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Controlling Spend with Improved T&E Processes
- 1. Controlling Spend: The Elements of an Improved T&E Process Mark Brousseau, President Brousseau & Associates
- 2. Please note … • To minimise disruption you all have automatically been muted. • If you have any questions, please enter them in the questions box, as there will be a short Q&A session at the end of the webinar. • Following this session, you will be sent a copy of the presentation slides, and a recording of the webinar. Thank you for joining us today
- 3. Controlling Spend: The Elements of an Improved T&E Process
- 4. Featured Presenter Mark Brousseau President Brousseau & Associates
- 5. Learning Objectives 1. Apply specific tactics to leverage spend data and achieve smarter growth. 2. Give examples of ways to increase the visibility—and value—from your travel and expense (T&E) spending. 3. Recognise the current state of the T&E industry and emerging trends that could impact your organisation.
- 6. About Certify • Integrated, automated solutions for travel, expense, accounts payable invoice, and purchasing • 64 languages, 140+ currencies, clients in 80 countries • Rated #1 by G2 for user experience in expense management software (2014-2019) and Momentum Grid leader (2018) • PC Magazine Editors’ Choice for best expense tracking software (2015-2019) • Recognised as a Leader in the IDC MarketScape for Worldwide Travel and Expense Management Software • Processing expenses valued at over $5.1 billion annually
- 7. Our Agenda 1. The dynamism of travel and expense—and why it matters 2. Key findings from Certify’s 2019 Travel and Expense Management Trends Report 3. T&E management and controlling spend 4. The art of leveraging industry benchmarks 5. Recommendations for improving T&E management
- 8. Before COVID-19, in-person meetings were the gold standard: • Customer relationships • Supplier relationships • Professional development for employees T&E Spending is Changing
- 9. The Scale of T&E 77% of all E.U. business travel ($253 billion) was spent in Germany, the U.K., France, Italy, Spain, and the Netherlands $1.41 trillion spent globally on business travel activity in 2018 $330.3 billion spent on business travel in Western Europe in 2018 Source: GBTA BTI™ Outlook – Annual Global Report & Forecast 2019
- 10. Now, organisations must adapt quickly and move critical functions online so that business can continue without requiring employees to be in the office. T&E Spending is Changing
- 11. Companies maintain business continuity by investing in: • Home office equipment, supplies, and monthly expenses • Software for hosting virtual conferences • Tools to replace in-person collaboration and meetings • Solutions to digitise paper-based processes T&E Spending is Changing
- 12. Empowering employees to spend wisely provides a sense of stability that allows them to continue achieving their goals— even as everything changes. Stability Matters
- 13. As employees shift to working from home, how can we improve control, efficiency, and visibility into company-related spending?
- 14. Invest in T&E Done Right An effective T&E reporting process: • Lowers expense report processing costs companywide • Increases the productivity of every employee • Maximises the productivity of managers, accountants, and finance staff • Improves visibility into spending and working capital management • Adds stability and continuity while transitioning to work from home • Impacts top- and bottom-line revenue continuously
- 15. The Hidden Costs of Expense Management Common costly frustrations: • 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 and lost opportunity • Lack of visibility into T&E spending
- 16. a) Under £8 b) £9 – £16 c) £17 – £24 d) £25 or more e) We do not track these costs Polling Question 1 How much does it cost to process a single expense report at your organisation?
- 17. Effective T&E management empowers employees to spend wisely while increasing visibility and control for finance teams.
- 18. 2019 T&E Management Trends Report • Survey of hundreds of finance professionals outside of Certify’s customer base • The resulting report—now in its seventh year—offers insights, concerns, and areas of focus for travel and expense management • Used by industry publications to identify trends and benchmarks • Reveals how companies use technology to improve T&E management 2019 Travel & Expense Management Trends Report, Certify, Inc.
- 19. About the Research 37% 44% 19% Manager, controller, or accountant Other (accounting staff, consultant, administrative, etc.) Director-level or above with expense reporting responsibility (CEO, CFO, etc.) Company Size Enterprise: More than 1,000 employees Mid-Market: 101-999 employees Small Business: Less than 100 employees 23% 40% 37% 585 Finance professionals surveyed from outside the Certify customer base 2019 Travel & Expense Management Trends Report, Certify, Inc.
- 20. Areas of T&E Management: Most Critical to Improve Expense management process efficiency Transparency / visibility / reporting related to spend Corporate travel policy compliance Audit and reporting Travel booking 25% 14% 12% 11% 11% 2019 Travel & Expense Management Trends Report, Certify, Inc.
