2019 Certify T&E Management Trends Webinar

2019 T&E Trends
Technology, Collaboration, and Innovation
Ernie Humphrey, CTP

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Today’s Presenter
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.

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About Certify
• Integrated, automated solutions for travel, expense, accounts
payable invoice and purchasing
• 64 languages, 140+ currencies, clients in 80 countries
• #1 G2 Crowd for user satisfaction in expense management
software (2014-2019) and Momentum Grid leader in expense
management software (2018)
• PC Magazine Editors’ Choice for best expense tracking software
(2015-2019)
• Processing expenses and receipts valued at over
$3.3 billion annually

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Webinar Info & CPE Credits
• CPE Credit: To claim your CPE credit, please answer all polling questions
and remain online for the duration of the webinar.
• Questions about CPE Credits? Your credit will be emailed to you within
three business days. If you have questions, please email Mike Lamberti
at mlamberti@certify.com
• Join the Discussion: We will have a Q&A at the end of the webinar, and
will email you a survey once the webinar concludes.

Learning Objectives
After attending this event, you will be able to:
1. Identify specific opportunities to lower T&E processing costs at your company.
2. Describe ways to positively impact productivity within and beyond accounts payable
at your company.
3. Give examples of ways to mitigate T&E-related fraud exposure.
4. Recognize current and emerging trends in T&E best practices, including the evolving
role of technology.

Our Agenda
• Why T&E Matters
• The 2019 Travel and Expense Management Trends Report: Key Findings
• The Challenges of T&E Management
• The Root Causes of Ineffective T&E Management
• The Role of Technology in T&E Management
• Key Implications and Recommendations

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The Scale of T&E
$1.41 trillion
spent globally on business travel
activity in 2018
$304 billion
spent on business travel in the
United States in 2018
90%
of all business travel generated in
North America ($338 billion) was
spent on domestic trips in 2018
Source: GBTA BTI™ Outlook – Annual Global Report & Forecast 2019

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The Scale of T&E
What does business travel mean
for your bottom line?
Comprehensive 18-year
econometric analysis across 14
industries by Oxford Economics
and U.S. Travel Association.
For every dollar invested in
business travel, U.S. companies
generated $9.50 in revenue and
$2.90 in profit.
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
Source: Oxford Economics and U.S. Travel Association

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T&E Done Right
• Lowers expense report processing costs
• Impacts the productivity of travelers
• Impacts the productivity of managers, accountants, and treasury staff
• Improves working capital management
• Impacts the bottom line on an ongoing basis

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Polling Question 1
How would you characterize the level of visibility
your company has relative to T&E spend?
a) Non-existent
b) Minimal at best
c) Okay, but we have major blind spots
d) Good, but we could do better
e) Ideal

2019 Travel and Expense
Management Trends Report
Key Findings

About the Research
585 finance professionals from outside the Certify customer base:
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%
2019 Travel & Expense Management Trends Report, Certify, Inc
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Key Survey Themes
1. Many organizations do not understand the challenges they
face in effective T&E management.
2. Technology immaturity is an inherent barrier to effective T&E
management in many organizations.
3. Technology is the key to addressing areas in T&E management
that need improvement.
4. Companies view the value offered by expense management
systems through the lens of ease of use driven, by mobile
functionality.
5. Companies that invest in cloud-based expense management
systems are seeing a positive ROI for that investment.

T&E Expense Management
Key Challenges

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Areas of T&E Management Most Critical to Improve in 2019
25%
14%
12%
11% 11%
8% 8%
Expense management
process efficiency
Transparency/
visibility/ reporting
related to spend
Corporate travel policy
compliance
Audit and reporting Travel booking Integration between
business systems
Employee
reimbursement times

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Controlling T&E Spend—The Budget
How does your organization set T&E policy category amounts or maximums for meals, hotel, and airfare?
2019 Travel & Expense Management Trends Report, Certify, Inc.
28%
25% 25%
13%
9%
0%
5%
10%
15%
20%
25%
30%
Follow US GSA per diem rates Based on internal historical
spending trends
Determined by annual
budgeting process
We do not have policy
maximums
Other

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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

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Controlling T&E Spend—T&E Policy IQ
72% of companies 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”.

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Polling Question 2
How well would you describe your travelers and
managers knowledge of your company’s T&E policy?
a) Poor
b) Decent
c) Good
d) Great
e) I don’t know

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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
OurT&E system
automatically flags out of
policy expenses
Responsibility of
employees
Manually, only reviewing
expenses with a high
value
OurT&E policy is not
enforced
I don't know

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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

Nearly half (46%) of organizations
report less than a 75% rate of
compliance with their T&E policy.
And 26% of enterprise-sized organizations do not know what
percentage of submitted expenses are T&E policy compliant.

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Controlling Expense Report Processing Costs
What is the average cost to process a single expense report in your organization?
46%
29%
11%
8% 6%
We do not track these costs Under $10 $11-$20 $31 or more $21-$30

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Polling Question 3
What is the primary system your
organization uses to manage T&E?
a) Spreadsheets/Microsoft Excel
b) ERP system
c) Homegrown system
d) Dedicated expense management system
(Certify, Chrome River, Concur, etc.)
e) I don’t know

The Root Causes of
Ineffective T&E Management

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Root Cause #1: Poor Visibility
1. Poor visibility into T&E data.
43% of organizations overall still manage
T&E manually. This means little to no
reporting functionality to identify trends
and areas of concern.

