Get the latest insights into today’s business travel trends and how they’re driving the purchase decisions and preferences of your employees on the road. You’ll also see survey results from more than 600 companies with insight into the tools and best practices they’re using to manage the expense reporting and reimbursement process.

1. Spend and Control 2017:
Business Travel and Expense Technology Trends
November 29, 2017

2. 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
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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.

3. • Most expensed and top rated travel vendors and brands for 2017
• Benchmark costs and trends for employee T&E spending by expense category
• Why lost receipts is the #1 T&E challenge for 52% of companies (and how to address it)
• The “must-have” expense reporting system features as rated by accounting professionals
• Best practices and tools to increase visibility control over employee spending
Attending this event will help you understand:
Learning Objectives

4. 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
Today’s Moderator

5. • Automated solutions for travel, expense and AP 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 2016
• Processing nearly 40 million expenses and receipts
valued at $50 billion in 2016
About Certify

6. Click to add text
Click to add title
#SageSummit |@TwitterHandle (Optional) 6
2017 Business Travel Spending and
Expense Category Benchmarks

7. Why Invest in T&E Spending?
Client Meetings
Team Building
Staff Training
Events, Conferences & Trade Shows
New Business
Innovation Supplier Negotiations
Research & Development
Professional Development
Recruitment
Operations Planning

8. 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

9. Budgeting for 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

10. 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
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%

11. 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

12. 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

13. 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

14. • Analysis of U.S. business traveler spending processed by the Certify system
• Published each quarter and at the end of every year since April 2013
• Most expensed and top rated by category including transaction averages
• Q3 2017 data included more than 10 million expenses and receipts
Business Traveler Spending
CERTIFY SPENDSMART™
QUARTERLY REPORT

15. Certify SpendSmart Report, Q3 2017
Most Expensed Restaurants
Vendor
Expense
Percentage
Average Cost
STARBUCKS 4.95% $12.20
MCDONALD'S 3.02% $9.19
PANERA BREAD 1.68% $44.08
SUBWAY 1.53% $18.07
CHICK-FIL-A 1.42% $25.02

16. Most Expensed Airlines
Vendor
Expense
Percentage
Average Cost
DELTA 20.98% $419.47
AMERICAN AIRLINES 16.95% $333.44
SOUTHWEST AIRLINES 15.37% $277.23
UNITED AIRLINES 14.12% $393.10
ALASKA AIRLINES 1.58% $282.32
Certify SpendSmart Report, Q3 2017

17. Most Expensed Hotels
Vendor
Expense
Percentage
Average Cost
HAMPTON INN 9.20% $248.13
MARRIOTT 8.18% $257.02
COURTYARD BY
MARRIOTT
7.66% $185.39
HOLIDAY INN EXPRESS 4.93% $244.39
HILTON GARDEN INN 4.62% $227.75
Certify SpendSmart Report, Q3 2017

18. Most Expensed Car Rental
Vendor
Expense
Percentage
Average Cost
NATIONAL CAR
RENTAL
27.22% $193.05
ENTERPRISE
RENT-A-CAR
15.82% $208.51
HERTZ 13.45% $209.79
AVIS CAR RENTAL 13.01% $180.53
BUDGET CAR RENTAL 4.27% $202.83
Certify SpendSmart Report, Q3 2017

19. Uber was the most expensed travel
vendor of any category for Q3 2017;
more than double the transactions
of second place Starbucks
Certify SpendSmart Report for Q3 2017

20. 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?
Polling Question 1

21. Click to add text
Click to add title
#SageSummit |@TwitterHandle (Optional) 21
Inefficiencies in T&E
Expense Reporting

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

23. Leading frustrations for T&E program administrators:
Certify Annual Expense Management Trends Report 2015-2017
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%
Top Expense Management Pain Points

24. 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

25. 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

26. 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
Certify Annual Expense Management Trends Report 2017
T&E Systems by Company Size

27. 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 errors
average number
of reports with
errors
23 15-22
22%

28. 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

29. 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

30. 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

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

32. 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?
Polling Question 2

33. Click to add text
Click to add title
#SageSummit |@TwitterHandle (Optional) 33
How Much Is Expense Reporting
Costing Your Company?

34. $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

35. 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 Costs

36. • 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

37. • Mischaracterized expenses (disguising personal expenses)
• Overstatement of actual expense (altering receipts)
• Fictitious expenses (counterfeit receipts)
• Multiple reimbursements (submitting duplicate expenses)
Most employees do the right thing, while others look for
system and process vulnerabilities:
T&E Fraud is All Too Common

38. Expense reimbursement fraud
accounts for nearly 14% of all asset
misappropriation with an average
median loss of $40,000 per scheme
Association of Certified Fraud Examiners 2016

39. T&E Policy Compliance
79%of all companies
report having a written
T&E policy in place
75%manually review each
expense report report
for policy violations
Certify Annual Expense Management Trends Report 2017

40. 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?
Polling Question 3

41. Click to add text
Click to add title
#SageSummit |@TwitterHandle (Optional) 41
Improving T&E
Expense Reporting

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

43. 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

44. Automated Functionality: 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 Tools: Duplicate receipts/expenses, category
spending limits, automatic notification of violations
Integration Services: Accounting software, general ledger,
HRIS, CRM, ERP, ACH direct deposit
Reporting Analytics: Greater visibility into process and
spending by category, department, employee, etc.
Certify Annual Travel & Expense Management Survey 2017
Must-Have Expense Reporting Features

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

46. 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
% reporting

47. 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
% reporting
✓
✓
✓

48. Automation Gets Results

49. Questions?

50. 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:

51. Additional Resources
• 2017 Expense Management Trends & Benchmarks White Paper
• Certify SpendSmart TM Benchmark Calculator
• Expense Management Cost Calculator
• Certify SpendSmart TM Reports

52. Thank You