Why are electronic receipts not preferred for employee expense reimbursements?

The preference against electronic receipts for employee expense reimbursements is rooted in their potential for manipulation. Electronic receipts are often easier to alter or forge than paper receipts because digital files can be edited using various software tools. This susceptibility to modification makes it challenging for organizations to ensure the authenticity of the submitted expenses.

Paper receipts, on the other hand, present a physical document that cannot be as easily altered without leaving evidence of tampering. This makes them a more reliable form of documentation for expense reimbursements, as they require an original signature or stamp that would be difficult to replicate perfectly.

While electronic receipts offer advantages such as easier storage and management or being less prone to physical damage, their vulnerability to forgery poses significant risks in the context of fraud detection and prevention, which is crucial for maintaining financial integrity within an organization.