The ROI of T&E: How Expense Reporting Pays for Itself | June 22, 2017

The ROI of T&E: How Expense
Reporting Pays for Itself
Mark Brousseau with Christopher Pless
Presenter
June 22, 2017 Sponsored by:

#InsideTalk
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Join the Conversation

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Moderator
Moderator Photo
Moderator Name
Title
Company

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Today’s Presenters
Christopher Pless
AVP/Senior Accountant
Crestmark Bank
Mark Brousseau
Industry-leading speaker,
analyst and writer
Brousseau & Associates

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Upon completing this webinar, you will be able to:
1. Leverage 2017 T&E expense spending benchmarks to
better understand your company’s spend
2. Identify common expense reporting pain points and
goals for improvement
3. Project your company’s expense report processing cost
based on industry averages
4. Understand the system features that help 70% of
companies achieve full ROI in 1 year or less
Learning Objectives

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• Industry-leading, first fully automated global travel and
expense management system
• #1 highest rated expense management software for
user satisfaction on G2 Crowd
• PC Magazine Editors’ Choice for best expense
tracking software of 2015−2017
• Processing nearly 40 million expenses and
receipts,$50 billion in transactions for 2016
About Certify

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Click to add text
Click to add title
#SageSummit |@TwitterHandle (Optional) 8
2017 T&E Spending and
Expense Category Benchmarks

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

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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
Business Investment in T&E

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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%
Certify SpendSmart Report, Q4 2016
Airfar
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Lodgi
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Ga
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Tax
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Cell
Phon
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Rent
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How the Expense Budget is Spent

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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%
Airfar
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Lodgi
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Ga
s
Tax
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Cell
Phon
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Car
Rent
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Shippi
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Toll
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Parkin
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$98.74
DAILY
MEAL COST
2016
Certify SpendSmart Report, Q4 2016
2016 Business Travel News Corporate Travel Index
How the Expense Budget is Spent
Suppli
es

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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%
Certify SpendSmart Report, Q4 2016-2017
Benchmark Spending by Category

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

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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 2016?
Polling Question 1

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Please position this slide within the slide deck,
to indicate when you plan to review the group
poll results for question #1.
Upon arriving on this slide, the group poll
results will automatically display for the
audience, and you may then review the results
and /or tie them into your presentation.
Polling Question 1: Results

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Click to add text
Click to add title
Inefficiencies in T&E
Expense Reporting

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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
%
Expense Reporting Inefficiencies

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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
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Methods for Managing T&E Expense

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SMALL
BUSINESS
MID-SIZE
BUSINESS ENTERPRISE
T&E Systems by Company Size

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SMALL
BUSINESS
MID-SIZE
BUSINESS ENTERPRISE
MANUAL PROCESS:
20% enterprise • 64% small businesses
T&E Systems by Company Size

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Print spreadsheets,
tape or staple
receipts and make
copies
Enter 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 AccountantsManagers
Manual Expense Reporting Process

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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

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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

Simplifying the expense reporting
process is the #1 reason companies
turn to T&E automation

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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

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Click to add text
Click to add title
Calculating the ROI of
T&E Expense Spending

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• 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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Client or Prospect Meeting
31%
Team Related Meeting
21%
Training and Development
13%
Events and Conferences
11%
Operations/Quality Control
10%
R&D/Innovation
7%
Supplier Meeting
7%
The Value of Business Travel: The travelers’ perspective, Carlson Wagonlit Travel, 2014
Reported outcomes:
Business
Development
Client Service
Delivery
Increased Collaboration
Strategic Alignment
Innovation
Quality
Control
People
Development
Employee
Engagement
Self-development
Networking
Other
Top Reasons for Travel & Outcomes
Purpose of business travel:

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

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Cost to Process One Expense Report
44%
do not track report
processing costs

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• 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
?

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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 Cost & Lost Opportunity

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Click to add text
Click to add title
The ROI of T&E
Expense Reporting

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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
Top T&E Pressures to Improve

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Automated Features: Improve expense report process
efficiency and reduce overhead costs
Mobile Application: OCR receipt capture and anywhere
accessibility make T&E easy for employees
Compliance Tools: Enforce travel policy and control
spending via hard and soft policy controls
Integration Services: Connect systems to reduce errors
and manual data entry; corporate/credit card feeds
Reporting Analytics: Greater visibility into process and
spending by category, department, employee, etc.
Certify Annual Travel & Expense Management Survey 2017
Must-Have Expense System Features

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Automation Drives ROI

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Top Features/Sources of ROI
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%
How ROI was generated:

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Top Features/Sources of ROI
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%
How ROI was generated:

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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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Controllable Costs via Integrated Travel
• 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)

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Companies that track and apply
unused tickets can save 5-8% of
total annual travel budget
2015 GBTA Ancillary Fee Handbook

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Automation Gets Results

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Questions & Answers
Use the Q & A Panel to send your questions to our panelists.
Moderator Name
Title
IMA
Moderator Photo
Mark Brousseau
analyst and writer
Christopher Pless
Crestmark Bank

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Thanks to Our Presenters
Mark Brousseau
analyst and writer
Christopher Pless
Crestmark Bank

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a) Under $10
b) Between $10 and $15
c) $20 or more
d) Not applicable
For every dollar your company spends on T&E,
what is your estimated ROI?
Polling Question 3

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Final Reminders

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The ROI of T&E: How Expense Reporting Pays for Itself | June 22, 2017

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