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Your Drivers May Be Overreporting Their Mileage By 29%. Here’s What You Need To Know.

triplog company mileage reimbursement software

For over a decade, TripLog has helped companies save thousands of dollars and countless hours by streamlining their reimbursement process and cutting down on operational costs. The true costs of manual mileage tracking and reimbursing can often be surprising to companies, especially those not yet adopting modern mileage tracking methods.

According to our internal tracking data, we have discovered that many drivers were inflating their mileage by as much as 30%, potentially costing businesses thousands upon thousands of dollars per year in incorrect and fraudulent reimbursements. Let’s discuss what this means and how companies can use TripLog to protect their financial interests.

triplog ditch manual mileage reimbursement for the best mileage tracker app

The Numbers

Between January 2018 and January 2021, we found that roughly 2.8 million trips were overreported. Of the 52.33 million miles reported among those trips, we found that they were inflated by 27.2% for a total of 14.26 million miles.

When drivers were reporting manually (i.e. not using the app to automatically track their mileage), that number grows to 28.9%. At an average of $0.58 per mile over that period, this would account for roughly $8.2 million in incorrect and fraudulent.

For example, say a driver took a trip and manually reported that it took them 30 miles when in reality it only took 20. The TripLog app compares the route recorded by our automatic mileage tracker or a given manual entry to Google Map’s data.

If Google Maps reports that the drive actually took 20 miles, that can result in overreporting. Thanks to TripLog, those trips were immediately flagged and easily corrected, but companies still using manual reporting and processing methods are far more likely to miss such errors. 

Expense Fraud: More Common Than You Think!

According to the Global Business Travel Association, 19% of all expense reports have errors, and it takes nearly 20 minutes to correct these issues. Even if a company employs just a few drivers, these errors can quickly stack up over just one single pay period in terms of cost in incorrect reimbursements and labor.

In fact, the most common type of expense fraud is mileage reimbursement. Employees that conduct business in their own vehicles often pad their mileage amounts in order to receive additional funding from their employer.

triplog-overreported-mileage-claims

Even prior to the COVID-19 pandemic, expense reporting fraud was on the rise. According to Chrome River’s 2019 Expense Fraud Survey, an average of 5% of employees committed expense reporting fraud that year. Perhaps most important is how these expenses were being submitted.

Employees were most likely to commit expense reporting fraud when – you guessed it! – they were submitting manual or spreadsheet-tracked receipts. Over 9% of employees who submitted expenses this way have committed fraudulent actions in their expense tracking, typically inflating small expenses that were less likely to be noticed.

Switch to a Modern Solution

The true costs of manual mileage and expense tracking should shock business owners, but there are easy-to-implement solutions. For instance, TripLog has made it possible and affordable for firms to get exact mileage reports, put them all into a readable format, and save time for their accounting team, helping stop fraud in its tracks.

To learn more, schedule a complimentary demo with TripLog today, or take a look at our pricing plans. You can also create an account to start your savings journey today, or download the TripLog app on iOS or Android.

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Mileage Reimbursement Savings Calculator

Using outdated manual mileage logs can cost businesses thousands of dollars per year in lost time and incorrect reimbursements. See how much TripLog can help you save!

Number of drivers

Average miles daily per person​

Number of trips daily

Cents-per-mile

Annual mileage reimbursement costs based on the numbers you provided.

Annual Mileage Reimbursement

50 mi/day x 100 drivers x $0.54 (5 days x 50 wks)

$675,000

This is the inline help tip! You can explain to your users what this section of your web app is about.

According to research, on average employees inflate the mileage by 25% when self reported.

Estimated Reimbursement Savings

25% x Annual Mileage Reimbursement

$168,750

People on average spend 2 minutes on manually recording trips.

Manual Entry Hours

2 mins x 10 trips/day x 100 drivers (5 days x 50 wks)

8,334 hr

Taking national average $25 hourly rate.

Estimated Labor Savings

Avg. $25/hr x Manual Entry Hours

$208,334

Total Savings Per Driver

(Labor Savings + Reimbursement Savings) / Number of Drivers

$4,167