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2017 Expense Management
Trends and T&E Spending
Benchmarks
Mark Brousseau
Presenter
April 26, 2017 Sponsored by:
#InsideTalk
Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved.
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Webinar Features and CPE Credit
Asking Questions
Help
CPE Credit Requirements
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Join the Conversation
#InsideTalk
@IMA_News
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Learning Objectives
• Factors contributing to high expense report processing costs
• Top expense management pressures, pain points and areas of opportunity
• Annual budget and benchmark spending by category for T&E expenses
• Finance professionals’ must-have expense reporting features for 2017
• How automation helps to eliminate inefficiency and control costs
Attending this event will help you understand:
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Moderator
Moderator Photo
Moderator Name
Title
Company
#InsideTalk
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Today’s Presenters
Mark Brousseau
Industry leading speaker,
analyst and writer
Brousseau & Associates
Jennifer Steinke
Manager, Corporate Travel & Expense
Dycom Industries, Inc.
#InsideTalk
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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,$10+ billion in transactions for 2016
About Certify
#InsideTalk
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8
Certify Annual Trends Study 2017
600+ accounting professionals from outside
the Certify customer base:
#InsideTalk
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9
Benchmark Averages for
T&E Expense Spending
#InsideTalk
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T&E Spending by U.S. Companies
1. Global Business Travel Association 2016
$293.1b
2017 travel and entertainment
spending by U.S. companies
+ 3.8%
from the
previous year
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11
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
#InsideTalk
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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%
How the Expense Budget is Spent
Certify SpendSmart Report, Q4 2016
Meals
Airfare
Lodging
Misc.
Gas
Taxi
Cell
Phone
Car
Rental
Supplies
ShippingTollsParking
#InsideTalk
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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%
Meals
Airfare
Lodging
Misc.
Gas
Taxi
Cell
Phone
Car
Rental
Supplies
ShippingTollsParking
$98.74
DAILY
MEAL COST
2016
Certify SpendSmart Report, Q4 2016
2016 Business Travel News Corporate Travel Index
How the Expense Budget is Spent
#InsideTalk
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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%
Benchmark Spending by Category
Certify SpendSmart Report, Q4 2016-2017
#InsideTalk
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15
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
#InsideTalk
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Certify Annual Travel & Expense Management Survey 2017
Determining Category Spending
We do not have
expense category
limits
26%
Based on internal
historical
spending
23%
Follow U.S. GSA
per rate guidelines
23%
Determined by
annual budgeting
process
21%
Other
7%
T&E spending ranks as the 2nd
most difficult operating expense
category to control
Forrester Research 2014
#InsideTalk
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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 2016?
#InsideTalk
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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 (Placeholder)
#InsideTalk
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Inefficiencies in T&E
Expense Reporting
#InsideTalk
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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%
#InsideTalk
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22
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
Manual Expense Reporting Process
AccountantsManagers
#InsideTalk
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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
Employees AccountantsManagers
Manual Expense Reporting Process
#InsideTalk
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24
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
#InsideTalk
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25
44
37
35
37
29
32
37
34
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
5
#InsideTalk
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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
#InsideTalk
Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved.
27
56%
10%
2%
8%
24%
SMALL
BUSINESS
MID-SIZE
BUSINESS ENTERPRISE
24%
55%
7%
2%
12%
33%
37%
8%
6%
16%
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
#InsideTalk
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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?
#InsideTalk
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29
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 (Placeholder)
The #1 reason companies turn to
automation: simplifying expense
reporting process for employees
and managers (59%)
Certify Annual Expense Management Trends Report 2017
#InsideTalk
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31
Leading frustrations for T&E program administrators:
Top Expense Management Pain Points
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%
#InsideTalk
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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
#InsideTalk
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33
Cost to Process a Single Expense Report
$6.85
fully automated
$17.31
semi-automated
$26.63
manual process
PayStream Advisors 2016
31%
16%
9%
44%
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
#InsideTalk
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T&E Policy Compliance
79%of all companies report
having a written
T&E policy in place
Certify Annual Expense Management Trends Report 2017
75%manually review each
expense report report
for policy violations
#InsideTalk
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7%
39%
41%
15%
26%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
T&E policy is not
enforced
Employee is
responsible
Manager manually
review each expense
Manager manually
review, checking only
high value expenses
T&E system
automatically flags out-
of-policy violations
Policy Enforcement Practices (all companies)
Certify Annual Expense Management Trends Report 2017
An estimated 20% of a total T&E
spend is considered out of policy
for the average company
Aberdeen Group 2012
#InsideTalk
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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
#InsideTalk
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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?
