Taking control of employee spending business travel and expense management trends 2016

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Taking Control of Employee Spending:Business Travel and Expense Management Trends 2016

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Learning Objectives

• Budgets and benchmark spending by category for annual T&E expenses

• The top expense management pressures, pain points and areas of opportunity

• Average estimated processing costs for an individual expense report

• Systems and processes currently used to manage expense reporting

• Timelines and tactics for achieving a return on investment with a new system

Attending this event will help you understand:

3

Mark BrousseauPresident and Owner

Brousseau & Associates

Today’s Presenter

Featured Speakers

Josh CaseyData and Content Manager

Certify

5

Teri TocashAccounts Payable Manager

CBC Companies

T&E Spending andBusiness Travel Trends

U.S. Business Travel Breakdown

74%under 250 miles

from home office

48%involves a

personal vehicle

69%do not require

air travel

Global Business Travel Association 2015

U.S. Travel Association 2015

Of the 1.3 million domestic business trips made daily:

7

Base Costs Per Trip

Travel Leaders Corporate 2015

Average business trip cost for air, hotel and car rental:

INTERNATIONAL DOMESTIC

$2,502 $1,002

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Business Investment in T&E

8-12%total annual budget for T&E expenses1

1. Aberdeen Group 20152. Global Business Travel Association 2015

U.S. business travel spending in 2015 topped an estimated $310b, up 6% from 20142

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1. Meals 19%

2. Airfare 17%

3. Misc. 17%

4. Lodging 14%

5. Gas 11%

6. Cell phone 5%

7. Car rental 5%

8. Groceries 5%

9. Supplies 5%

10. Taxi 3%

11. Shipping 2%

12. Tolls 1%

13. Parking 1%

How the Expense Budget is Spent

Certify SpendSmart Report, Q4 2015

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$98.75DAILYMEAL COST

2016

1. Meals 19%

2. Airfare 17%

3. Misc. 17%

4. Lodging 14%

5. Gas 11%

6. Cell phone 5%

7. Car rental 5%

8. Groceries 5%

9. Supplies 5%

10. Taxi 3%

11. Shipping 2%

12. Tolls 1%

13. Parking 1%

How the Expense Budget is Spent


2016 Business Travel News Corporate Travel Index

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Category 2014 2015 Difference

Gas $40.41 $30.32 –24.96%

Airfare $345.21 $274.00 –20.62%

Lodging $213.90 $223.45 +4.64%

Car Rental $193.58 $186.45 –3.68%

Cell Phone $89.30 $92.24 +3.29%

Meals $25.67 $26.06 +1.52%

Parking $32.70 $32.23 –1.43%

Taxi $31.81 $31.82 +0.03%

Benchmark Spending by Category


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How Travelers Spend the Company Dime

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Most expensed and highest rated for dining:



14

Most expensed and highest rated for hotel:



15

Most expensed and highest rated for air carrier:


97%of business travelers carry at

least one mobile device

Mobile is Made for Travel

Expedia/Egencia Mobile Index 2015

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Ground Transportation Trends

Certify SpendSmart Report 2014 - 2016

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Ground Transportation Trends

+1890% ride-hailing receipts in 2 years

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Certify SpendSmart Report 2014 - 2016

T&E spending is the 2nd most difficult operating

expense to control

Forrester Research 2015

Polling Question 1

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

How does your organization currently manage T&E expense reporting?

Methods for Managing T&E Reporting

Consistent mix of expense management systems:

Certify Annual Travel & Expense Management Survey 2013-2016

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Web-based solution (Concur, IBM, etc.)Microsoft Excel/spreadsheetsPen and paperHomegrown solutionERP/accounting package (Oracle, SAP, etc.)

