In this webinar, we examine the top priorities of today’s CFOs and how automation helps to achieve these goals. We walk through five strategic themes that your business case must address if you want buy-in from the c-suite.

1. Winning CFO Approval for
Expense Management Automation
October 30, 2018

2. 2
Ernie Humphrey
Chief Executive Officer
360 Thought Leadership Consulting
360 Thought Leadership Consulting helps companies
define and unlock the strategic value of their thought
leadership programs. Formerly, Ernie served as Vice
President, Educational Programs for Proformative, as
the Director of Treasury Services and as a Director of
the Corporate Treasurers Council for the Association
for Financial Professionals.
Featured Speaker

3. 3
About Certify
• Integrated, automated solutions for travel, expense
and accounts payable invoice
• 64 languages, 140+ currencies, clients in 80 countries
• #1 G2 Crowd for user satisfaction in expense
management software (2014-2018) and Momentum
Grid leader in expense management software (2018)
• PC Magazine Editors’ Choice for best expense tracking
software (2015-2018)
• Processing expenses and receipts valued
at $10 billion annually

4. The Automation Conundrum

5. Polling Question 1
a) Pen and paper
b) Microsoft Excel/ spreadsheets
c) Homegrown solution
d) Web-based solution
e) ERP/ accounting package (Oracle, SAP, etc.)
What methods do you use for managing T&E in your organization?

6. 6
Certify Annual Trends Study 2018
500+ accounting professionals from outside the Certify customer base:
39%
44%
17%
Director-level or above with expense
reporting responsibility (CEO, CFO, etc.)
Manager, controller
or accountant
Other (accounting staff, consultant,
administrative, etc.)
2018 Expense Management Trends Report, Certify, Inc.

7. 7
Methods for Managing T&E Reporting
10%
33%
6%
34%
17%
2018 Expense Management Trends Report, Certify, Inc.
Pen and Paper
Microsoft Excel/Spreadsheets
Homegrown Solutions
Web-based Solutions
ERP/accounting package (Oracle, SAP, etc)

8. 8
Finance Remains a Manual Affair at Many Businesses
49%Of businesses process expense reports using
some form of a manual system

9. 9
T&E Systems by Company Size
36%
35%
13%
4%
11%
39%
18%
3%
8%
32%
28%
42%
13%
5%
12%
Web-based solution (Concur, IBM, etc.)
Microsoft Excel/spreadsheets
Pen and paper
Homegrown solution
ERP/accounting package (Oracle, SAP, etc.)
SMALL
BUSINESS
MID-SIZE
BUSINESS
ENTERPRISE
2018 Expense Management Trends Report, Certify, Inc.

10. 10
T&E Systems by Company Size
36%
35%
13%
4%
11%
39%
18%
3%
8%
32%
28%
42%
13%
5%
12%
MANUAL SYSTEMS:
29% enterprise | 60% small businesses
2018 Expense Management Trends Report, Certify, Inc.
Web-based solution (Concur, IBM, etc.)
Microsoft Excel/spreadsheets
Pen and paper
Homegrown solution
ERP/accounting package (Oracle, SAP, etc.)

11. 11
The Manual T&E Process is Antiquated
Unclear policies coupled with:
• Paper receipts
• Paper expense reports
• Manual routing for approvals, audits, and payments
Unclear policies cause:
• High cost, inefficient process
• Inflated travel charges
• Noncompliance to laws and regulations
• Sets the opportunity for fraud

12. 12
While Automation Yields Positive ROI
33%of businesses that have
automated expense report
processing achieved ROI in
12 months or less
Features/Sources of Expense Report ROI
(% reporting)
%
Improved efficiency/expense reporting process 58%
Reduction in processing costs (less paper, postage, storage,
etc.)
53%
Mobile accessibility 30%
Increased employee productivity 27%
Travel booking control (pre-trip, authorization, etc.) 23%
Reduction in overhead/staffing requirements 23%
Reduction in fraudulent expenses 22%
Elimination of payment for duplicate expenses 22%
More accurate mileage tracking/mapping 17%
Other 17%
2018 Expense Management Trends Report, Certify, Inc.