- 21. Top Three Areas for Improvement Policy Compliance Visibility of T&E Spend Efficiency for T&E Management 2019 Travel & Expense Management Trends Report, Certify, Inc.
- 22. Controlling T&E Spend: A Formal T&E Policy Do you have a T&E policy in place? 72% 21% 7% Yes No I don’t know 2019 Travel & Expense Management Trends Report, Certify, Inc.
- 23. Controlling T&E Spend: T&E Policy IQ 72% of organisations have a formal T&E policy in place. But 58% of respondents report that their travelers’ understanding of their T&E policy is, at best, “decent—but in need of improvement”. 2019 Travel & Expense Management Trends Report, Certify, Inc.
- 25. Craziest Expenses Survey, 2019, Emburse
- 26. Craziest Expenses Survey, 2019, Emburse
- 27. Craziest Expenses Survey, 2019, Emburse
- 28. Craziest Expenses Survey, 2019, Emburse
- 29. T&E Policy: The Foundation of Control An effective corporate travel policy: • Is clear and simple to follow for all employees • Is up-to-date with rules, partners, and discounts • Manages the average traveler within the organisation • Allows for reasonable accommodations • Contains clear explanations for limits and restrictions • Considers travel vendors with discounts and preferred pricing • Enforces legal compliance with VAT standards and other regulations
- 30. a) 0 – 24% b) 25% – 49% c) 50% – 74% d) 75% – 100% e) I am not sure Polling Question 2 What percentage of submitted expenses adhere to policy?
- 31. Controlling T&E Spend: T&E Policy Compliance How does your company enforce its travel and expense policy? 29% 27% 19% 17% 5% 3% Manually check each expense Our T&E system automatically flags out of policy expenses Responsibility of employees Manually, only reviewing expenses with a high value Our T&E policy is not enforced I don't know 2019 Travel & Expense Management Trends Report, Certify, Inc.
- 32. Controlling T&E Spend: Policy Compliance What percentage of submitted expenses are within policy? 22% 54% 16% 3% 5% 0 – 24% 25% – 49% 50% – 74% 75% – 100% I am not sure 2019 Travel & Expense Management Trends Report, Certify, Inc.
- 33. 46% of organisations report less than a 75% rate of compliance with their T&E policy. 26% of enterprise-sized organisations do not know what percentage of submitted expenses are T&E policy compliant.
- 34. Improve corporate spending using industry benchmarks.
- 35. The Art of Leveraging Benchmarks Focus on What Matters Continually Verify What Matters Compare “Apples to Apples” Compare Data Over Time Compare Data Across Industries The Magnitude of Trends The Direction of Trends The Driver of Trends
- 36. Highlights from the 2019 SpendSmart™ Year-in-Review Report.
- 37. About SpendSmart™ The SpendSmart Year-in-Review Report tracks T&E spending benchmarks drawn from more than $5.1B in expense transactions processed by Certify in 2019.
- 38. T&E Category Benchmarks T&E Category Benchmark Averages in 2019 Percentage of total annual T&E transactions by expense category based on more than $5.1B in transactions processed by the Certify system in 2019. Certify SpendSmart™ Year-in-Review Report, 2019
- 39. Expense Category Averages How the T&E budget was spent according to our 2019 SpendSmart Year-in-Review Report Certify SpendSmart™ Year-in-Review Report, 2019
- 40. a) Amazon b) British Airways c) Costa Coffee d) Marriott e) Uber Polling Question 3 What was the most expensed brand of 2019?
- 41. SpendSmart Benchmarks Most expensed brands overall for 2019 13% 4%4%5% Certify SpendSmart™ Year-in-Review Report, 2019
- 42. Scooters Zip Into Expense Reports 50% 42% 4% $6.88 Average Cost Per Rental $10.28 Average Cost Per Rental $8.83 Average Cost Per Rental Certify SpendSmart™ Year-in-Review Report, 2019
- 43. T&E Benchmark Calculator https://www.certify.com/benchmarkquiz.aspx Certify SpendSmart™ Benchmark Calculator SEE HOW YOUR T&E SPENDING COMPARES TO INDUSTRY AVERAGES Enter your average cost per transaction for the travel and expense categories below. We'll compare it with Certify's SpendSmart 2019 benchmark data and send you a customised overview of how your spending stacks up to the averages.
- 44. Gain even more value from your T&E spending with analytics.
