Best Practices in Mobile T&E Expense Reporting

November 19, 2015

• Emerging trends in business travel and mobile expense management

• Why losing paper receipts can be the best thing to happen to your organization

• How mobile apps improve employee compliance with company T&E policy

• Ways to maximize mobility with integrated credit card, mileage and travel

• Additional tools to streamline the reporting process and improve visibility

After attending this event you will understand:

Learning objectives

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• Today’s event will be recorded and all attendees will be kept in listen-only mode to eliminate excessive background noise.

• Links to today’s presentation and the recording of this webinar will be sent out to all attendees within 24 hours of the event.

• Please ask questions on today’s topic via the “Questions” box in your GoToWebinar control panel at any time during the event. We will do our best to get to your questions during the Q&A/panel discussion at the end of the event. If we do not get to your question, we will follow up with you directly to address your question.

Webinar event notes

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Matt GruederRegional Sales Executive

Today’s speaker

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• Industry-leading with first fully automated expense system

• #2 expense report software providing travel and expense solutions since 2008

• 64 languages, 140+ currencies, clients in 80 countries

• #1 highest rated expense management software for user satisfaction on G2 Crowd

• Over 25 million expense transactions in 2014

• Processing over $10+ billion/year in expense reports

About Certify

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Trends to Watch:Business Travel and Mobile Expense Management

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• Average base cost for air, hotel and car rental per domestic business trip is $1,002; international is $2,502 (TravelPulse.com)

• T&E expenses are second only to payroll as the largest budget line item cost, accounting for 10–12% of total annual budget (J.P. Morgan)

• Nearly 65% of all U.S. companies spend $100,000 or more each year on T&E expenses (PayStream Advisors)

T&E spending has taken off

$1.25ttotal U.S. T&E spending in 2014

(GBTA)

$288bglobal business travel

spending in 2015

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$50k – $5mmMid-Size Company

101 – 999 employees

> $5,000,000Large Enterprise

More than 1,000 employees

< $50,000Small BusinessLess than 100 employees

Reference: Certify Annual Expense Management Outlook 2015

Annual T&E spend by company size

MEALS

AIRFARE

LODGINGGAS

MISC.

CELL PHONE

CAR RENTAL

GROCERIES

SUPPLIES

TAXITOLLS

SHIPPING

PARKING

1. Meals 21%

2. Airfare 16%

3. Lodging 14%

4. Gas 12%

5. Misc. 8%

6. Cell Phone 6%

7. Car Rental 5%

8. Groceries 5%

9. Supplies 5%

10.Taxi 5%

11.Tolls 2%

12.Shipping 2%

13.Parking 1%

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Expense category as percent of total spend

Reference: Certify’s SpendSmart™ Report, Q4 2014

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97%

Mobile devices make great travel companions

Reference: Expedia/Egencia Mobile Index

of business travelers carry at least one mobile device

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• Nearly 80% of business travelers used their smartphone to plan or book corporate travel in 20141

• 76% of travelers say their smartphones are "very important/critical" to daily life; 70% feel the same about their laptop1

• Companies using mobile expense apps reimburse employees at a 40% faster rate and reduce expense report processing costs by up to 65%2

• More than 45% of “best in class” companies use mobile expense apps (best in class = 89% spending under management, 91% compliance rate)2

Mobile expense trends

References: 1. Expedia/Egencia Mobile Index; 2. Aberdeen Group

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Mobile app-based ridesharing services Uber and Lyft have surpassed taxi nationally as a percent of total ground transportation receipts and expenses; more than car rental in several large U.S. metros

Mobile expense trends

of all receipts and expenses processed by Certify are submitted via Certify Mobile

References: 1. Expedia/Egencia Mobile Index; 2. Aberdeen Group

34%

22%

44%

Ridesharing Taxi Car rental

60%

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Maximum Efficiency:Top Mobile Expense Reporting Features

a) Paper-based/spreadsheetsb) ERP system (Oracle, Microsoft Dynamics, etc.)c) Web-based software (Certify, Concur, etc.)d) Not applicable

POLLING QUESTION 1

How does your organization currently manage its T&E spend?

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While most companies are using a manual system, there’s no mobile app for paper-based expense management processes

37%WEB-BASED43%

MANUAL

19%ERP

Methods for managing T&E reporting

Reference: Certify Annual Expense Management Outlook 2015

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• Common operating systems: iOS (iPhone, iPad), Android, Microsoft Phone, and Blackberry devices

• Ideally serves as extension of expense/ spend management platform with backend reporting, system integrations, etc. (vs. standalone app)

• Highest rated mobile features: optical character recognition (OCR) for receipt capture; mobile report creation and manager approvals

What makes expense reporting ‘mobile’?

Why losing paper receipts is a good thing

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OCR and auto-fill technology:• Users simply take photos of receipts; images are

saved and stored electronically forever

• Receipt/expense data is automatically parsed into required fields (amount, date, vendor, etc.)

• Saving/syncing expense data from mobile app links receipt images with expense report line items

• Eliminates manual data entry, reduces errors, and streamlines process for employees and admins

Maximize productivity on the road

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Mobile apps allow employees to start the expense report

process as receipts are captured, minimizing delays in submission

Add receipts and expense

details, review reports, and submit for manager approval

Works in offline/airport mode; data is synced when network

connection is regained

Mobile report creation:

Manage reporting anywhere, anytime

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Remote manager review/approval:• Clear workflow and documented path

of approval minimizes delays in process and reimbursement

• Managers receive automatic notification when employee reports are submitted or pending approval

• Friendly auto reminder emails and anytime on/offline access ensure timely review and approval

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Policy Matters:How Mobile Improves T&E Compliance

a) We have no formal T&E policy b) Manual review processc) Automated system that flags violationsd) Policy is not enforced

How does your organization enforce compliance with T&E policies?