13. 13
So Why Are Companies Not Automating?
• Lack of budget
• Lack of resources to research and implement a new system
• Larger businesses which are locked-in to existing systems or workflows
One of the biggest reasons:
Finance leaders do not know how to convince their CFO that automation
is the right choice.

14. How to Activate Change?
Understand the
Changing Role of the CFO

15. 15
The Key Priorities of CFOs Today
After years of defensive cash management, CFOs are shifting
their focus to growth:
71%
of CFOs say their organization considers growth to be a strategic priority*
95%
of CFOs foresee “positive” business growth in 2018**
85%
of CFOs are optimistic about prospects for U.S. economic growth—up from
64% at the beginning of 2017**
*Accenture, **PricewaterhouseCoopers

16. 16
But Faster Growth Also Brings Challenges
CFOs must develop strategies to support growth while:
Managing financial complexity
Keeping costs in check

17. 17
Growth-Minded CFOs Need Tools To:
Uncover opportunities to reduce costs
Enhance productivity and efficiency company-wide
Improve visibility into cash and spending
Support strategic decisions
Mitigate risk and compliance concerns
This is where automation comes in.

18. The 5 Strategic
Benefits of Automation

19. 1. Uncover Opportunities to Reduce Costs

20. Top T&E Pressures to Improve in 2018
#1 Need to reduce expense processing costs
#2 Poor visibility into travel/expense data
#3 Lack of control over T&E spending
#4 Frequent non-compliant travel/expenses
#5 Inconsistent and lengthy reimbursement cycles
2018 Expense Management Trends Report, Certify, Inc.

21. 21
Polling Question 2
a) Under $7
b) $10 - $20
c) $25 or more
d) I don’t know
How much does it cost in your organization to process
one expense report?

22. 22
Uncover Opportunities to Reduce Costs
$6.85
fully automated
$17.31
semi-automated
$26.63
manual process
PayStream Advisors 2017
Industry average cost to process ONE expense report:

23. 23
Self-Reported Processing Costs
31%
16%
9%
Under $7 per report $10−$20 per report
$25 or more per report We do not track these costs
44%
do not track expense report
processing costs

24. 24
How Automation Reduces Costs
Streamlining of processes—such as business travelers capturing receipts
on their mobile devices
Eliminate costs of printing, delivering, physically storing documents
Configurable workflows facilitate digital routing of expenses for approval
Top-performing finance organizations run at 36% lower cost
than their peers*
*PricewaterhouseCoopers

25. 2. Enhance Productivity and Efficiency Company-Wide

26. 26
How Much Time Is Lost to Manual Tasks?
minutes to complete
one expense report
up to 23
minutes to correct
expense reports errors
15-22
average number of
reports with errors
22%
Expense Reporting Around the World:
Practices, Pain Points, and Productivity, GBTA, 2015

27. 27
Enhance Productivity and Efficiency
Automating expense processing
increases employee
productivity by 29%
55% of best-in-class companies have
automated expense management, compared
to 45% of all other companies
Aberdeen Group

28. 28
Calculating Costs and Lost Opportunity
Time spent
per reportX
Hourly wage
or salary
Individual Employee:
Sales Representative:
= Overhead cost
per report
Time spent
per report÷
Total available
selling time = Lost selling
opportunity (%)

29. 3. Improve Visibility into Cash and Spending

30. 30
Business Investment in T&E
6-12%
Total annual budget
for T&E expenses
(Aberdeen Group 2014)
Company Revenue Annual Spend
Under $100MM $700,000
$100MM to $500MM $1,500,000
$501MM to $2B $7,400,000
$2B and above $58,000,000
PayStream Advisors 2016

31. 31
How Companies Set T&E Spending
We do not have expense
category spending limits
Budget based on
company historical
spending
Follow U.S. GSA per diem
rate guidelines
Determined by annual
budgeting process
Other
30%
7% 13%
21%
29%
2018 Expense Management Trends Report, Certify, Inc.

32. 32
Visibility is a Key Pain Point for CFOs
20%of companies point to a lack of
transparency/visibility into data as one of their
biggest expense management pain points
2018 Expense Management Trends Report, Certify, Inc.