T&E Systems by Company Size

MANUAL SYSTEMS: 70% small businesses, 26% enterprise

22%

55%

10%

5%8%

37%

37%

9%

4%

13%

46%

16%

4%

6%

28%

SMALLBUSINESS

MID-SIZEBUSINESS ENTERPRISE

Certify Annual Travel & Expense Management Survey 2016

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Leading frustrations for T&E program administrators:

Top Expense Management Pain Points

50% employees

losing receipts

45% employee’s failureto submit reports

on time

38% time it takes to

reconcile, reviewand approve

30% reviewing for

policy violations

28% errors onthe report


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Reimburse employees faster

Improve employee compliance rates to corporate policy

Gain reporting and analytics around T&E spend

Provide system accessibly from anywhere (online, mobile)

Simplify process for employees and managers

25%

28%

32%

40%

66%

Driving Force Behind the Switch


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Must-Have Expense Reporting Features

Automation: Expense report creation, workflow process and approvals, direct credit card feeds

Mobile Applications: Smartphone-enabled receipt image capture, mobile report creation and approval, and policy tools

Compliance: Duplicate receipts/expenses, category spending limits, automatic notification of violations

Integration: Accounting software, general ledger, HRIS, CRM, ERP, ACH direct deposit

Reporting: Complete visibility into process and spending by category, department, employee

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Best-in-Class T&E Strategies

Aberdeen Group 2015

Expen

se reports

audited re

gular

ly

Automatic li

nkage

betwee

n expen

se mgt. a

nd back-en

d syste

ms

Online t

ravel b

ooking syste

m

Commercial ca

rd syste

m/program

End-to

-end ex

pense

mgt. solution

88%

58%

87% 77% 68%63%

34%

63%50%

35%

Best-in-Class Industry Average

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Best-in-class expense management practices drive 87% compliance or higher with company T&E policy

Aberdeen Group 2015

Polling Question 2

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?

73%

T&E Policy Compliance

85%of all companies report

having a writtenT&E policy in place

of those companies are manually reviewing

for policy violations

Manual policy review is inefficient, prone to error and fraud


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T&E policy is not enforced Employee is responsible Manager manually review each expense

Manager manually review, checking only high value

expenses

T&E system automatically flags out-of-policy violations

6%

31%

42%

20%

26%

Policy Enforcement Practices


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53% of companies on a web-based system

Systems and data integration

Mobility/mobile access

Travel booking

Transparency/visibility into reporting data

Expense management process

9%

10%

11%

21%

37%

Key Areas for Improvement


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A COMBINATION OF ABOVE

A TRAVEL AGENCY

CORPORATE TRAVEL SOFTWARE

ONLINE TRAVEL SITES

0% 10% 20% 30% 40% 50% 60%

43%

22%

15%

20%

29%

15%

5%

51%

Manual Web-based


Travel Booking Technologies

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Travel Booking Controls

Pre-Trip Approval:Requires manager authorization prior to booking; configurable by employee,

policy specifics, etc.

Lowest Logical Fare:Automatically identifies best available rates for proposed itinerary (and only

best available rates)

$

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Companies that track/apply unused airline tickets can save 5-8%

of total annual travel budget

2015 GBTA Ancillary Fee Handbook

Polling Question 3

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?

Cost to Process a Single Expense Report

$6.85fully automated

$17.31 semi-automated

$26.63 manual process

PayStream Advisors 2015

28%

19%

5%

48%

Under $7 per report $10−$20 per report$25 or more per report We do not track these costs


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Automation Drives ROI


Businesses of every size are quickly realizing ROI:

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Impr

oved

effic

iency

/expen

se re

portin

g pro

cess

Reducti

on in

proce

ssing

costs

(less

paper

, pos

tage,

stora

ge etc.

)

Mobile

acces

sibilit

y

Increas

ed emplo

yee p

rodu

ctivit

y

Elimina

tion of

paymen

t for d

uplica

te ex

pens

es

Reducti

on in

over

head

/staffin

g requ

iremen

ts

58%53%

33%26% 22% 22%

How ROI is Achieved

What are the ways you’ve achieved ROI on your automated expense management system?


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Automation Gets Results

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Certify Customer Case Study Results 2015

Questions?

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Taking control of employee spending business travel and expense management trends 2016

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