Expense Management Strategies to Maximize ROI in 2016
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Transcript of Expense Management Strategies to Maximize ROI in 2016
Sponsor
• Recognize emerging trends in business travel and expense management for 2015
• Evaluate expense report processing costs and return on investment
• List the ways automation can simplify data management and administrative reporting
• Recognize strategies to streamline the expense reporting process and improve productivity
Learning Objectives
After attending this event you will be able to:
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Expense Management Strategies to Maximize ROI in 2016
Robert Neveu, President & Co-founder, Certify
Mark Philley, Corporate Payroll Manager, Superior Energy Services
Sara Faulk Fontenot, General Ledger Analyst, Superior Energy
Services
Today’s Speakers
Robert Neveu
President and Co-founder
Certify
Sara Faulk Fontenot
General Ledger Analyst
Superior Energy Services
Mark Philley
Corporate Payroll Manager
Superior Energy Services
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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 on
G2 Crowd, with a 4.8 out of 5 star rating
• Over 25 million expense transactions in 2014
• Processing over $10+ billion/year in expense reports
About Certify
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Spending Trends:
Why Expense Management Matters
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T&E Spending is Substantial
$1.25tU.S. business travel spending 2015
(estimate: GBTA)
$310bglobal business travel
spending 2015
International Domestic
$2,502 $1,002
Average base cost per business
trip for air, hotel and car rental
(Travel Leaders Corporate)
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25% of all U.S. companies spend $1 million or
more on annual T&E expenses (PayStream Advisors)
of total annual
budget for T&E(Aberdeen Group)
10-12%
Business Investment in T&E
10
T&E Spending by Company Size
$50k – $5mm
Mid-Size Company101 – 999 employees
> $5,000,000
Large EnterpriseMore than 1,000 employees
< $50,000
Small BusinessLess than 100 employees
Reference: Certify Annual Expense Management Outlook 2015
Average annual T&E spend
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MEALS
AIRFARE
LODGINGGAS
MISC.
CELL PHONE
CAR RENTAL
GROCERIES
SUPPLIES
TAXI
TOLLS
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%
Reference: Certify’s SpendSmart™ Report, Q4 2014
How the Expense Budget is Spent
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Polling Question
Expense Management ROI:
What It Is, How to Get It
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• Hard costs for paper, printing and postage
• Hours to create, review and approve reports
• Time required for reconciliation and reimbursement
• Storage fees to archive expense reports
• Lost productivity
Hidden Costs of a Manual System
Reducing processing costs is the #1 T&E improvement for 48% of all best-in-class companies
(Aberdeen Group)
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$6.85fully automated
$17.31 semi-automated
$26.63 manual
Expense Report Processing Costs
Average cost to process a single
expense report by system type:
of companies do not
track their expense
report processing costs80%
Reference: PayStream Advisors
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T&E Cost Savings Strategies Used by
Best-in-Class Companies
Aberdeen Group: Travel and Expense Management: Spend and Save
88%
58%
87%
77%
68%
Expense reports auditedregularly
Automatic linkagebetween expense mgt.and back-end systems
Online travel bookingsystem
Commercial cardsystem/program
End-to-end expense mgt.solution
52%automate key components of expense management
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Expense Management Automation
• Cost savings: reduce costs in time and materials required to process expense reports
• Process efficiency: eliminate data entry and errors, improve administrative reporting
• Increased productivity: mobile and cloud-based accessibility simplify expense management
• Policy compliance: integrate company T&E policies and spending controls
Why do best-in-class companies turn to automation?
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Polling Question
Methods for Managing T&E Reporting
2013 2014 2015 2016
Cloud/Web-Based 36% 44% 37% 35%
ExcelSpreadsheets 35% 29% 32% 37%
HomegrownSolution 7% 5% 7% 5%
PenandPaper 10% 4% 4% 8%
ERP 12% 18% 19% 15%
Reference: Certify’s Annual Travel & Expense Management Survey 2013-2016
The mix of expense management systems remains consistent
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ROI Requires an Initial Investment
Are you planning to switch or currently in the process of evaluating vendors for a new web-based system?
62% of all companies planning to make the switch will do so in the next 12 months
Reference: Certify’s Annual Travel & Expense Management Survey 2016
37%Small Business
46%Midsized
Companies
53%Enterprise
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Benefits of Investing in Automation
Actual benefits of using a web-based system
surpass expectation in every category
Reference: Certify’s Annual Travel & Expense Management Survey 2016
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How ROI is Achieved
What are the ways you’ve achieved ROI on your
new expense management system?
