T&E Management: Comparing spreadsheets with expense report automation
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Transcript of T&E Management: Comparing spreadsheets with expense report automation
T&E Management for 2015:Comparing Spreadsheets with Expense Report Automation
October 15, 2015
• The expense report processing costs for spreadsheet-based manual processes and automated systems
• How to improve control over employee spending and business travel decisions
• What companies like yours are doing to enforce policy compliance and reduce fraud
• New ways automation can tame your data management and simplify administrative reporting
• Strategies to streamline the expense reporting process and improve productivity
After attending this event you will learn:
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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Ben ParkerRegional Sales Executive
Ernie HumphreyChief Executive Officer
Today’s speakers
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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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T&E Management Trends:
Manual vs. Automated
a) Paper-based/spreadsheetsb) ERP system (Oracle, Microsoft Dynamics, etc.)c) Web-based expense software (Certify, Concur, etc.)d) Not applicable
POLLING QUESTION 1
How does your organization currently manage T&E spend?
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Reference: Certify Annual Expense Management Outlook 2015
Manual processes are used by the majority of companies, however Excel or electronic spreadsheets, pen/paper and homegrown systems provide little control or visibility.
37%WEB-BASED
43%MANUAL
19%
ERP
Methods for managing T&E reporting
T&E Adoption Rates
Manual - 64%ERP - 11%Web-Based - 25%
Manual - 19%ERP - 33%Web-Based - 48%
Manual - 48%ERP - 19%Web-Based - 34%
Small Business Medium Business Large Business
Reference: Certify’s Annual Travel & Expense Management Survey 2015
T&E management trends
9
10
$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
Annual T&E spend by company size
of small businesses have migrated off of Excel/spreadsheets as their expense management system within the last 12 months
of small businesses currently use a web-based expense system, compared to 8% last year.
20% 67%
25%
of companies indicated Excel/spreadsheets as their expense management system in 2014
Reference: Certify Annual Expense Management Outlook 2015
The shift to web-based expense systems
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Comparison #1:
Processing Costs
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 2
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$36−$64 depending upon the degree of automation used (American Express)
Best-in-class companies: $7.17 Laggard organizations: $41.12 (Aberdeen Group)
$26.63 manual
$17.31semi-automated
$6.85fully automated
(PayStream Advisors)
Expense report processing costs
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• Man hours to create, review and approve reports
• Hard costs for paper, printing and postage
• Time required for reconciliation and reimbursement • Storage fees to archive expense reports • Lost productivity
PayStream Advisors 2015
of all companies do not know their expense report processing costs80%
$$$Expense report processing costs
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Gather receipts, itineraries and write down
non-receipt items
Enter expenses in Excel with category, vendor, dates, etc.
Print spreadsheets, tape or staple receipts and make
copies
Sign report/date report and present or mail to
manager
And then … wait
Receive reports for all employees at different times
during the month/quarter
Check expenses for receipts, review for out-
of-policy items, etc.
If errors, return report to employee to start over; wait for resubmission
Sign/approve reports and route to the next manager or to AP
Receive reports for all employees at different times
during the month/quarter
Match receipts with line-items, verify all charges,
dates and vendors
Check for receipts, manager approvals, out-of-policy
items, etc.
Manually enter expense data into accounting
software
Manually enter data from accounting
software to payroll for reimbursement
Accountants
Managers
Employees
Manual expense reporting costs
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48%
28%20%
32%24%
13%
Best-in-Class Laggards
Top Pressures Driving T&E Improvements
Aberdeen Group Travel and Expense Management: Spend and Save
Cost and process inefficiency drive change
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Comparison #2:
Spending Controls
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Spreadsheets offer little control:
• Does not integrate with electronic systems for travel booking, corporate payments, AP, ERP, HRIS, etc.
• Inefficient and redundant manual data entry negatively affects employee productivity and leads to reporting errors
• Making the right policy choices left to employee discretion when planning travel and making business purchases
Spending control
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Aberdeen Group: Travel and Expense Management: Spend and Save Maybe …
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
T&E strategies and tools used by best-in-class companies
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• 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
77%
50%
Best-in-ClassIndustry Average
Corporate credit card integration
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Open Booking
(through direct provider)
Online Travel Sites/Agencies(i.e. Expedia, Orbitz, Kayak)
Online Booking Tool (OBT)
(i.e. Carlson, Get There)
Travel Agency
(through a travel agent)
PRO: Flexibility
CON: No control over policy enforcement
PRO: Flexibility
CON: No control over policy enforcement
PRO: Policy enforcement
CONS: Contracts and systems; minimum transactions. Best for organizations spending over $2mm on T&E.
