Exploring results from the 2017 T&E Expense Management Trends Survey, learn from the experience of businesses like yours and discover how you can streamline workflow, increase spending visibility and control, and manage the complex expense reporting process with ease.

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Solving Your Toughest T&E
Expense Management Challenges

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3. Mark Brousseau
Editor of Special Projects
IOFM
Today’s Presenter

4. Featured Speaker
4
Ernie Humphrey
CEO & Founder,
360 Thought Leadership Consulting

5. Learning Objectives
• T&E expense spending by category and benchmark average costs
• Today’s most common expense management technologies and system features
• Why 80% of enterprise companies are using automation to manage T&E
• Effective methods for enforcing employee compliance with travel policies
• How companies are benefiting from automation and quickly achieving ROI
Attending this event will help you understand:
5

6. • 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 $10+ billion in 2016
About Certify

7. Certify Annual Trends Study 2017
600+ accounting professionals from outside
the Certify customer base:
7

8. Why T&E Matters

9. T&E Spending by U.S. Companies
1. Global Business Travel Association 2016
9
$293.1b
2017 travel and entertainment
spending by U.S. companies
+ 3.8%
from the
previous year

10. 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

11. 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
11
Meals
Airfare
Lodging
Misc.
Gas
Taxi
Cell
Phone
Car
Rental
Supplies
Shipping Tolls Parking

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
12
Meals
Airfare
Lodging
Misc.
Gas
Taxi
Cell
Phone
Car
Rental
Supplies
Shipping Tolls Parking
$98.74
DAILY
MEAL COST
2016
Certify SpendSmart Report, Q4 2016
2016 Business Travel News Corporate Travel Index

13. 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

14. 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?

15. The Many Challenges of T&E
Expense Management

16. Expense Reporting Inefficiencies
Expense Reporting Around the World: Practices, Pain Points, and Productivity, GBTA, 2015
16
up to
minutes to complete
one expense report
minutes to correct
expense reports errors
average number of
reports with errors
23 15-22
22%

17. Top T&E Pressures to Improve in 2017
#1 Need to reduce expense processing costs
#2 Lack of control over T&E spending
#3 Poor visibility into travel/expense data
#4 Frequent non-complaint travel/expenses
#5 Inconsistent and lengthy reimbursement cycles
17
Certify Annual Expense Management Trends Report 2017

18. 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
Certify Annual Expense Management Trends Report 2017
18
Cloud/web-based
Excel spreadsheets
ERP system
Homegrown solution
Pen and paper

19. 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
19
Certify Annual Expense Management Trends Report 2017

20. 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.)
T&E Systems by Company Size
20
MANUAL SYSTEMS:
20% enterprise • 64% small businesses
Certify Annual Expense Management Trends Report 2017

21. 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

22. 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
Manual Expense Reporting Process
Employees AccountantsManagers

23. 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
Manual Expense Reporting Process
Employees AccountantsManagers

24. Leading frustrations for T&E program administrators:
Top Expense Management Pain Points
24
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%

25. 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?

26. How Automation Solves the
Toughest T&E Challenges

27. 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.
27
Certify Annual Travel & Expense Management Survey 2017

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

29. Challenge #1: Lower processing costs
$6.85
fully automated
$17.31
semi-automated
$26.63
manual process
29
PayStream Advisors 2016
Average processing cost per report by system type:

30. 31%
16%
9%
Under $7 per report $10−$20 per report
$25 or more per report We do not track these costs
30
Certify Annual Expense Management Trends Report 2017
44%
do not track expense
report processing costs
Challenge #1: Lower processing costs

31. Solution: Mobile Expense Reporting
• 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
65% lower expense report processing costs for
companies using a mobile T&E app
2016

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

33. Certify Annual Travel & Expense Management Survey 2017
Challenge #2: Controlling Spending
33
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%

34. www.gsa.gov, accessed 1/30/17
34
GSA Lodging, Meals & Incidentals for San Francisco, CA
Lodging (per night) Breakfast Lunch Dinner
$267 $17 $18 $31
Incidental -- $5 $5 $5
Challenge #2: Controlling Spending

35. Solution: Integrated Travel Booking Controls
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)
$
35

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

37. Certify Annual Travel & Expense Management Survey 2017
Challenge #3: Poor Visibility into Data
37
2nd biggest driver of T&E
improvements for companies
on a manual process
FACT:
You can’t control it
if you can’t see it

38. Certify Annual Travel & Expense Management Survey 2017
38
Challenge #3: Poor Visibility into Data
of companies switching
to T&E automation …45%

39. Certify Annual Travel & Expense Management Survey 2017
39
Challenge #3: Poor Visibility into Data
of companies switching
to T&E automation …45%
report increased visibility
into spending and data
$

40. Solution: 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

41. An estimated 20% of a total T&E
spend is considered out of policy
for the average company
Aberdeen Group 2012

42. Challenge #4: T&E Policy Compliance
79%of all companies report
having a written
T&E policy in place
42
Certify Annual Expense Management Trends Report 2017
75%manually review each
expense report report
for policy violations

43. 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
43
Certify Annual Expense Management Trends Report 2017
Challenge #4: T&E Policy Compliance

44. Solution: 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

45. Companies with an integrated T&E
solution experience 64% fewer
instances of reimbursement errors
Aberdeen Group 2014

46. Certify Annual Travel & Expense Management Survey 2017
Challenge #5: Reimbursement Cycle
46
65%
of companies require reports
be submitted one month or
less from expense date

47. Certify Annual Travel & Expense Management Survey 2017
47
34%
of companies take between
8 and 20 days to reimburse
employee expenses
Reimbursement times affect employee morale and cash flow
Challenge #5: Reimbursement Cycle

48. Solution: Integrated ACH Direct Deposit
Manual Process
of companies switching to
T&E automation reimburse
employees faster
45%
58% 18%
Who’s using ACH?
Automated System

49. 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?

50. Questions?

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52. Thank You!
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