#InsideTalk
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39
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 (Placeholder)
#InsideTalk
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40
How does T&E automation
eliminate inefficiencies and
help control spending?
#InsideTalk
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41
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
#InsideTalk
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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:
Aberdeen Group 2014
90%
best-in-class companies have remote expense
management capabilities via mobile app
2016
#InsideTalk
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97% of business travelers carry at
least one mobile device; 80% used
their smartphone to plan or book
corporate travel in 2014
Expedia/Egencia Mobile Index 2014
#InsideTalk
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44
Control Spending Before It’s Expensed
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)
$
#InsideTalk
Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved.
Companies that track and apply
unused tickets can save 5-8% of
total annual travel budget
2015 GBTA Ancillary Fee Handbook
#InsideTalk
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46
Automate Policy Enforcement
• 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
Instant policy check via the mobile
expense reporting app
#InsideTalk
Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved.
Building travel policy into expense
reporting software can improve
compliance rates as much as 44%
Aberdeen Group 2013
#InsideTalk
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48
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
#InsideTalk
Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved.
AP software and general ledger are
the two most common system
integrations for companies using an
automated T&E solution
Certify Annual Expense Management Trends Report 2017
#InsideTalk
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50
Reporting Visibility Delivers Control
Workflow: monitor people and process, approval paths,
identify delays and other roadblocks
Compliance: review processed and in-progress reports,
policy violations, fraudulent behavior
Spending: analyze by expense category, mileage,
department, employee, and more
#InsideTalk
Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved.
Improving visibility into spend is a
driving force behind the switch to
automation for 30% of companies
Certify Annual Expense Management Trends Report 2017
#InsideTalk
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52
Automation Gets Results
#InsideTalk
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53
Questions?
#InsideTalk
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54
Questions & Answers
Use the Q & A Panel to send your questions to our panelists.
Moderator Name
Title
IMA
Moderator Photo
Robert Neveu
President and Co-founder
Certify, Inc.
Jennifer Steinke
Manager, Corporate Travel & Expense
Dycom Industries, Inc.
#InsideTalk
Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved.
55
Thank You to Our Presenters!
Robert Neveu
President and Co-founder
Certify, Inc.
Jennifer Steinke
Manager, Corporate Travel & Expense
Dycom Industries, Inc.
#InsideTalk
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56
► Complete the Evaluation poll – 2 Options
• On your screen
• Click the “Resources” icon at the bottom of your screen
► Access to your CPE Certificate – 2 Options
• Click the “CPE” icon at the bottom of your console
or
• Click the link in your post-event email
► Please print a copy of the CPE certificate for your records.
► Your CPE credit will be automatically recorded in your
transcript.
Final Reminders
#InsideTalk
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Next Inside Talk Webinar:
• TBD
 Day, Date, 2017 EDT
www.imanet.org/programs_events/IMAWebinars.aspx
For Upcoming Inside Talk Events:
• Visit IMA’s website at
www.imanet.org/programs_events/IMAWebinars.aspx
• Log-in with your User Name
• Remember to check IMA’s Learning Spotlight for
upcoming webinar events
Notification of Future Webinar Schedules
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#InsideTalk
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Thank You to Our Sponsor!
www.certify.com
About IMA® and the CMA® Program
IMA® (Institute of Management Accountants) is one of the largest and most respected
associations focused exclusively on advancing the management accounting
profession. Globally, IMA supports the profession through the CMA® (Certified
Management Accountant) program, continuing education, research, networking, and
advocacy of the highest ethical business practices.
The CMA is a globally recognized certification program for management accounting
and finance professionals. The two-part CMA exam covers 11 critical business areas,
including financial planning, analysis, control, and decision support.
Learn more at http://www.imanet.org/cma-certification.

