unlocking the strategic value of t&e expense management
TRANSCRIPT
![Page 1: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/1.jpg)
Unlocking the Strategic Value of T&E Expense Management
May 19, 2016
![Page 2: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/2.jpg)
Learning Objectives
• 2016’s leading technology, trends and best practices in travel and entertainment expense management
• The top system features companies are using to effectively manage T&E expenses across the enterprise
• How improving the T&E process at your company will positively impact the bottom line
• The ways excellence in T&E Management impacts productivity for employees on the road and at the office
Today’s presentation will help you understand:
![Page 3: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/3.jpg)
3
Webinar Notes
• 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 answer all questions during the Q&A session at the end of the event. If we do not get to your question, we will follow up with you directly.
![Page 4: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/4.jpg)
• Industry-leading, first fully automated travel and expense management system
• 64 languages, 140+ currencies, clients in 80 countries
• #1 highest rated expense management software for user satisfaction on G2 Crowd
• PC Magazine Editors’ Choice for best expense management software of 2016
• Processing over 30 million expense transactions and $10+ billion in expense reports for 2015
About Certify
![Page 5: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/5.jpg)
Presented By
Ernie Humphrey, CTPCFO & Co-Founder
360 Thought Leadership Consulting
![Page 6: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/6.jpg)
T&E Expense Management and Business Travel Trends 2016
![Page 7: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/7.jpg)
Why T&E Matters
• T&E expense report processing impacts all who travel on company business; sales professionals to senior management
• Inefficient T&E expense report processing negatively impacts employee productivity up and down the corporate ladder
• Ineffective T&E expense report processing and management negatively impacts the bottom line
• Success in forecasting T&E expenses can translate into improved earnings predictability
• Establishing an effective controls framework to tame T&E expenses can be a template for expense management and corporate governance across the enterprise
![Page 8: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/8.jpg)
T&E Spending is Substantial
U.S. business travel spending in 2015(estimate: GBTA 2015)
$310bINTERNATIONAL DOMESTIC
$2,502 $1,002
Average base cost per business trip for air, hotel and car rental(Travel Leaders Corporate 2015)
$1.25tglobal business travel
spending in 2015
![Page 9: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/9.jpg)
T&E spending ranks as the 2nd most difficult operating expense category to control
Forrester Research 2015
![Page 10: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/10.jpg)
25%of all U.S. companies
spend +$1MM on T&E expenses annually
PayStream Advisors 2015
Series1
of total annual budget Aberdeen Group 2015
8-12%
T&E Expenses: More Than Relevant
![Page 11: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/11.jpg)
At 8-12% of total budget, do you know how much T&E expense management is costing your company?
![Page 12: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/12.jpg)
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
Reference: Certify SpendSmart Report, Q4 2015
![Page 13: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/13.jpg)
Category 2014 2015 Difference
Meals $25.67 $26.06 +1.52%
Airfare $345.21 $274.00 –20.62%
Lodging $213.90 $223.45 +4.64%
Car Rental $193.58 $186.45 –3.68%
Taxi $31.81 $31.82 +0.03%
Gas $40.41 $30.32 –24.96%
Parking $32.70 $32.23 – 1.43%
Cell Phone $89.30 $92.24 +3.29%
Category 2014 2015 Difference
Meals $25.67 $26.06 +1.52%
Airfare $345.21 $274.00 –20.62%
Lodging $213.90 $223.45 +4.64%
Car Rental $193.58 $186.45 –3.68%
Taxi $31.81 $31.82 +0.03%
Gas $40.41 $30.32 –24.96%
Parking $32.70 $32.23 – 1.43%
Cell Phone $89.30 $92.24 +3.29%
T&E Benchmarks: Spending by Category
Reference: Certify’s SpendSmart™ Report, 2014-2015
![Page 14: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/14.jpg)
$6.85fully automated
$17.31 semi-automated
$26.63 manual
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
Reference: Certify’s Annual Travel & Expense Management Survey 2016
Average cost to process an expense report
![Page 15: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/15.jpg)
• 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
![Page 16: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/16.jpg)
Reducing processing costs is the #1 T&E improvement for 48% of all best-in-class companies
Aberdeen Group 2015
![Page 17: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/17.jpg)
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 spending?
![Page 18: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/18.jpg)
Web-based solution (Concur, IBM, etc.)Microsoft Excel/spreadsheetsPen and paperHomegrown solutionERP/accounting package (Oracle, SAP, etc.)
T&E Systems by Company Size
MANUAL SYSTEM USAGE: 70% small businesses | 26% enterprise
22%
55%
10%
5%8%
37%
37%
9%
4%
13%
46%
16%
4%
6%
28%
SMALLBUSINESS
MID-SIZEBUSINESS ENTERPRISE
Reference: Certify Annual Travel & Expense Management Survey, 2016
![Page 19: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/19.jpg)
Improving Expense Management
Are you planning to switch or currently in the process of evaluating vendors for a new web-based system?
37%SMALL
BUSINESS
46%MIDSIZED
COMPANIES
53%ENTERPRISE
Reference: Certify’s Annual Travel & Expense Management Survey 2016
62% of all companies planning to make the switch will do so in the next 12 months
![Page 20: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/20.jpg)
Why are companies looking to T&E automation?
