Leveraging Technology to Deliver Best Practices in
T&E Expense ManagementNovember 16, 2016
Ernie Humphrey
President & Chief Financial Officer
Stephen Shodrock
Accounting Manager
Today’s Speakers
T&E spending is an investment. How can you ensure a return?
8-12%total annual budget
for T&E expenses(Aberdeen Group 2015)
PayStream Advisors 2016
Company RevenueAverage Annual
Travel Spend
Less than $100 million ~ $700,000
$100 million to $500 million ~ $1,500,00
$501 million to $2 billion ~ $7,400,000
Greater than $2 billion ~ $58,000,000
Business Investment in T&E
Why do accounting professionalsneed best-in-class T&E?
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 of 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 Process
Expense Management Pain Points
Certify Annual Travel & Expense Management Survey 2016
Leading frustrations for T&E program administrators:
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
$6.85fully automated
$17.31 semi-automated
$26.63manual
PayStream Advisors 2015
Expense Reporting’s Hidden Costs
Certify Annual Travel & Expense Management Survey 2016
25%
28%
32%
40%
66%
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
Top Goals for Improving T&E
T&E spending ranks as the 2nd most difficult operating expense category to control Forrester Research 2015
What can T&E technology and best practices do for your business?
Must-Have Expense Reporting Features
Automation: Expense report creation, workflow process and approvals, direct credit card feeds
Integration: Accounting software, general ledger, HRIS, CRM, ERP, ACH direct deposit
Reporting: Complete visibility into process and spending by category, department, employee
Compliance: Duplicate receipts/expenses, category spending limits, automatic notification of violations
Mobile Applications: Smartphone-enabled receipt image capture, mobile report creation and approval, and policy tools
T&E automation increases employee productivity 29% via reduced data entry, mobile tools and other timesaving efficiencies Aberdeen Group 2014
Accounting systems
HRIS/corporate systems
Corporate credit cards
ACH reimbursement
Integrations: Eliminate Manual Data Entry
Lack of visibility into spending is the top T&E area of improvement for 51% of all companiesAberdeen Group 2014
Reporting: Insight Into Process and Spending
Additional analytics for GL dimensions, corporate card activity, pending reports,
approval actions, processed reports, multiple input parameters and more
Expenses By Category
Totals for expense categories
and employees simultaneously
Meals Attendees
Displays group meal expenses
with detailed attendee information
Mileage By Employee
Captures personal automobile
usage including subtotals
Expense Policy Review
Processed and in-progress expenses
with policy violations and other issues
For the average company, an estimated 20% of total T&E spend is considered out of policyAberdeen Group 2014
T&E Policy: Make Enforcement Automatic
73%85%of all companies report having a
written T&E policy in place
are manually reviewing reports for policy violations
Mobile expense reporting reduces processing costs by 65%, delivers quicker report approval and reimbursement timesAberdeen Group 2014
Mobile: Make It Easy for Employees
OCR and auto-fill
Mobile report creation
Remote approvals
Instant policy check
What about the “T” in T&E?
Travel: Control Cost Before It’s Expensed
Pre-Trip Approval:Requires authorization prior to booking;
configured by employee, policy, etc.
Lowest Logical Fare:Automatically identifies best available
rates for proposed itinerary
$
• Category spending limits (i.e. amount not to exceed)
• Preferred travel vendors for air, hotel and car rental
• Acceptable classes of service for flights
Controllable costs via integrated travel booking:
• Advance purchase and connecting flight requirements
• Ancillary fees (upgrades, boarding, airline clubs, etc.)
• Changing or cancelling flights
Companies that track and apply unused tickets can save 5-8% of annual travel budget2015 GBTA Ancillary Fee Handbook
How else can T&E best practices save your company money?
Automation Gets Results
Questions?
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