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Current Expense Management Trends and T&E Spending Benchmarks

  • 1. 2017 Expense Management Trends and T&E Spending Benchmarks Mark Brousseau Presenter April 26, 2017 Sponsored by:
  • 2. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 2 Webinar Features and CPE Credit Asking Questions Help CPE Credit Requirements
  • 3. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 3 Join the Conversation #InsideTalk @IMA_News
  • 4. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 4 Learning Objectives • Factors contributing to high expense report processing costs • Top expense management pressures, pain points and areas of opportunity • Annual budget and benchmark spending by category for T&E expenses • Finance professionals’ must-have expense reporting features for 2017 • How automation helps to eliminate inefficiency and control costs Attending this event will help you understand:
  • 5. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 5 Moderator Moderator Photo Moderator Name Title Company
  • 6. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 6 Today’s Presenters Mark Brousseau Industry leading speaker, analyst and writer Brousseau & Associates Jennifer Steinke Manager, Corporate Travel & Expense Dycom Industries, Inc.
  • 7. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 7 • 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,$10+ billion in transactions for 2016 About Certify
  • 8. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 8 Certify Annual Trends Study 2017 600+ accounting professionals from outside the Certify customer base:
  • 9. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 9 Benchmark Averages for T&E Expense Spending
  • 10. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 10 T&E Spending by U.S. Companies 1. Global Business Travel Association 2016 $293.1b 2017 travel and entertainment spending by U.S. companies + 3.8% from the previous year
  • 11. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 11 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
  • 12. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 12 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 ShippingTollsParking
  • 13. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 13 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% Meals Airfare Lodging Misc. Gas Taxi Cell Phone Car Rental Supplies ShippingTollsParking $98.74 DAILY MEAL COST 2016 Certify SpendSmart Report, Q4 2016 2016 Business Travel News Corporate Travel Index How the Expense Budget is Spent
  • 14. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 14 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
  • 15. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 15 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
  • 16. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 16 Certify Annual Travel & Expense Management Survey 2017 Determining Category Spending We do not have expense category limits 26% Based on internal historical spending 23% Follow U.S. GSA per rate guidelines 23% Determined by annual budgeting process 21% Other 7%
  • 17. T&E spending ranks as the 2nd most difficult operating expense category to control Forrester Research 2014
  • 18. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 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 2016?
  • 19. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 19 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 (Placeholder)
  • 20. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 20 Inefficiencies in T&E Expense Reporting
  • 21. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 21 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%
  • 22. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 22 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 Manual Expense Reporting Process AccountantsManagers
  • 23. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 23 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
  • 24. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 24 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
  • 25. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 25 44 37 35 37 29 32 37 34 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 5
  • 26. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 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.) T&E Systems by Company Size Certify Annual Expense Management Trends Report 2017
  • 27. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 27 56% 10% 2% 8% 24% SMALL BUSINESS MID-SIZE BUSINESS ENTERPRISE 24% 55% 7% 2% 12% 33% 37% 8% 6% 16% 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
  • 28. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 28 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?
  • 29. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 29 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 (Placeholder)
  • 30. The #1 reason companies turn to automation: simplifying expense reporting process for employees and managers (59%) Certify Annual Expense Management Trends Report 2017
  • 31. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 31 Leading frustrations for T&E program administrators: Top Expense Management Pain Points 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%
  • 32. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 32 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
  • 33. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 33 Cost to Process a Single Expense Report $6.85 fully automated $17.31 semi-automated $26.63 manual process PayStream Advisors 2016 31% 16% 9% 44% 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
  • 34. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 34 T&E Policy Compliance 79%of all companies report having a written T&E policy in place Certify Annual Expense Management Trends Report 2017 75%manually review each expense report report for policy violations
  • 35. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 35 7% 39% 41% 15% 26% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% T&E policy is not enforced Employee is responsible Manager manually review each expense Manager manually review, checking only high value expenses T&E system automatically flags out- of-policy violations Policy Enforcement Practices (all companies) Certify Annual Expense Management Trends Report 2017
  • 36. An estimated 20% of a total T&E spend is considered out of policy for the average company Aberdeen Group 2012
  • 37. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 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. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 38 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?
  • 39. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 39 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 (Placeholder)
  • 40. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 40 How does T&E automation eliminate inefficiencies and help control spending?