33. 33
The Benefits of Integrating a Web-Based System
• Integrating a web-based system with an ERP or general ledger system delivers
360-degree visibility into spending while automating workflows
• Integrating a web-based system with a credit card feed provides greater control
over spending and faster reconciliation
• Automation puts information at the fingertips of CFOs and other cash managers

34. 34
Polling Question 3
a) Credit card feed
b) ERP
c) CRM
d) A/P
e) General ledger
f) Workforce management
g) Meeting management
What types of data integrations would you want to implement
with a web-based expense management system?

35. 35
Data Integrations
18%
12%
70%
Meeting management
(event platform)
55%
20%
25%
A/P
52%
20%
28%
Credit card feed
(corporate or personal)
33%
17%
50%
ERP (Oracle, SAP, etc.)
18%
14%
68%
CRM
(Salesforce, SugarCRM, etc.)
60%
21%
19%
General ledger
26%
15%59%
Workforce management
Currently
Implemented
Will
Implement
No Plan to
Implement
2018 Expense Management Trends Report, Certify, Inc.

36. 4. Support Strategic Decisions

37. 37
The CFO’s Role is Changing
From financial scorekeeper to financial strategist.
Automated expense management solutions provide reporting and visibility
into data across systems—with instant access to information.
This helps CFOs:
• Quickly measure spending against budgets
• Manage budgeting, planning, and forecasting
• Identify historical budget overflows
• Align expense management strategies with enterprise objectives

38. 38
Granular Data Helps CFOs
• Study spending tendencies by department, employee, expense type, etc.
• Identify opportunities for consolidation of suppliers
• Equip sourcing teams with the data they need to negotiate contracts
• Eliminate delinquencies and late fees
Top performing finance organizations spend 20% more time
than their peers on data analysis versus data gathering
PricewaterhouseCoopers

39. 39
Polling Question 4
a) We mainly focus on data gathering
b) An equal mix
c) We mainly focus on data analysis
What percentage of your finance’s teams time is spent
in data analysis versus data gathering?

40. 5. Mitigate Risk and Compliance Concerns

41. 41
T&E Fraud
The Association of Certified Fraud Examiners reports:
• Approximately 15 percent of all fraudulent disbursements involve
expense reimbursement fraud
Most common types of expense reimbursement fraud:
• Mischaracterized expenses (disguising personal expenses)
• Overstatement of actual expense (altering receipts)
• Fictitious expenses (usually counterfeit receipts)
• Multiple reimbursements (submitting duplicate reports)

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Risk Mitigation is Racing Up the Agenda of CFOs
• Businesses must prove the effectiveness of internal controls and track
compliance with complex regulations, such as Sarbanes-Oxley, The
Physician Payments Sunshine Act, and IRS guidelines
• Automated expense reporting solutions provide instant access to expense
data as well as built-in compliance features.
• Regular audits of expense reports help businesses pinpoint areas of non-
compliance, flag expenses for potential fraud, curb bad behavior, and
ensure that expenses meet tax rules.

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Top Expense Management Pain Points
Leading frustrations for T&E program administrators:
2016 2017 2018
Employees losing paper receipts/submitting without receipts 50% 52% 50%
Employees failure to submit reports on time 45% 51% 50%
Time it takes to reconcile, review and approve reports 38% 36% 31%
Reviewing for policy violations 30% 28% 28%
Errors on expense reports (incorrect codes, amounts, etc.) 28% 26% 30%
2016-2018 Expense Management Trends Report, Certify, Inc.

44. Building a CFO-Centric
Business Case for Automation

45. 45
Next Steps
It seems like a no-brainer; automated expense reporting is more efficient and cost effective
than manual systems. Yet companies continue to avoid automation. Use these five benefits
to show how automation aligns with the CFO’s objectives to:
1. Uncover opportunities to reduce costs
2. Enhance productivity and efficiency enterprise-wide
3. Improve visibility into cash and spending
4. Support strategic decisions
5. Mitigate risk and compliance concerns
And you’ll be able to persuade even the most skeptical of CFOs.

46. Questions?

47. Thank You!