, we’ll keep track of all that for you, providing electronic records of all your financial moves from the last year.

Learn more about IRS audits and what other records they might request on the IRS website.

Save money and limit errors with AI-powered auditing

Expensify’s software makes it easy to gain insight into your company’s spend and ensure total compliance. Get started today.