  • 41. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 41 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
  • 42. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 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: Aberdeen Group 2014 90% best-in-class companies have remote expense management capabilities via mobile app 2016
  • 43. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 97% of business travelers carry at least one mobile device; 80% used their smartphone to plan or book corporate travel in 2014 Expedia/Egencia Mobile Index 2014
  • 44. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 44 Control Spending Before It’s Expensed 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) $
  • 45. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. Companies that track and apply unused tickets can save 5-8% of total annual travel budget 2015 GBTA Ancillary Fee Handbook
  • 46. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 46 Automate Policy Enforcement • 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 Instant policy check via the mobile expense reporting app
  • 47. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. Building travel policy into expense reporting software can improve compliance rates as much as 44% Aberdeen Group 2013
  • 48. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 48 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
  • 49. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. AP software and general ledger are the two most common system integrations for companies using an automated T&E solution Certify Annual Expense Management Trends Report 2017
  • 50. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 50 Reporting Visibility Delivers Control Workflow: monitor people and process, approval paths, identify delays and other roadblocks Compliance: review processed and in-progress reports, policy violations, fraudulent behavior Spending: analyze by expense category, mileage, department, employee, and more
  • 51. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. Improving visibility into spend is a driving force behind the switch to automation for 30% of companies Certify Annual Expense Management Trends Report 2017
  • 52. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 52 Automation Gets Results
  • 53. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 53 Questions?
  • 54. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 54 Questions & Answers Use the Q & A Panel to send your questions to our panelists. Moderator Name Title IMA Moderator Photo Robert Neveu President and Co-founder Certify, Inc. Jennifer Steinke Manager, Corporate Travel & Expense Dycom Industries, Inc.
  • 55. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 55 Thank You to Our Presenters! Robert Neveu President and Co-founder Certify, Inc. Jennifer Steinke Manager, Corporate Travel & Expense Dycom Industries, Inc.
  • 56. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 56 ► Complete the Evaluation poll – 2 Options • On your screen • Click the “Resources” icon at the bottom of your screen ► Access to your CPE Certificate – 2 Options • Click the “CPE” icon at the bottom of your console or • Click the link in your post-event email ► Please print a copy of the CPE certificate for your records. ► Your CPE credit will be automatically recorded in your transcript. Final Reminders
  • 57. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 57 Next Inside Talk Webinar: • TBD  Day, Date, 2017 EDT www.imanet.org/programs_events/IMAWebinars.aspx For Upcoming Inside Talk Events: • Visit IMA’s website at www.imanet.org/programs_events/IMAWebinars.aspx • Log-in with your User Name • Remember to check IMA’s Learning Spotlight for upcoming webinar events Notification of Future Webinar Schedules
  • 58. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved. 58 58
  • 59. #InsideTalk Copyright © 2017 IMA® (Institute of Management Accountants). All rights reserved.
  • 60. Thank You to Our Sponsor! www.certify.com
  • 61. About IMA® and the CMA® Program IMA® (Institute of Management Accountants) is one of the largest and most respected associations focused exclusively on advancing the management accounting profession. Globally, IMA supports the profession through the CMA® (Certified Management Accountant) program, continuing education, research, networking, and advocacy of the highest ethical business practices. The CMA is a globally recognized certification program for management accounting and finance professionals. The two-part CMA exam covers 11 critical business areas, including financial planning, analysis, control, and decision support. Learn more at http://www.imanet.org/cma-certification.

Editor's Notes

  1. Margaret: Good afternoon and welcome to IMA’s Inside Talk Webinar Series. The title of today’s presentation is, ”Current Expense Management Trends and T&E Spending Benchmarks,” sponsored by Certify. I’m Margaret Loughery and I’ll be your host for today’s Inside Talk Webinar.
  2. Margaret: Before turning the presentation over to today’s moderator, I would like to quickly review some important information about today’s event. First, we encourage you to submit questions to the presenter(s) at any time during the live webinar by using the “Q & A” window at the left side of your screen. Should you experience any technical difficulty, please click the “Help” icon at the bottom of your screen for ON24 technical support. In order to earn CMA and NASBA-approved CPE credit today, you must adhere to the following completion guidelines: Register for and attend the live event As well a participate completely in the live webinar by logging in on time, and responding to all Group Monitoring Mechanisms, which will be in the form of poll questions.
