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How Automated T&E Expense Management Removes Barriers to Company Growth
- 1. How Automated T&E Expense Management Removes Barriers to Company Growth July 20, 2016
- 2. Agenda Today’s presentation will cover: Learning Objectives • Calculating the return on investment of business travel • Expense reporting challenges that erode productivity and profits • The hidden and average expense report processing costs by system • Spending, travel and expense technology trends • Five T&E strategies to remove friction and foster growth
- 3. AgendaWebinar 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 control panel at any time during the event. We will do our best to answer all questions during the Q&A session at the end of the event; if we do not get to your question, we will follow up with you directly
- 4. Mark Brousseau President and Owner Brousseau & Associates Today’s Presenter
- 5. Robert Neveu President and Co-Founder 5 Stephen Shodrock Accounting Manager Featured Speakers
- 6. AgendaAbout Certify • 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 over 30 million expense transactions and $10+ billion in expense reports for 2015
- 7. Click to add text Click to add title #SageSummit |@TwitterHandle (Optional) 7 Calculating the ROI of Business Travel
- 8. AgendaThe ROI of Business Travel • 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
- 9. 21% 15% 13%11% 8% 7% 7% 6% 5% 4%3% AgendaTop Reasons for Travel and Outcomes The Value of Business Travel: The travelers’ perspective, Carlson Wagonlit Travel, 2014t Reported outcomes:Purpose of business travel: 31% 21%13% 11% 10% 7% 7% Client/Prospect Meeting Team-related MeetingTraining & Development Event Conferences & Fairs Operations & Quality Control Innovation and R&D Supplier Meeting Business Development Client Service Delivery Increased Collaboration Strategic Alignment Innovation Quality Control People Development Employee Engagement Self-development Networking Other
- 10. AgendaExecutive Perspective on ROI 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
- 11. AgendaPOLLING QUESTION 1 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?
- 12. Click to add text Click to add title #SageSummit |@TwitterHandle (Optional) 12 Why T&E Expense Matters
- 13. $310b AgendaT&E Spending Around the World $1.25tglobal business travel spending 2015 Global Business Travel Association 2015 U.S. business travel spending 2015
- 14. AgendaAverage Base Cost Per Trip Travel Leaders Corporate 2015 Average business trip cost for air, hotel and car rental: INTERNATIONAL DOMESTIC $2,502 $1,002
- 15. AgendaU.S. Business Travel Breakdown 74% under 250 miles from home office 48% involves a personal vehicle 31% require air travel Global Business Travel Association 2015 U.S. Travel Association 2015 Of the 1.3 million domestic business trips made daily:
- 16. AgendaBusiness Investment in T&E 8-12% total annual budget for T&E expenses (Aberdeen Group 2015) PayStream Advisors 2016 Company Revenue Average Annual Travel Spend Less than $100 million ~ $700,000 $100 million to $500 million ~ $1,500,00 $501 million to $2 billion ~ $7,400,000 Greater than $2 billion ~ $58,000,000
- 17. AgendaHow the Expense Budget is Spent 1. Meals 19% 2. Airfare 17% 3. Misc. 17% 4. Lodging 14% 5. Gas 11% 6. Cell phone 5% 7. Car rental 5% 8. Groceries 5% 9. Supplies 5% 10. Taxi 3% 11. Shipping 2% 12. Tolls 1% 13. Parking 1% Certify SpendSmart Report, Q4 2015
- 18. $98.75 DAILY MEAL COST 2016 AgendaHow the Expense Budget is Spent 1. Meals 19% 2. Airfare 17% 3. Misc. 17% 4. Lodging 14% 5. Gas 11% 6. Cell phone 5% 7. Car rental 5% 8. Groceries 5% 9. Supplies 5% 10. Taxi 3% 11. Shipping 2% 12. Tolls 1% 13. Parking 1% Certify SpendSmart Report, Q4 2015 2016 Business Travel News Corporate Travel Index
- 19. AgendaBenchmark Spending by Category Category 2014 2015 Difference Gas $40.41 $30.32 –24.96% Airfare $345.21 $274.00 –20.62% Lodging $213.90 $223.45 +4.64% Car Rental $193.58 $186.45 –3.68% Cell Phone $89.30 $92.24 +3.29% Meals $25.67 $26.06 +1.52% Parking $32.70 $32.23 –1.43% Taxi $31.81 $31.82 +0.03% Certify SpendSmart Report, Q4 2015
- 20. T&E spending ranks as the 2nd most difficult operating expense category to control Forrester Research 2015
- 21. Click to add text Click to add title #SageSummit |@TwitterHandle (Optional) 21 Expense Management Trends and Technological Barriers
- 22. AgendaPOLLING 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 spending?
