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:

Mark BrousseauPresident and Owner

Brousseau & Associates

Today’s Presenter

Featured Speakers

Josh CaseyData and Content Manager

Certify

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:

Base Costs Per Trip

Travel Leaders Corporate 2015

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

INTERNATIONAL DOMESTIC

$2,502 $1,002

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

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

$98.75DAILYMEAL COST

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

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

How Travelers Spend the Company Dime

Most expensed and highest rated for dining:

Most expensed and highest rated for hotel:

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

Ground Transportation Trends

Certify SpendSmart Report 2014 - 2016

Ground Transportation Trends

+1890% ride-hailing receipts in 2 years

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

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

SMALLBUSINESS

MID-SIZEBUSINESS ENTERPRISE

Certify Annual Travel & Expense Management Survey 2016

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

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

Driving Force Behind the Switch

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

Best-in-Class T&E Strategies

Aberdeen Group 2015

se reports

audited re

Automatic li

betwee

n expen

se mgt. a

nd back-en

d syste

Online t

ravel b

ooking syste

Commercial ca

rd syste

m/program

End-to

-end ex

mgt. solution

87% 77% 68%63%

63%50%

Best-in-Class Industry Average

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?

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

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

Policy Enforcement Practices

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

Key Areas for Improvement

A COMBINATION OF ABOVE

A TRAVEL AGENCY

CORPORATE TRAVEL SOFTWARE

ONLINE TRAVEL SITES

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

Manual Web-based

Travel Booking Technologies

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)

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

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

Automation Drives ROI

Businesses of every size are quickly realizing ROI:

/expen

portin

Reducti

ge etc.

Mobile

sibilit

Increas

ed emplo

ctivit

Elimina

tion of

paymen

t for d

uplica

Reducti

/staffin

g requ

iremen

58%53%

33%26% 22% 22%

How ROI is Achieved

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

Automation Gets Results

Certify Customer Case Study Results 2015

Questions?

Our Sponsor

Thank You!

Questions after the event? E-mail webinars@iofm.com

We hope to see you at a future AP Network event! For upcoming events please visit www.tapn.com.

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

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

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