POLLING QUESTION 2

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Manual policy review is inefficient and creates room

for error and fraud

78%of companies indicatethey have a T&E policy

65%of those companies are manually

reviewing for policy violations

Policy enforcement trends

22REFERENCE?

Flagged violation, notifying manager amount exceeded policy limit

• Put it in writing– Document and address potential employee questions – Clearly communicate and make accessible to all – Secure support from the company leadership

• Integrate policy controls– Hard controls: automatically decline expense exceeding X amount – Soft controls: some approvals left to manager discretion – Set spending limits by expense type or category

• Enforce compliance– Automated reporting workflow, integrated travel booking– Corporate cards, mobile applications, etc.

• Review often– Real-time reporting visibility by cost center, employee, etc.– Budget and vendor management, fraud, IRS, Sarbanes-Oxley, etc.

T&E policy essentials

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Mobile makes compliance easier

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• Always on: more convenient for business travelers means fewer delays and reporting errors

• No more lost receipts: automatically link digital receipt images and expense report line items

• Simple administration: expense reports travel with all supporting documentation in the cloud

• Increased transparency: integrations and backend reporting simplify compliance review

Mobile T&E compliance tools

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Backend and upfront controls:• Integrated policy: build company T&E policy into

the system to automate enforcement

• System alerts: users receive automatic notification to resolve out-of-policy expense items

• Duplicate receipts/expenses: system checks for duplicate expenses to reduce fraud and error

• Mobile policy check: real-time T&E policy review at the point of purchase

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Integrated Capabilities:Harnessing the Full Power of Mobile

a) Under $7 per reportb) $10−$20 per reportc) $25 or more per reportd) We do not track these costs

What is the average cost to process a single expense report at your organization?

POLLING QUESTION 3

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$36−$64 depending upon degree of automation used

(American Express)

Expense report processing costs

$6.85fully automated

$17.31 semi-automated

$26.63 manual

reason to improve T&E for 48% of best-in-class companies:

reducing processing costs1# (PayStream Advisors)

laggard organizationsbest-in-class companies

(Aberdeen Group)

$7.17 $41.12

(Aberdeen Group)

3 must-have mobile integrations

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Credit Cards Mileage Tracking Travel Booking

Save Time & Money • Reduce Hassles

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Improve control and visibility:• Direct control over T&E expenses

through policy restrictions, spending caps, reduced fees and more

• Full view into traveler data for tracking compliance and leveraging supplier negotiation

• Value-added services including fraud protection, travel-related insurance, global support, etc. Commercial card system/program in use

77%

50%

Best-in-ClassIndustry Average

Corporate credit card integration

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Mobile mileage tracking

Take the guesswork out of mileage reimbursement:• Automatically calculate mileage based on

GPS mapping for the greatest accuracy

• Eliminate “best guesses” and employee estimates that lead to overpayment

• Automatically generate electronic receipts for reimbursable mileage and link to reports

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Mileage reimbursement before and after adopting an automated system with integrated mileage

Oct. '13 - Mar '14 Oct. '14 - Mar. '15

$362,000SAVED

Certify enterprise client:• 12,000+ retail locations

• 100,000 employees

• 58,000 users creating and submitting expense reports annually

in mileage(6 months YOY)

Integrated mileage tracking

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Integrated corporate travel

Control costs before they become expenses:• Pre-trip approvals stop out-of-policy expenses

before they occur (used by 87% of best-in-class companies)

• Ensure best rates from only company-approved vendors for air, hotel and car rental

• One-tap access to trip information and itineraries offers greater convenience for business travelers

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Additional Insights:Administrative Reporting Tools

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Manual processes can’t keep pace with automation:• Lack of integration with corporate and

accounting systems limits accessibility of expense and workflow data

• Inefficient, labor-intensive administrative reporting process subject to human error, questionable accuracy

• Manual policy review is ineffective, often relies on sampling due to sheer volume—can’t link receipts!

Reporting visibility

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• 55% of all organizations’ main priority for 2014 was to enhance visibility into overall T&E spend

• Manual processes provide only 30% visibility vs. 61%+ visibility with web-based expense systems

• 74% companies using cloud/web-based systems regularly audit expense reports vs. 44% of companies on manual system

61%57%

74%

57%

30%

40%44%

29%

Web-Based Expense System Manual Expense Process

Technology improves visibility

Reference: Certify’s Annual Travel & Expense Management Survey 2015

• Documented path of approvals: Has each expense report been reviewed and approved by the right person at the appropriate time?

• Expense reports by employee: Which individual employees (or departments) are expensing the most? Are they managing the budget responsibly?

• Expense spend by category: Which areas are costing the company the most? Can we add controls, negotiate preferred rates, etc.?

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Insight into process and spending

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GL dimensions, pending reports, approval actions, processed reports, multiple input parameters, and much, much more…

Meals Attendees Displays group meals expenses with detailed and free text attendee information

Mileage By Employee Captures personal automobile usage including subtotals by employee

Expense Policy Review Shows processed and in-progress expenses with policy violations and other potential issues

Reports available with automation

Thank You

Q & A