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Solving Your Toughest T&E Expense Management Challenges
- 1. The webinar willbegin shortly. You will hear silence until the webinar begins. Audio is provided through your computer speakers only. If you are unable to hear the audio through your computer speakers, simply click on the phone icon above the chat window to receive teleconference information. Technical Support Problems for this Webinar: Email: webinars@iofm.com Solving Your Toughest T&E Expense Management Challenges
- 2. Tips for usingWebEx • Receiving Teleconference Info • The chat box (asking questions/tech issues) Housekeeping • Handouts • This program will be recorded
- 3. Mark Brousseau Editor ofSpecial Projects IOFM Today’s Presenter
- 4. Featured Speaker 4 Ernie Humphrey CEO& Founder, 360 Thought Leadership Consulting
- 5. Learning Objectives • T&Eexpense 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, firstfully 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 TrendsStudy 2017 600+ accounting professionals from outside the Certify customer base: 7
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- 9. T&E Spending byU.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 forT&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 2017Difference 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 Challengesof T&E Expense Management
- 16. Expense Reporting Inefficiencies ExpenseReporting 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 Pressuresto 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 1819 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 orstaple 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 fromaccounting 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 forT&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 Solvesthe Toughest T&E Challenges
- 27. Must-Have Expense ReportingFeatures 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 costsis the top driver of T&E investments for 49% of all companies Forrester Research 2016
- 29. Challenge #1: Lowerprocessing 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 perreport $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 ExpenseReporting • 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 ranksas 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 GSALodging, 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 TravelBooking 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 intospend 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 VisibilityDelivers 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&EPolicy 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 isnot 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 PolicyEnforcement • 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 anintegrated 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 ACHDirect 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?
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- 52. Thank You! Questions afterthe event? E-mail webinars@iofm.com We hope to see you at a future AP Network event! For upcoming events please visit www.tapn.com.