When it comes to company expense management priorities, is your team prepared for the year ahead? Join us and find out what more than 600 finance and accounting professionals identified as their top employee-initiated and travel and entertainment expense challenges, pain points and pressures to succeed in 2017. You’ll also learn the strategies and technologies they’re using to get ahead in 2018 by streamlining inefficient processes, reducing hassles, and saving time and money over spreadsheets and manual paper-based reporting programs.

1. Expense Management in 2018:
Planning for Success
December 14, 2017

2. 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.
Ernie Humphrey
Chief Executive Officer
Featured Speaker

3. • 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 nearly 40 million expenses and receipts valued
at $50+ billion in 2017
About Certify

4. 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 get to your questions during the Q&A/panel discussion at the
end of the event. If we do not get to your question, we will follow up
with you directly.

5. Learning Objectives
• Goals and priorities for managing expenses and reimbursement
• T&E expense spending benchmarks and report processing costs
• Common expense reporting pain points and goals for improvement
• Accounting professionals’ “must-have” expense system features
• How to assess needs and secure investment for expense technology
Attending this event will help you understand:

6. Why Invest in T&E Spending

7. • 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
ROI of T&E Expense Spending

8. 3
4
5
6
7
7
8
11
13
15
21
0 5 10 15 20 25
The Value of Business Travel: The travelers’ perspective, Carlson Wagonlit Travel, 2014
Business Development
Client Service Delivery
Increased Collaboration
Strategic Alignment
Innovation
Quality Control
People Development
Employee Engagement
Self-development
Networking
Other
%
%
%
%
%
%
%
%
%
%
%
Reported Outcomes and Benefits

9. Certify Annual Trends Study 2017
600+ accounting professionals from outside
the Certify customer base:

10. 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
ROI of T&E Expense Spending

11. How Companies Set T&E Budgets
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
Certify Annual Expense Management Trends Report 2017

12. Travel & Entertainment
Expense Spending Benchmarks

13. T&E Spending by U.S. Companies
Global Business Travel Association 2016
$293.1b
2017 travel and entertainment
spending by U.S. companies
+ 3.8%
from the
previous year

14. Business Investment in T&E
6-12%
total annual budget
for T&E expenses
(Aberdeen Group 2014)
PayStream Advisors 2016
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

15. 1. Meals 19%
2. Airfare 15%
3. Lodging 14%
4. Misc. 13%
5. Gas 11%
6. Taxi 9%
7. Cell phone 5%
8. Car rental 5%
9. Supplies 5%
10. Shipping 2%
11. Tolls 1%
12. Parking 1%
How the Expense Budget is Spent
Certify SpendSmart Report, Q4 2016
Meals
Airfare
Lodging
Misc.
Gas
Taxi
Cell
Phone
Car
Rental
Supplies
Shipping Tolls
Parking

16. Polling Question 1
a) Meals
b) Mileage
c) Airfare
d) Other
e) Not sure
As a percent of total spending, what was your
company’s largest expense category in 2016?

17. Meals
Airfare
Lodging
Misc.
Gas
Taxi
Cell
Phone
Car
Rental
Supplies
Shipping Tolls
Parking
1. Meals 19%
2. Airfare 15%
3. Lodging 14%
4. Misc. 13%
5. Gas 11%
6. Taxi 9%
7. Cell phone 5%
8. Car rental 5%
9. Supplies 5%
10. Shipping 2%
11. Tolls 1%
12. Parking 1%
$97.59
DAILY
MEAL COST
2017
Certify SpendSmart Report, Q4 2016
2017 Business Travel News Corporate Travel Index
How the Expense Budget is Spent

18. Category 2016 2017 Difference
Gas $30.32 $29.77 –1.81%
Airfare $274.00 $316.17 +15.39%
Lodging $223.45 $210.19 –5.93%
Car Rental $186.45 $190.74 +2.30%
Cell Phone $92.24 $89.00 –3.51%
Meals $26.06 $27.02 +3.68%
Misc. $55.71 $68.20 +22.41%
Taxi $31.82 $27.90 –12.31%
Benchmark Spending by Category
Certify SpendSmart Report, Q4 2016-2017

