This webinar shares exclusive new data on T&E spending and provide proven strategies for getting the greatest return on investment for your T&E dollar.
Integration and Automation in Practice: CI/CD in Mule Integration and Automat...
2018 travel and expense trends and benchmarks to improve spend management
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2018 T&E Trends and Benchmarks
to Improve Spend Management
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5. Learning Objectives
• Risks and inefficiencies in T&E reporting that cost companies money
• Top pressures, pain points and goals for improving the T&E process
• Accounting professionals’ “must-have” expense system features for 2018
• The one challenge companies of every size face with expense management
• Why expense reporting costs employees and companies the most
Attending this event will help you understand:
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6. • Integrated, automated solutions for travel, expense
and accounts payable invoice
• 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 2017
• Processing expenses and receipts valued at $10
billion annually
About Certify
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7. Certify Annual Trends Study 2018
500+ accounting professionals from
outside the Certify customer base:
7
39%
28%
33%
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.
8. Click to add text
Click to add title
#SageSummit |@TwitterHandle (Optional) 8
2018 T&E Spending and
Expense Category Benchmarks
9. T&E Spending by U.S. Companies
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$283.6B
Spent on business travel by
U.S. companies in 2016
GBTA BTI™ Outlook – Annual Global Report & Forecast, 2017
10. 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
Business Investment in T&E
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PayStream Advisors 2016
11. 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
How Companies Set T&E Spending
2018 Expense Management Trends Report, Certify, Inc.
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30%
7% 13%
21%
29%
12. 1. Meals 19%
2. Gas 19%
3. Airfare 15%
4. Misc. 14%
5. Lodging 13%
6. Car rental 5%
7. Cell phone 4%
8. Parking 4%
9. Supplies 3%
10. Shipping 2%
11. Taxi 1%
12. Tolls 1%
How the Expense Budget is Spent
Certify SpendSmart™ Report, Q1 2018
Meals
Airfare
Lodging
Misc.
Gas
Cell
Phone
Car
Rental
Supplies
Shipping Tolls Parking
Taxi
Meals
Airfare
Lodging
Misc.
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15. Most Expensed Brands of 2018
Certify SpendSmart™ Report, Q2 2018
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11%
4%
4%
4%
16. Most Expensed Brands of 2018
Certify SpendSmart™ Report, Q2 2018
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Technology disruption
has changed the
industry and traveler
expectations
11%
4%
4%
4%
17. T&E spending ranks as the
second most difficult
operating expense category
to controlForrester Research 2014
18. Polling Question 1
a) Meals
b) Mileage
c) Airfare
d) Lodging
e) Other
As a percent of total spending, what was your
company’s largest expense category in 2017?
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19. Click to add text
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#SageSummit |@TwitterHandle (Optional) 19
Inefficiencies in T&E
Expense Reporting
20. Unclear policies coupled with:
• Paper receipts
• Paper expense reports
• Manual routing for approvals, audits and
payments
Cause:
• High cost, inefficient process
• Inflated travel charges
• Noncompliance to laws and regulations
• Sets the opportunity for fraud
T&E Process is Antiquated
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21. Expense Reporting Inefficiencies
Expense Reporting Around the World:
Practices, Pain Points, and Productivity, GBTA, 2015
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minutes to complete
one expense report
up to 23 minutes to correct
expense reports
errors
15-22 average number
of reports with
errors
22%
22. Methods for Managing T&E Reporting
2018 Expense Management Trends Report, Certify, Inc.
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10%
33%
6%
35%
17%
0 5 10 15 20 25 30 35
Pen and paper
Microsoft
Excel/spreadsheets
Homegrown solution
Web-based solution
ERP/accounting
package (Oracle, SAP, etc)
24. [VALU
E]
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
T&E Systems by Company Size
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MANUAL SYSTEMS:
29% enterprise | 60% small businesses
2018 Expense Management Trends Report, Certify, Inc.
25. Print
spreadsheets,
tape or staple
receipts and
make copiesEnter expenses in Excel
with category, vendor,
dates, etc.
And then …
wait
Gather receipts,
itineraries and
write down non-
receipt items
Sign report/date
report and
present or mail to
manager
Employees
Manual Expense Reporting Process
AccountantsManagers
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26. Check expenses for
receipts, review for
out-of-policy items,
etc.
Receive reports for all
employees at different
times during the
month/quarter
If errors, return report
to employee to start
over; wait for
resubmission
Sign/approve
reports and route
to the next
manager or to AP
Manual Expense Reporting Process
Employees AccountantsManagers
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27. Manually enter data
from accounting
software to payroll for
reimbursementManually enter
expense data
into accounting
software
Check for receipts,
manager approvals,
out-of-policy items,
etc.
Receive reports for all
employees at different
times of the
month/quarter
Match receipts
with line-items,
verify all
charges, dates
and vendors
Manual Expense Reporting Process
Employees AccountantsManagers
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28. Leading frustrations for T&E program administrators:
Top Expense Management Pain Points
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2016-2018 Expense Management Trends Report, Certify, Inc.
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%
29. Simplifying the expense
reporting process is the #1
reason companies turn to T&E
automation
2018 Expense Management Trends Report, Certify, Inc.
30. Polling Question 2
a) Manual / Excel
b) ERP system
c) Automated system
d) Homegrown solution
What is your current process for expense
management?