PRO: Full-service policy enforcement
CONS: Cost; $40-50 fee in addition to booking fees. Best for organizations spending over $4mm on T&E.
Online Travel SitesTravel AgencyOnline Booking Tool
68%
21%
11%
48%
42%
10%
How companies are booking travel:
Manual process
Web-based process
Integrated corporate travel
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Mileage reimbursement before and after using an automated system with integrated mapping
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
T&E control = real savings
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Comparison #3:
Policy 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 3
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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
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• 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+
• Organizations that monitor compliance experience a 70% decrease in fraudulent spending
Association of Certified Fraud Examiners
Oversight Systems
82%
Expense report fraud
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1. Establish a corporate travel and entertainment expense policy
• Clearly defined for all employees with ongoing training• Executive support for T&E policy is essential
2. Integrate your policy into the expense system, setting both:
• Hard Policies (decline expense exceeding X amount)• Soft Policies (manager’s discretion for approval)
3. Allow technology to enforce policies, notifying employees and managers of violations, including:
• Missing receipts• Duplicate expenses• Items exceeding spend limits
Flagged violation, notifying manager amount exceeded policy limit
Automate policy compliance
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1. An end-to-end expense management system allows administrators to automate policy controls across a single platform for improved employee compliance
2. Pre-trip approvals using an integrated online travel booking system can stop out-of-policy expenses before they occur (used by 87% of all best-in-class companies)
3. Mobile applications encourage policy compliance by making it easier for employees; mobile also reduces expense report processing costs by up to 65%
Adopt a unified platform
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Comparison #4:
Reporting Visibility
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One spreadsheet can’t tell the whole story:• Inability to link receipts or images with expense line items; you can email
spreadsheet expense reports but can’t link receipts
• Lack of integration with corporate and accounting systems limits availability and accessibility of expense data
• Inefficient, labor-intensive manual administrative reporting process subject to human error affecting accuracy of information
• Auditing expense reporting via a manual process is ineffective, often relies on sampling due to sheer volume
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
Reference: Certify’s Annual Travel & Expense Management Survey 2015
Technology improves visibility
• 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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Additional analytics for GL dimensions, pending reports, approval actions, processed reports, multiple input parameters and more
Expenses By Category shows totals for expense categories and employees simultaneously
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
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Comparison #5:
Process Automation
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Reviewing for policy violations
Reconciling the data
Errors on the report
Employees losing receipts
Time it takes to reconcile, review, and approve
Employee's failure to submit reports on time
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Inefficiency tops the list:
Reference: Certify’s Annual Travel & Expense Management Survey 2015
Top pain points in 2014
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Reference: Certify’s Annual Travel & Expense Management Survey 2015
Process is an opportunity:
Expense Management Process
Integration Between Systems
Travel Booking Mobility Software Deployment
36%
25%21%
14%
4%
Top areas to improve in 2015
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• Automated approval workflow: Managers instantly notified of reports pending approval, decreasing lifecycles and reimbursement times
• Online expense report creation: create, submit and approve expense reports online; no more time-consuming spreadsheets
• Mobile receipt capture: employees take a photo of a receipt with their smartphone instantly turning it into an electronic receipt
• Direct feeds: automated feeds sync data with accounting, credit card and HR systems to simplify reporting and eliminate redundant manual data entry
Examples of T&E automation
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Remove barriers to efficiency:• Take guesswork out of T&E policy compliance• Expedite spend capture and report creation• Eliminate manual processes, redundant data entry• Provide a single, familiar platform for all users
Give travelers the power of mobile apps: • Automate receipt capture• Reduce paper usage and storage• Streamline report creation and review • Approve reports anywhere, anytime (managers)
Streamline workflow inside and out
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• Transition from manual to automated expense management process with 500 company employees using the system
• Streamlined processes for expense report creation, plus mobile access with automatic receipt capture
• $40,000 first year savings from avoiding duplicate/out of policy expenses and reduced paper postage costs
• Increased visibility from extensive integrated reporting capabilities also used to help with annual budget planning
• Reduced overhead—the full-time accountant for expense auditing was reassigned to a higher-value function within the company
Benefits with Certify
Thank You
Q & A