- 23. AgendaT&E Expense Systems Used 2013 2014 2015 2016 Cloud/web-based 36% 44% 37% 35% Excel spreadsheets 35% 29% 32% 37% Homegrown solution 7% 5% 7% 5% Pen and paper 10% 4% 4% 8% ERP 12% 18% 19% 15% Consistent mix of expense management systems in use over time: Certify Annual Travel & Expense Management Survey 2013-2016
- 24. AgendaExpense Reporting’s Hidden Costs $6.85 fully automated $17.31 semi-automated $26.63 manual PayStream Advisors 2015 • Man 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
- 25. AgendaCalculating Cost and Lost Opportunity 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 (%)
- 26. AgendaCurrent Systems by Company Size Web-based solution (Concur, IBM, etc.) Microsoft Excel/spreadsheets Pen and paper Homegrown solution ERP/accounting package (Oracle, SAP, etc.) MANUAL SYSTEMS: 70% small businesses, 26% enterprise 22% 55% 10% 5% 8% 37% 37% 9% 4% 13% 46% 16% 4% 6% 28% SMALL BUSINESS MID-SIZE BUSINESS ENTERPRISE Certify Annual Travel & Expense Management Survey 2016
- 27. AgendaExpense Technology Migration 37% SMALL BUSINESS 46% MIDSIZED COMPANIES 53% ENTERPRISE Certify Annual Travel & Expense Management Survey 2016 62% of all companies planning to make the switch will do so in the next 12 months
- 28. AgendaTop Goals for Improving T&E Certify Annual Travel & Expense Management Survey 2016 25% 28% 32% 40% 66% 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
- 29. AgendaT&E Policy Compliance 73%85%of all companies report having a written T&E policy in place of those companies are manually reviewing for policy violations Manual policy review is inefficient, prone to error and fraud Certify Annual Travel & Expense Management Survey 2016
- 30. For the average company, an estimated 20% of a total T&E spend is considered out of policy Aberdeen Group 2014
- 31. AgendaPOLLING QUESTION 3 a) We have no formal T&E policy b) Manual review process c) Automated system that flags violations d) Policy is not enforced How does your organization enforce compliance with T&E policies?
- 32. Click to add text Click to add title #SageSummit |@TwitterHandle (Optional) 32 Five T&E Strategies to Remove Friction and Foster Growth
- 33. AgendaMobile: Make it 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:
- 34. Mobile expense reporting reduces processing costs by 65%, delivers quicker report approval and reimbursement times Aberdeen Group 2014
- 35. AgendaT&E Policy: Make Enforcement Automatic • Set hard/soft policy controls: apply spending caps, reporting requirements (meal attendees, receipts, etc.), vendor preferences, and more • Eliminate duplicate receipts/expenses: automatic system reviews identify duplicate expenses, flag out- of-policy expenses, reduce fraud, and save money • Manage expense reporting on time: set a schedule to automatically build reports, notify employees and managers, and submit expenses (specific to Certify) Flagged violation, notifying manager amount exceeded policy limit
- 36. Businesses under 100 employees have a 28% higher median fraud loss than those with >100 Association of Certified Fraud Examiners 2015
- 37. AgendaTravel : Control Cost Before It’s Expensed Pre-Trip Approval: Requires authorization prior to booking; configured by employee, policy, etc. Lowest Logical Fare: Automatically identifies best available rates for proposed itinerary $ • Category spending limits (i.e. amount not to exceed) • Preferred travel vendors for air, hotel and car rental • Acceptable classes of service for flights Controllable costs via integrated travel booking: • Advance purchase and connecting flight requirements • Ancillary fees (upgrades, boarding, airline clubs, etc.) • Changing or cancelling flights
- 38. Companies that track and apply unused tickets can save 5-8% of total annual travel budget 2015 GBTA Ancillary Fee Handbook
- 39. AgendaIntegrations: the Key to 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
- 40. T&E automation increases employee productivity 29% via reduced data entry, mobile tools and other timesaving efficiencies Aberdeen Group 2014
- 41. AgendaReporting: Can’t Control What You Can’t See • Spending: analyze company spend by expense category, department, individual employee, monthly reimbursements, etc. • Compliance: review processed and in-progress reports, policy violations, identify risk and offenders, and improve company compliance rates • Workflow: monitor people and process; documented path of approvals ensure expenses are reviewed and approved according to guidelines Actionable analytics and insights into key spending and performance metrics:
- 42. Lack of visibility into spending is the top T&E area of improvement for 51% of all companies Aberdeen Group 2014
- 44. Click to add text Click to add title #SageSummit |@TwitterHandle (Optional) 44 Questions?
- 46. Click to add text Click to add title #SageSummit |@TwitterHandle (Optional) 46 Thank You!
Editor's Notes
- Bob Nev•YOU and Teri TOW•cash