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T&E Expense Spending and Automation Technology Trends for 2016
- 1. T&E Expense Spendingand Automation Technology Trends for 2016 Robert Neveu President & Co-Founder, Certify September 21, 2016 Sponsored by:
- 2. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 2 Webinar Features Should you experience any technical difficulty, please click the “Help” icon at the bottom of the console for audience support. Audio Broadcast: ► You should hear sound through your computer speakers or headphones ► To listen to the audio by telephone, click the “Request Call-in” icon on the bottom Panel for teleconference Asking Questions: ► Questions may be submitted using the Q&A icon on the left side of the console ► Questions will be addressed after the formal presentation Pop-up Blockers: ► Please temporarily disable your internet pop-up blockers Volume Slider
- 3. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 3 Join the Conversation #InsideTalk @IMA_News
- 4. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 4 • Download a PDF of the slides – Resources icon – Link in post-event email – IMA Webinar Library • IMA Members can also view this webinar again www.imanet.org/programs_events/imawebinars.aspx Visit IMA’s website: Webinar Materials and Access to Recording
- 5. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 5 • CMAs, CFMs & CPAs can report 1 hour of CMA and NASBA approved CPE for today’s event. • Click the “CPE” icon at the bottom of your console to access your Certificate of Completion. Please print or save for your records. • Your CPE credit will be automatically recorded in your transcript. CPE Credit Requirements
- 6. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 6 Featured Presenter Lisa Beaudoin, CMA, CAE Director of Educational Partnerships IMA
- 7. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 7 Learning Objectives Upon completing this webinar, you will be able to: 1. Identify key influences and factors driving the growth of cloud- based process automation 1. Recognize the top spend and expense management challenges reported by U.S. businesses 2. Explain how process automation can improve workflow efficiency and employee productivity 3. Identify leading strategies to automate T&E expense management and control spending
- 8. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 8 Featured Presenter Robert Neveu President and Co-founder Certify
- 9. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 9 • 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 About Certify
- 10. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 10 Automation Technology Trends
- 11. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 11 Cloud Adoption is Growing Human ResourcesDocument Sharing AP & Invoicing Timekeeping Expense Management Reference: RightScale 2016 State of the Cloud Report 95%of U.S. Businesses CRM Tools
- 12. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 12 Driven by Process Inefficiencies … +60%of company CFOs report they are “drowning in spreadsheets” CFO Alliance 2016 CFO Sentiment Study
- 13. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 13 97%of business travelers carry at least one mobile device And Demand for Mobile Access Reference: Expedia/Egencia Mobile Index 2015
- 14. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 14 Why Automation? Reduce processing and overhead costs Eliminate paper and manual processes Electronic workflow and approval routing Expedite processing and approval times Improve cash flow and cash management Increase visibility into spending Improve employee productivity and satisfaction Universal benefits of business process automation
- 15. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 15 Top AP Priorities for Improvement Ardent Partners 2015 Improve AP reporting and analytics 1# Reduce processing costs 2#
- 16. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 16 CAGR for Automated T&E Software PayStream Advisors 2015 TEM Navigator
- 17. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 17 Additional Opportunities in AP Ardent Partners 2015 How are AP invoices received and processed at your company? Manual Electronic 34% 66%
- 18. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 18 Polling Question 1 a) 25% or less b) 25-50% c) 50-75% d) 75% or more e) Not applicable Approximately what percentage of your accounting processes are automated?
- 19. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 19 T&E Spending Benchmarks
- 20. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 20 $310b T&E Spending Around the World $1.25tglobal business travel spending 2015 Global Business Travel Association 2015 U.S. business travel spending 2015
- 21. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 21 Average Base Cost Per Trip Travel Leaders Corporate 2015 Average business trip cost for air, hotel and car rental: INTERNATIONAL DOMESTIC $2,502 $1,002
- 22. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 22 Business 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
- 23. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 23 How 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
- 24. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 24 $98.75 DAILY MEAL COST 2016 How 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
- 25. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 25 Benchmark 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
- 26. T&E spending ranksas the 2nd most difficult operating expense category to control Forrester Research 2015
- 27. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 27 Expense Technology Trends
- 28. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 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 spending?