![Page 21: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/21.jpg)
Driving Force Behind the Switch
Reimburse employees faster
Improve employee compliance rates to corporate travel policies
Gain reporting and analytics around T&E spend
Provide expense system accessibly from anywhere (online, mobile)
Simplify the expense reporting process for employees and managers
25%
28%
32%
40%
66%
Reference: Certify’s Annual Travel & Expense Management Survey 2016
![Page 22: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/22.jpg)
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 on
the report
Reference: Certify’s Annual Travel & Expense Management Survey 2016
Top Expense Management Pain Points
![Page 23: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/23.jpg)
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 organizations turn to automation?
![Page 24: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/24.jpg)
Integrated Efficiencies
Top web-based system integrations currently in use:
General Ledger
Accounts Payable
Credit Card
67%
61%
77%
Reference: Certify’s Annual Travel & Expense Management Survey 2016
![Page 25: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/25.jpg)
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
![Page 26: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/26.jpg)
Companies using web-based expense solutions dedicate 83% less funds to processing than with other methods
Aberdeen Group 2014
![Page 27: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/27.jpg)
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?
![Page 28: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/28.jpg)
73%
Corporate T&E Policy Compliance
85%of all companies report having a
written T&E policy in placeof those companies
are manually reviewing for policy violations
Manual policy review is inefficient, prone to error and fraud
Reference: Certify Annual Travel & Expense Management Survey, 2016
![Page 29: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/29.jpg)
Expense Report Fraud
• Expense fraud accounted for nearly 14% of all occupational fraud with a median loss of $30,000
• Businesses with fewer than 100 employees have a 28% higher median fraud loss than those 100+
Association of Certified Fraud Examiners 2015 Oversight Systems 2014
82%
![Page 30: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/30.jpg)
0%5%
10%15%20%25%30%35%40%45%
6%
31%
42%
20%26%
Enforce T&E Policy Compliance
53% of companies on a web-based system
Reference: Certify’s Annual Travel & Expense Management Survey 2016
![Page 31: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/31.jpg)
How companies set T&E policy maximums and control meals, hotel and airfare spending:
25%
25%24%
20%
6%
We do not have expense category limits
Based on internal historical spending
Follow U.S. GSA per diem rate guidelines
Determined by annual budgeting process
Other
Reference: Certify’s Annual Travel & Expense Management Survey 2016
Expense Category Spending Limits
![Page 32: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/32.jpg)
Travel Booking Technologies
A combination of above
Travel management company
Corporate travel agency
Online travel sites
43%
22%
15%
20%
29%
15%
5%
51%
Manual Web-based
Reference: Certify’s Annual Travel & Expense Management Survey 2016
![Page 33: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/33.jpg)
Certify Travel Features for ROI
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)
$
![Page 34: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/34.jpg)
Best-in-class expense management practices deliver an 87% or greater compliance rate to T&E policies
Aberdeen Group 2015
![Page 35: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/35.jpg)
Effective T&E Strategies
![Page 36: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/36.jpg)
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
Top Certify Mobile features:
![Page 37: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/37.jpg)
Mobile expense reporting can reduce processing costs by up to 65%
Aberdeen Group 2014
![Page 38: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/38.jpg)
• 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)
Automate Policy and Spending Controls
![Page 39: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/39.jpg)
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
![Page 40: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/40.jpg)
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
![Page 41: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/41.jpg)
74 % of companies that automate their expense management process achieve full ROI in one year or less
Certify Annual Travel & Expense Management Survey 2016
![Page 42: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/42.jpg)
1. When is the last time we did a thorough review of our T&E policies?
2. What is the rate of compliance with our T&E travel policies?
3. What are we doing to actively manage our T&E expenses?
4. How do we benchmark our T&E spend?
5. What is the average time it takes to reimburse an employee?
6. What is the current level of automation in our T&E process?
7. Are we using, or have we looked at a cloud-based T&E expense management solution?
7 Questions to Ask at Your Company
![Page 43: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/43.jpg)
1. Review your company’s T&E policies; if you do not have them, create them
2. Improve the travel IQ of employees and take measures to enforce policies
3. Arm travelers with better technologies to simplify expense reporting
4. Automate key components of the expense management process
5. Benchmark company T&E spending regularly
6. Leverage analytics to improve intelligence and data
Specific Actions to Set the Foundation for Effective T&E Expense Management
![Page 44: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/44.jpg)
1. Identify the opportunities• Reduce costs, mobile/remote access, compliance, reimbursement times, etc.
2. Identify technical requirements• Define and align requirements from IT, Accounting, HR and other stakeholders
3. Evaluate vendors• Weigh requirements against vendor features and capabilities• Product demos and user reviews on g2crowd.com, capterra.com
4. Build your case• Hard and soft dollar benefits• Estimated time to recoup costs (ROI)
5. Implement your solution• Make sure your vendor owns IT and integration requirements
5 Steps to Improving Expense Management
![Page 45: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/45.jpg)
Q & A
![Page 46: Unlocking the Strategic Value of T&E Expense Management](https://reader030.vdocuments.us/reader030/viewer/2022012914/58ed4d521a28ab1c6d8b4697/html5/thumbnails/46.jpg)
Thank You