58%53%
33%
26%22% 22%
Improvedefficiency/expensereporting process
Reduction inprocessing costs (less
paper, postage,storage etc.)
Mobile accessibility Increased employeeproductivity
Elimination ofpayment for duplicate
expenses
Reduction inoverhead/staffing
requirements
Reference: Certify’s Annual Travel & Expense Management Survey 2016
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Average Time to ROI is Improving
2015 Expense Trends Survey
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Average Time to ROI is Improving
2015 Expense Trends Survey
2016 Expense Trends Survey
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Automation at Work:
Superior Energy Services
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About Superior Energy Services
• Leading provider of oilfield services, technology and expertise to global oil and gas producers
• Headquartered in Houston, TX, with offices in the United Kingdom and Brazil
• Operating 40 subsidiaries; 10,000 employees worldwide; $4 billion annual revenue
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Expense Management Challenges
• Company growth and acquisitions was the driving factor to simplify expense management processes
• Evaluated several vendors to help with transition from paper-based reporting process to a web-based solution
• Needed to replace multiple legacy systems with a single solution for all employees, at any location
• Small team of accounts payable employees to support the organization; must automate key expense functions
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Benefits with T&E Automation
• Streamlined the entire expense report process including integrated policy controls, AP software and corporate credit cards
• Mobile app and mobile manager approvals add greatest value to the company’s large number of remote and jobsite-based employees
• Reduced expense report processing times by 50%, plus faster employee reimbursement integrated with company payroll
• Provides a single, easy-to-use platform accessible to all employees; 1,000 monthly users in 8 subsidiaries now on the system
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Maximizing ROI:
Automated Reporting Features
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Top T&E Strategies to Achieve ROI
STRATEGIES OUTCOMES
MobileAccessibilityReducecosts,simplifythereportingprocess,andimproveproductivityforemployeesandmanagers
SystemsIntegrationStreamlinedataentry,reduceerrorsandimprove
efficienciesinbackendprocessingfunctions
AutomatedControlsAutomatepolicyenforcement,eliminatepayment
ofduplicateexpensesandcontrolspending
ReportingVisibilityLeveragereal-timeaccesstodetailedspending
metricsandkeyworkflowanalytics
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Simplify the Reporting Process
Top mobile features for greater efficiency:
• Optical character recognition/auto-fill: snap photos of receipts, automatically parse data into reports
• Mobile report creation: build expense reports from the road as receipts are captured and saved
• Remote approvals: managers can review and approve reports from any location to reduce delays
Mobile OCR and auto-fill
Mobile lowers processing costs by 65%, improves reimbursement rate 40% (Aberdeen Group)
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Automate Policy and Spending Controls
• Make policy automatic: apply built-in spending caps, reporting requirements (meal attendees, receipts, etc.), vendor preferences, and more for better compliance
• Eliminate duplicate receipts/expenses: automatic system reviews identify duplicate expenses, flag out-of-policy expenses, reduce fraud, and save money
• Seamless travel booking: integrated travel booking ensures best rates and efficient expense reporting, plus pre-trip approvals to maximize spending control
• Manage expense reporting on time: set a schedule to automatically build reports, notify employees and managers, and submit expenses (specific to Certify)
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A Quick Note About Fraud
• Expense fraud accounted for nearly 14% of all occupational fraud in
2014 with a median loss of more than $30,000
• Businesses with fewer than 100 employees have a 28% higher median
fraud loss than those 100+
• 2016 Annual Trends: 85% of organizations have a written T&E policy;
73% use a manual review process to monitor compliance
Association of Certified Fraud Examiners
Oversight Systems
82%
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Integrations: the Key to Efficiency
Expense
• Accounting Systems: automate key accounting functions and streamline workflow
• Corporate Credit Cards: direct control over employee spending, faster reconciliation
• Corporate Systems: reduce data entry and errors across multiple redundant systems
• ACH Reimbursement: direct deposit for more efficient reimbursement, simplified accounting
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You Can’t Measure What You Can’t See
Actionable insights into key spending and process metrics:
• Spending: analyze company spend by expense category, department, individual employee, monthly reimbursements, etc.
• Compliance: review processed and in-progress reports, policy violations, identify risk and offenders, and improve company compliance rates
• Workflow: monitor people and process; documented path of approvals ensure expenses are reviewed/approved according to guidelines
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Thank You
Q & A
• Thanks to our speakers
• Join us at www.proformative.com to continue the
conversation with your peers in our community
• If you want an introduction to today’s speakers
or sponsor, tell us on the survey!
A Few Final Items
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Polling Question