- 29. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 29 T&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
- 30. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 30 Expense 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
- 31. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 31 Current 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
- 32. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 32 Top 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
- 33. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 33 T&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
- 34. For the averagecompany, an estimated 20% of total T&E spend is considered out of policy Aberdeen Group 2014
- 35. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 35 Polling 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?
- 36. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 36 Strategies to Automate Expense Management and Control Spending
- 37. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 37 #1 Mobile: 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:
- 38. Mobile expense reporting reducesprocessing costs by 65%, delivers quicker report approval and reimbursement times Aberdeen Group 2014
- 39. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 39 #2 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
- 40. Businesses under 100 employeeshave a 28% higher median fraud loss than those with >100 Association of Certified Fraud Examiners 2015
- 41. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 41 #3 Travel: 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 Controllable costs via integrated travel booking: • Advance purchase and connecting flight requirements • Ancillary fees (upgrades, boarding, airline clubs, etc.) • Changing or cancelling flights
- 42. Companies that trackand apply unused tickets can save 5-8% of total annual travel budget 2015 GBTA Ancillary Fee Handbook
- 43. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 43 #4 Integrations: The Key to Greater 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
- 44. T&E automation increases employeeproductivity 29% via reduced data entry, mobile tools and other timesaving efficiencies Aberdeen Group 2014
- 45. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 45 #5 Reporting: 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:
- 46. Lack of visibilityinto spending is the top T&E area of improvement for 51% of all companies Aberdeen Group 2014
- 47. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 47 Thank You
- 48. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 48 Polling Question 4 a) Under $7 per report b) $10−$20 per report c) $25 or more per report d) We do not track these costs What is the average cost to process a single expense report at your organization?
- 49. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 49 Questions & Answers Use the Q & A Panel to send your questions to our panelists. Robert Neveu President and Co-founder Certify Lisa Beaudoin, CMA, CAE Director of Educational Partnerships IMA
- 50. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 50 Thank You to Our Presenter! Robert Neveu President and Co-founder Certify
- 51. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 51 ► Complete the Evaluation poll • On your screen • Resources icon ► 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
- 52. © 2016 Instituteof Management Accountants. Inside Talk Webinar Series. All rights reserved. #InsideTalk 52 Next Inside Talk Webinar: For Upcoming Inside Talk Events: • Visit IMA’s website at www.imanet.org/programs_events/IMAWebinars.aspx • Log-in with your User Name & Password • Remember to check IMA’s Learning Spotlight for upcoming webinar events Notification of Future Webinar Schedules
- 53. www.certify.com Thank You toOur Sponsor!
Editor's Notes
- #9 Lisa: At this time I would like to introduce our featured presenter for today’s program. With us today we have Bob Neveu (Nev • You) Robert’s Bio: In 2008, Bob launched Certify as his second software startup with offices in Portland, Maine and San Diego, California. The Certify team has accelerated the growth of the business to where they are considered the second largest provider in North America of expense reporting software with multinational customers in 80 countries including Pitney Bowes, Bristol Myers-Squibb, Subway Sandwiches, and Virgin Galactic. The Certify expense management solution is the first fully automated system processing more than $10b in expense transactions in 2015. Certify was also named an Editor’s Choice by PC Mag in 2015 and has gained the attention of many major news publications for its perspective and insights into expense management, including the Wall Street Journal, NPR, Newsweek, CBS News, and many others. Please join me in welcoming Bob Neveu. Bob: Thank you. It’s great to be here and I’m pleased to be able to discuss this important topic with you and our members today.
- #10 For an overview on Certify …