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Expense Management Systems in Use
Enterprise Mid-Market Small Business
Dedicated solution ERP/accounting package
(Oracle, SAP, etc.)
Microsoft Excel/spreadsheets Pen and paper Homegrown
solution
46%
27%
16%
2%
9%
32%
24%
33%
4%
7%
32%
15%
38%
10%
5%
27% Manual System 44% Manual System 53% Manual System

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Root Cause #2: Lack of Control
2. Lack of control over T&E spending.
Only 72% of organizations have a formal T&E
policy in place.
• Of these, 58% report that their travelers have, at
best, a “decent” understanding of their T&E policies.
• 20% of companies that have a T&E policy in place
report that the understanding of their T&E policy by
their travelers is “minimal at best”.

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Root Cause #2: Lack of Control
• 46% of organizations report less than a 75% rate of compliance
with T&E policy—while 26% of enterprise-sized companies
report they do not know what percentage of submitted
expenses are T&E policy compliant.
• Only 27% of organizations have a system that automatically
flags out of policy expenses.
• 13% of organizations do not have spending policy limits.

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Root Cause #3: The Need to Reduce Costs
3. The need to reduce expense report processing costs.
Among companies that invested or are
planning to invest in T&E technology, 82%
identified one of the main reasons for moving
to a dedicated system as “simplifying the
expense reporting process

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Expense Report Processing Costs
Biggest expense management pain points
53%
41%
35%
27% 26% 24%
0%
10%
20%
30%
40%
50%
60%
Issues with receipts Late reports Time spent managing
reports
Errors on expense reports Reconciling the data Reviewing for policy
violations

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Expense Reporting Pain Points
Employees AccountantsManagers
Gather receipts,
itineraries, and write
down non-receipt items
Enter expenses in
Excel with category,
vendor, dates, etc.
Print spreadsheets,
tape or staple receipts,
and make copies
Sign/date report,
present or mail to
manager
And then…wait

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Receive reports for all
employees at different
times during the
month/quarter
Check expenses for
receipts, review for out-
of-policy items, etc.
If errors exist, return report
to employee to start over;
wait for resubmission
Sign/approve reports
and route to the next
manager or to AP

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Receive reports for all
employees at different times
of the month/quarter
Check for receipts,
manager approvals, out-
of-policy items, etc.
Match receipts with line-
items, verify all charges,
dates, and vendors
Manually enter
expense data into
accounting software
Manually enter data
from accounting
software to payroll for
reimbursement

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Polling Question 4
What is the average cost to process a single
expense report in your organization?
a) Under $10
b) $11-$20
c) $21-$30
d) $31 or more
e) We do not track these costs

T&E Management
The Role of Technology

Top 3 Drivers of ROI From Dedicated Solutions
Process Efficiency Improved Productivity Increased Policy Compliance
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Drivers of Technology Investment
2019 Expense Management Trends Report, Certify, Inc.
Main reasons behind moving to a dedicated expense management solution
82%
35% 34% 32% 29%
19%
10%
6% 3%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Simplifying the
expense
reporting process
Providing an
expense system
available
anywhere
(mobile, global)
Implroving travel
policy compliance
Reimburse
employees faster
Improve
reporting and
analytics around
T&E spend
Integrating
multiple finance
& HR systems
into one system
Increase
frequency of
expense reports
being submitted
Improve VAT
recovery
Other

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Drivers of Technology Investment
Most important features when selecting a T&E solution
62%
60%
43%
35%
34%
32%
25%
Expense management automation
Simplicity/ ease of use for employees
Integration with HR/ finance systems
Rapid implementation time
Mobile applications and accessibility
Reporting and insight into spend
Audit and reporting

Sources of Technology ROI
Features/sources of T&E technology ROI
63%
35%
31%
30%
26%
21%
21%
20%
20%
0% 10% 20% 30% 40% 50% 60% 70%
Improved process efficiency
Reduction in processing costs
Mobile accessibility
Elimination of duplicate payments
Reduction in overhead costs
Travel booking control
More accurate mileage tracking
Reduction in fraudulent expenses
Increased employee productivity
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Key Implications
& Recommendations

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5 Key Implications
1. Organizations that invest in dedicated expense management systems are seeing an ROI
for that investment. That means the right technology and the right technology partner
impact the bottom line of companies that invest in T&E done right.
2. Organizations view the value offered by expense management systems through the
lens of ease of use, driven by mobile functionality.
3. Technology is key to addressing areas in T&E management that need improvement.
Organizations not currently using a dedicated expense management solution would do
well to look at the business case for investing in the right solution.

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5 Key Implications
4. Many organizations do not understand the challenges they face in
effective T&E management. Map out all processes, people, and
technology involved in creating and processing an expense report end-to-
end, and build up the estimated cost to process an expense report.
5. Technology immaturity is an inherent barriers to effective T&E
management at most companies. Organizations would do well to invest
in technology that unlocks the value of T&E done right.

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5 Recommendations for Action
1. Map out all processes, people and technology involved in creating and processing an
expense report end to end.
2. Estimate the cost to process an expense report.
3. Invest in understanding the pain points of your expense reporting and
reimbursement process.
4. Invest in creating and enforcing an effective T&E policy.
5. Invest in technology that makes it easy for travelers to create expense reports and
facilitates straight-through processing from submission to reimbursement.

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Helpful Resources
Visit our Content Hub to download a copy of the 2019 T&E Trends Report, and explore
other helpful content like case studies, whitepapers, and more.
Content Hub: https://www.certify.com/WhitepapersAndMore.aspx

2019 Certify T&E Management Trends Webinar

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