  3. Margaret: Join the conversation about this webinar on Twitter using hashtag InsideTalk. Click the Twitter icon on the bottom panel and you can tweet or follow the conversation.
  4. Margaret: It’s a pleasure to have Moderator as part of our program and he/she will be serving as moderator for today’s event. Moderator’s Bio: Hi __Moderator____. Welcome to Inside Talk. Moderator: Thank you! I’m pleased to be a part of the Inside Talk webinar series and on behalf of IMA, I want to welcome everyone to today’s session.
  5. Margaret: I’d like thank our presenters, Bob Neveu and Presenter, for sharing their knowledge and expertise with us. We’re very appreciative that they have made time for IMA and our audience today. Also, thank you Moderator, for moderating today’s event.
  6. After discussing the poll results, Presenter clicks the yellow arrow to continue with the presentation.
  7. After discussing the poll results, Presenter clicks the yellow arrow to continue with the presentation.
  8. After discussing the poll results, Presenter clicks the yellow arrow to continue with the presentation.
  9. Moderator: Thank you Bob and Presenter. I would like to begin addressing some of the questions from our audience members. Let me first remind participants to send us your questions and comments by typing them into the Q & A panel on the left side of your screen. Seeded Questions: 1. My company has a number of international locations and employees? How do these systems handle currency conversions? 2. What are some of the implementation challenges companies face when switching from spreadsheets to an automated T&E process? 3. How long does it usually take for before we could expect our users to be fully up and running with a system like Certify? 4. What are some of the policy issues you’ve seen in other organizations that can lead to excessive or fraudulent spending? 5. Lost receipts are a big problem in my organization, too. How does an automated system help alleviate this? 6. How difficult is it for employees to learn mobile expense reporting? What are some of the technology adoption issues? 7. A high number of companies report having a written policy in place. Do you have any sense of average compliance rates? (At approximately 1:55 p.m.) Ok, we have time for one more question… (After final question has been addressed) Moderator: I’m going to turn your attention back to our host, Margaret.
  10. Margaret: I’d like thank our presenters, Bob Neveu and Presenter, for sharing their knowledge and expertise with us. We’re very appreciative that they have made time for IMA and our audience today. Also, thank you Moderator, for moderating today’s event.
  11. Margaret: As a last step, please be sure to complete the Evaluation survey, which should be visible on your screen. If it has not popped open, please click the “Resources” icon at the bottom of your screen for access. After completing the survey, if you have met the NASBA requirements for CPE credit, you will be able to access your Certificate of Completion today, using one of 2 methods. First, you may click the “CPE” icon at the bottom of your console before the webinar concludes. You may also click the link in your post-event thank you email that you will receive later today. Please save or print a copy of the certificate for your records. Finally, your CPE credit will be automatically entered into your member transcript.
  12. Margaret: Please join us on Day, Date for our next Inside Talk webinar, “Webinar Title,” sponsored by Sponsor Name. In addition, all upcoming webinars will be featured in IMA’s website. Please visit the website listed on your screen to learn more.
  13. Margaret: Registration to attend IMA’s 98th Annual Conference and Exposition is now open! Please join us in Denver, Colorado, from June 17th though 21st. Elevate your perspective through participation on our 8 specialty management accounting tracks. Earn 25 or more NASBA approved CPE credits, while networking with accounting and finance professionals from around the world. For more information and to register, please visit: http://www.imaconference.org.
  14. Margaret: IMA and Pace University will host the popular Women’s Accounting Leadership Series at Rice University in Houston on May 5, 2017. This inspiring half-day event is created for women, by women, to help them reach the next level of their careers. They will: • Earn 4 NASBA-approved continuing education credits • Learn about leadership, industry trends, work/life balance, and much more • Gain insight into career journeys and strategies • Take part in a mix of lectures, interactive roundtables, and valuable networking • Enjoy a light breakfast and lunch Register today by visiting www.imanet.org/womensleadership
  15. Margaret: I want to again thank Sponsor name for presenting today’s webinar, and thank all of you for your participation in today’s event, your commitment to IMA and your professional development through IMA’s Inside Talk Webinar Series. I look forward to spending time with you again soon when we’ll enjoy some more Inside Talk.