- 45. Recommendations for Improving Spend Put Your Data to Good Use Invest in Process Improvement Stay on Top of Industry Trends
- 46. Cashflow management and forecasting • How quickly can finance access—and act on—expense data? • Do they have the level of visibility they need to inform strategy? Expense trends and vendor negotiations • Where do you spend the most? • Are you buying the same product from multiple sources? Is a spend category growing? Budget allocation and usage • Are any departments under- or over- spending? • Are travelers spending within an appropriate range for their role in the company? Improving policy compliance • How many expenses are within policy? • Do you have a high occurrence of exceptions —and what is the root cause? Recommendations for Improving Spend Utilise T&E data for:
- 47. Unleash Your Data Set aside time to review your expense metrics and analytics against industry benchmarks. • How can we make expense management efficient and effective? • Do our expense benchmarks align with industry averages? • Has our spending behaviour changed? • Should we update our travel policy?
- 48. How can we make expense management efficient and effective? • Identify the average cost to process a single expense report from end-to-end • Discover how many reports have errors or exceptions—and the cost to fix them • Learn which travelers and departments are spending within policy Unleash Your Data
- 49. Unleash Your Data Get the Visibility You Need
- 50. Has our spending behaviour changed, and should we update our travel policy? • Identify top expense categories, average costs, and vendors • Improve traveler’s usage of preferred vendors and discount programs • Optimise T&E budgets by company, location, department, or traveler Unleash Your Data
- 51. Invest in Improving Processes Using Data Discuss additional challenges or bottlenecks in finance and potential improvements like: • Integrating data from additional business systems to get a wider view of company spending • Moving to a dedicated travel, invoice, or AP platform to control costs, increase spend visibility, and improve productivity and satisfaction • Lowering reimbursement times and transfer or FOREX fees with an alternative payment provider
- 52. a) Non-existent b) Minimal at best c) Okay, but we have major blind spots d) Good, but we could do better e) Ideal, we have near real-time visibility Polling Question 4 How would you describe the level of visibility your company has relative to T&E spend?
- 53. Closing Thoughts and Additional Resources
- 54. Closing Thoughts • Visibility into T&E processes and spend is critical for T&E management • Leveraging benchmarks is a valuable tool in managing and improving T&E management • An effective T&E policy is a key pillar of T&E done right—and should adapt with the industry and business climate • The right technology, combined with employee education, reduce risk while driving T&E policy compliance
- 55. Additional Resources 2019 SpendSmart™ Year-in-Review Report & Infographic: http://www.certify.com/CertifySpendSmartReport.aspx SpendSmart Benchmark Calculator: https://www.certify.com/benchmarkquiz.aspx 2019 Expense Management Trends Report: https://www.certify.com/2019-Travel-Expense-Management-Trends-Report.aspx Five Years of The Craziest Expenses: https://www.certify.com/the-craziest-expenses-survey-the-best-of-2013-2018.aspx
- 56. Questions & Answers Use the Q & A Panel to send us your questions.
- 57. Thank You to Our Presenter! Mark Brousseau President Brousseau & Associates
- 58. Thank You!
Editor's Notes
- Mark’s Bio: Mark Brousseau is a noted analyst, speaker, writer, and marketer with more than 26 years of experience in advising leading providers of financial operations solutions and services. Brousseau is president of Brousseau & Associates, a full-service strategic marketing and business development consultancy with the largest client base of any firm of its kind. He lives in Center City, Philadelphia with his family. Please join me in welcoming Mark Brousseau.
- Before COVID-19, most of this spending required employees to be in-person. But as more restrictions are placed to ensure our safety, T&E spending is shifting online.
- In extraordinary times, it’s important to maintain business continuity.
- High-level overview of Trends Report and credibility
- Speak to demographics briefly
- Certify’s parent company, Emburse, recently released results from their annual Craziest Expenses Survey. Here are a few highlights.
- I wonder if anyone on our call today has a policy that allows for scooter rentals. The industry changes so quickly, it’s essential to review your policy and adjust for the changing times. This is especially true with something like scooter rentals and how it relates to duty of care.
- If you’re looking for a quick way to compare your company’s spending, check out Certify’s SpendSmart Benchmark Calculator.
- Are you noticing a lot of spend with Vendors like Amazon, or any other vendor where you spend frequently or with large volumes? You could have an opportunity for savings by switching to an AP solution to cut costs and open up visibility to take advantage of DPOs and other discount programs for early payment.