19. www.gsa.gov, accessed 1/30/17
2017 U.S. GSA Per Diem Rates
GSA Lodging, Meals & Incidentals for San Francisco, CA
Lodging (per night) Breakfast Lunch Dinner
$267 $17 $18 $31
Incidental -- $5 $5 $5

20. T&E spending ranks as the 2nd
most difficult operating expense
category to control
Forrester Research 2014

21. Expense Management Pain
Points & Pressures to Improve

22. Certify Annual Trends Study 2017
600+ accounting professionals from outside
the Certify customer base:

23. Leading frustrations for T&E program administrators:
Top Expense Management Pain Points
2015 2016 2017
Employees losing paper receipts/submitting without receipts 33% 50% 52%
Employees failure to submit reports on time 39% 45% 51%
Time it takes to reconcile, review and approve reports 38% 38% 36%
Reviewing for policy violations 20% 30% 28%
Errors on expense reports (incorrect codes, amounts, etc.) 23% 28% 26%
Certify Annual Expense Management Trends Report 2017

24. Top T&E Pressures to Improve in 2017
36% Need to reduce expense processing costs
31% Lack of control over T&E spending
31% Poor visibility into travel/expense data
21% Frequent non-complaint travel/expenses
20% Lengthy reimbursement times
Certify Annual Expense Management Trends Report 2017

25. $6.85
fully automated
$17.31
semi-automated
$26.63
manual process
PayStream Advisors 2016
Industry average cost to process ONE expense report:
Expense Report Processing Costs

26. Lower processing costs is the top
driver of T&E investments for 49%
of all companies
Forrester Research 2016

27. • 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
?
Expense Reporting’s Hidden Costs

28. 31%
16%
9%
Under $7 per report $10−$20 per report
$25 or more per report We do not track these costs
Certify Annual Expense Management Trends Report 2017
44%
do not track expense
report processing costs
The Trouble with Tracking

29. Inefficiencies in T&E
Expense Reporting

30. Expense Reporting Inefficiencies
Expense Reporting Around the World: Practices, Pain Points, and Productivity, GBTA, 2015
up to
minutes to complete
one expense report
minutes to correct
expense reports
errors
average number
of reports with
errors
23 15-22
22%

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

32. 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
Employees AccountantsManagers
Manual Expense Reporting Process

33. 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
Employees AccountantsManagers
Manual Expense Reporting Process

34. 44
37
35
37
29
32
37
34
5
7
5 6
4 4
8
6
18 19
15
17
2014 2015 2016 2017
Methods for Managing T&E Reporting
Consistent mix of expense management systems:
Certify Annual Expense Management Trends Report 2017
Cloud/web-based
Excel
spreadsheets
ERP system
Homegrown solution
Pen and paper

35. SMALL
BUSINESS
MID-SIZE
BUSINESS ENTERPRISE
33%
37%
8%
6%
16%
56%
10%
2%
8%
24%24%
55%
7%
2%
12%
Web-based solution (Concur, IBM, etc.)
Microsoft Excel/spreadsheets
Pen and paper
Homegrown solution
ERP/accounting package (Oracle, SAP, etc.)
T&E Systems by Company Size
Certify Annual Expense Management Trends Report 2017

36. SMALL
BUSINESS
MID-SIZE
BUSINESS ENTERPRISE
33%
37%
8%
6%
16%
56%
10%
2%
8%
24%24%
55%
7%
2%
12%
Web-based solution (Concur, IBM, etc.)
Microsoft Excel/spreadsheets
Pen and paper
Homegrown solution
ERP/accounting package (Oracle, SAP, etc.)
AUTOMATED SYSTEMS:
80% enterprise • 36% small businesses
T&E Systems by Company Size
Certify Annual Expense Management Trends Report 2017

37. 27%
27%
30%
40%
59%
0% 10% 20% 30% 40% 50% 60% 70%
Reimburse employees faster
Improve employee compliance rates to corporate
policy
Gain reporting and analytics around T&E spend
Provide system accessibly from anywhere
(online, mobile)
Simplify process for employees and managers
Driving Force Behind T&E Automation
Certify Annual Travel & Expense Management Survey 2017