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31. Click to add text
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#SageSummit |@TwitterHandle (Optional) 31
Calculating the ROI of
T&E Expense Spending
32. • For every dollar invested in business travel, U.S. companies generated $9.50
in revenue and $2.90 in profit
• Comprehensive 18-year econometric analysis across 14 industries by Oxford
Economics and U.S. Travel Association
+ + +
The ROI of T&E Expense Spending
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33. The Value of Business Travel: The Travelers’ Perspective,
Carlson Wagonlit Travel, 2014
Purpose of business travel:
Top Reasons for Business Travel
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31%
21%
13%
11%
10%
7%
7%
Client or prospect meeting
Team related meeting
Training and development
Events and conferences
Operations / quality control
R&D / innovation
Supplier meeting
34. 3
4
5
6
7
7
8
11
13
15
21
0 5 10 15 20 25
The U.S. Business Travel Industry: Business Travel’s Impact on
Jobs and the U.S. Economy in 2016, GBTA
Business development
Client service delivery
Increased collaboration
Strategic alignment
Innovation
Quality control
People development
Employee engagement
Self-development
Networking
Other
Reported Outcomes and Benefits
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%
%
%
%
%
%
%
%
%
%
%
35. The Return on Investment of U.S. Business Travel,
Oxford Economics/U.S. Travel Association, 2009
What does business travel mean for your bottom line?
Trip Type % Of Travel Budget
(Average)
Return on $1 of
Investment
(Median of Responses)
Customer Meetings 34% $15 – 19.99
Conferences 10% $4 – 5.99
Trade Shows 10% $4 – 5.99
Incentives 5% $4+
All Other 42% N/A
Executive Perspective on ROI
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36. Lower processing costs is
the top driver of T&E
investments for 49% of all
companies
Forrester Research 2016
38. 31%
16%
9%
Under $7 per report $10−$20 per report
$25 or more per report We do not track these costs
38
2017 Expense Management Trends Report, Certify, Inc.
44%
do not track expense
report processing costs
Self-Reported Processing Costs
39. • 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
?
The Hidden Costs of Expense Reporting
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40. The Association of Certified Fraud Examiners reports that:
• 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)
T&E Fraud
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41. 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 (%)
Calculating Costs and Lost Opportunity
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42. Polling Question 3
a) Decision maker
b) Influencer
c) Researcher / Analyst
d) I have no role
What is your role in expense
management?
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43. Click to add text
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#SageSummit |@TwitterHandle (Optional) 43
The ROI of T&E
Expense Reporting
44. 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-complaint travel/expenses
#5 Inconsistent and lengthy reimbursement cycles
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2018 Expense Management Trends Report, Certify, Inc.
45. Simplicity/Ease of Use: Improve on-time submission,
compliance with policy, and increase employee adoption
Automated Features: Improve expense report process
efficiency and reduce overhead costs
Accessible Anywhere: OCR receipt capture and anywhere
accessibility make T&E easy for employees
Integration Services: Connect systems to reduce errors and
manual data entry; ERP; HR; corporate/credit card feeds
Reporting Analytics: Greater visibility into process and
spending by category, department, employee, etc.
Must-Have Expense Reporting Features
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2018 Expense Management Trends Report, Certify, Inc.
47. Improved efficiency/expense reporting process 58%
Reduction in processing costs (paper, postage, storage etc.) 53%
Travel booking control (pre-trip authorization, etc.) 23%
Mobile accessibility 29%
Elimination of payment for duplicate expenses 22%
Reduction in overhead/staffing requirements 23%
More accurate mileage tracking/mapping 17%
Reduction in fraudulent expenses 22%
Increased employee productivity 27%
How ROI was generated:
2018 Expense Management Trends Report, Certify, Inc.
Top Features/Sources of ROI
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48. 2018 Expense Management Trends Report, Certify, Inc.
Improved efficiency/expense reporting process 58%
Reduction in processing costs (paper, postage, storage etc.) 53%
Travel booking control (pre-trip authorization, etc.) 23%
Mobile accessibility 29%
Elimination of payment for duplicate expenses 22%
Reduction in overhead/staffing requirements 23%
More accurate mileage tracking/mapping 17%
Reduction in fraudulent expenses 22%
Increased employee productivity 27%
How ROI was generated:
Top Features/Sources of ROI
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49. 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)
$
Control Spending Before It’s Expensed
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50. • Acceptable/approved classes of service
• Ancillary fees (upgrades, boarding, airline clubs, etc.)
• Preferred travel vendors for air, hotel and car rental
• Advance purchase and connecting flight requirements
• Category spending limits (i.e. amount not to exceed)
• Changing or cancelling flights (track/apply unused tickets)
Controllable Costs via Integrated Travel
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51. Companies that track and apply
unused tickets can save 5-8% of
total annual travel budget
2015 GBTA Ancillary Fee Handbook
53. T&E Automation benefits the traveler, AP and most importantly the
bottom line:
• Compliance to company travel policy
• Compliance to laws and regulations
• Enhanced visibility for data analysis to negotiate preferred pricing
• Data analysis to audit spend for compliance & reasonability check
T&E Automation
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54. T&E Automation makes it easier to analyze, set goals, track
and monitor KPI’s proving the ROI:
• Process savings
• Savings negotiated with travel providers
• Percentage compliance/exceptions with travel policies
• Identify high and low spenders
• Track trips that were approved prior to travel
• Capture receipts from non-preferred suppliers
• Identify what was purchased from non-preferred and based on
volume/dollars determine if it should be negotiated
T&E Automation: Key Performance Indicators
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55. Polling Question 4
a) Too time consuming
b) Lack of executive level support in moving forward
with the process
c) No available budget
d) We don’t feel we need to make the switch yet
e) We have already made the switch to an automated
expense management software
What’s the primary reason you haven’t made the switch
to an automated expense management software?
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58. 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.app2p.com.
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