The problem: Due to a major last-minute client presentation, employees need to quickly purchase additional color paper and staples. There’s no time to go through the normal paperwork with Purchasing so the employee bends the rules and drives to the local Walmart or Staples, pays for the supplies with a payment card and then expenses it. Ultimately, this costs the company money because it loses the benefit of corporate discounting associated with volume purchases, not to mention the fact that it throws off corporate financial analysis of how much is truly being spent for supplies.