38. Polling Question 2
a) Paper-based/spreadsheets
b) 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 reporting?

39. Strategies to Improve
Expense Management in 2018

40. 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/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: Greater visibility into process and spending by
category, department, employee, etc.
Certify Annual Travel & Expense Management Survey 2017

41. Automation Gets Results

42. Mobile Makes T&E Easy for Employees
• 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 features for mobile T&E reporting:
Expedia/Egencia Mobile Index 2014
97% of business travelers carry at
least one mobile device
2016

43. Automate T&E Policy Compliance
75%
manually review each
expense report report
for policy violations
Certify Annual Expense Management Trends Report 2017
79%
of all companies report
having a written
T&E policy in place
• Set hard/soft policy controls: spending caps, report requirements
(i.e. meal attendees), vendor preference
• Eliminate duplicate receipts/expenses: automatically identify
duplicate receipts, flag out-of-policy expenses
• Manage expense reporting on time: automatic report build reports,
employees/manager notifications

44. Integrate Systems, Maximize Efficiency
• 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

45. Reporting Visibility Delivers Control
Additional analytics for GL dimensions, pending reports, approval actions,
processed reports, multiple input parameters and more
Expenses By Category
shows totals for expense
categories and employees
simultaneously
Meals Attendees
displays group meals
expenses with detailed and
free text attendee information
Mileage By Employee
captures personal automobile
usage including subtotals by
employee
Expense Policy Review
shows processed and in-progress
expenses with policy violations
and other potential issues

46. Improving visibility into spend is a
driving force behind the switch to
automation for 30% of companies
Certify Annual Expense Management Trends Report 2017

47. Polling Question 3
a) Reducing process and workflow inefficiencies
b) Tighter controls for employee T&E spending
c) Lowering expense report processing costs
d) Increasing travel policy compliance
What is your organization’s top area for
T&E improvement in the year ahead?

48. Building a Case for
Expense Report Automation

49. Building a Case For Automation
• How is the company currently managing T&E and employee-
initiated expenses?
• What are the challenges and requirements now, and how do we
scale for the future?
• Who are the company key stakeholders, influencers and
everyday users?
• What are the some of the best tools for evaluating needs and
assessing vendors?
• How can I demonstrate return on investment, and what kind of
ROI should I expect?
Winning support and investment is no easy task :

50. Certify Annual Travel & Expense Management Survey 2017
Automation Delivers ROI

51. Improved efficiency/expense reporting process 57%
Reduction in processing costs (paper, postage, storage etc.) 48%
Travel booking control (pre-trip authorization, etc.) 22%
Mobile accessibility 22%
Elimination of payment for duplicate expenses 21%
Reduction in overhead/staffing requirements 18%
More accurate mileage tracking/mapping 19%
Reduction in fraudulent expenses 17%
Increased employee productivity 21%
How ROI was generated:
Certify Annual Travel & Expense Management Survey 2017
Top Sources/Features for ROI

52. Complimentary eBook from Certify
http://bit.ly/2AvaRfj

53. Closing Thoughts
• Review your company’s T&E policies; if you do not have them, create them
• Improve the travel IQ of employees and take measures to enforce policies
• Arm travelers with better technologies to simplify expense reporting
• Automate key components of the expense management process
• Benchmark company T&E spending regularly
• Leverage analytics to improve intelligence and data
Setting the Foundation for Effective T&E Expense Management

54. Closing Thoughts
• Visibility
• Benchmarking
• Control
• Processing Cost Mitigation
The pillars of effective T&E expense management
The dimensions of T&E expense automation value:
• Wasteful & Fraudulent Spend Mitigation
• Processing Cost Mitigation
• Improved Employee Productivity
• Improved Working Capital Management

55. Additional Resources
• 2017 Expense Management Trends & Benchmarks White Paper
• T&E Expense Management Customer Success Stories
• Expense Management Cost Calculator
• Certify SpendSmart TM Reports

56. Questions?

57. Thank You