The modern finance department is under pressure to identify new ways of doing more with less. As companies increasingly look to travel and entertainment expense management as an opportunity to improve control over spending and to identify labor-saving efficiencies, automation is proving to be an effective solution for businesses large and small. A recent survey of more than 500 CFOs, controllers and accountants reveals the top strategies, trends and technologies U.S. companies are using in 2016 to reduce processing and overhead costs, streamline employees' preparation of expense reports, and gain greater visibility and control over T&E spending.
We invite you to join this Webcast for a discussion of the survey findings, as well as case studies from companies that have successfully employed automation to better manage their expenses.
From this Webcast you will learn about:
What the survey reveals about spending trends by expense category and company size;
The often "hidden" costs associated with preparing and processing expense reports;
Expense management strategies in use by small, midsize and large companies;
Best practices and solutions to improve visibility into, control over and accountability for employees' expenses; and
How automation of expense management has enabled 92% of the companies participating in the survey to achieve a full return on investment in two years or fewer.
2016 Business Travel Trends and Expense Management Best Practices
1. LIVE WEBINAR
June 28, 2016
Hosted by CFO.com | Presented by
Certify
2016 Business Travel Trends and
Expense Management Best
Practices
2. Learning Objectives
• Annual T&E benchmark spending trends by expense category and company size
• Expense management strategies used by small, midsize and enterprise companies
• Best practices and solutions to improve process efficiency and spending control
• The often “hidden” costs associated with expense report processing
• How automation delivers a full ROI for 92% of all companies in 2 years or less
Attending this event will help you understand:
2
5. • 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
5
7. T&E Spending Around the World
U.S. business travel
spending 2015
$310b
$1.25tglobal business travel
spending 2015
Global Business Travel Association 2015
7
8. Business Investment in T&E
8-12%
total annual budget
for T&E expenses1
1. Aberdeen Group 2015
2. PayStream Advisors 2015
25% of all U.S. companies spend $1 million or
more on annual T&E expenses2
8
9. Base Costs Per Trip
Travel Leaders Corporate 2015
Average business trip cost for air,
hotel and car rental:
INTERNATIONAL DOMESTIC
$2,502 $1,002
9
10. U.S. Business Travel Breakdown
74%
under 250 miles
from home office
48%
involves a
personal vehicle
69%
do not require
air travel
Global Business Travel Association 2015
U.S. Travel Association 2015
Of the 1.3 million domestic business trips made daily:
10
12. 97%of business travelers carry
at least one mobile device
Mobile is Made for Travel
Expedia/Egencia Mobile Index 2015
12
13. • Nearly 80% of business travelers used their smartphone
to plan or book corporate travel in 20141
• 76% of travelers say their smartphones are “very
important/critical” to daily life; 70% feel the same about
their laptop1
• Global mobile payments market up 38% from 2015 to
$620b worldwide2
• More than 45% of best-in-class companies use mobile
expense apps (89% spend under management, 91%
compliance rate)3
Mobile Travel Trends
1. Expedia/Egencia Mobile Index 2015
2. TrendForce 2016
3. Aberdeen Group 2014
13
16. Convenience and Cost
55%
Lower average fare
per transaction
Certify SpendSmart Report Q1 2016: Average cost for Uber includes all UberX, UberXL, UberPLUS,
Uber Taxi, UberBlack, UberSUV and UberLUX rides. Certify has a relationship with Uber as an
integrated expense management solution.
16
17. The Dimensions of Effective
T&E Expense Management:
Visibility & Benchmarking
17
21. The Dimensions of Effective
T&E Expense Management:
Policy & Spending Control
21
22. Polling Question 1
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?
23. 73%
T&E Policy Compliance
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
23
24. T&E spending is the
2nd most difficult operating
expense to control
Forrester Research 2015
25. 6%
31%
42%
20%
26%
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
Certify Annual Travel & Expense Management Survey 2016
25
26. 6%
31%
42%
20%
26%
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
53%
of companies on a
web-based system
Policy Enforcement Practices
Certify Annual Travel & Expense Management Survey 2016
26
27. The Dimensions of Effective
T&E Expense Management:
Process Efficiency
27
28. Polling Question 2
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?
29. Cost to Process a Single Expense Report
$6.85
fully automated
$17.31
semi-automated
$26.63
manual process
PayStream Advisors 2015
28%
19%
5%
48%
Under $7 per report $10−$20 per report
$25 or more per report We do not track these costs
Certify Annual Travel & Expense Management Survey 2016 29
30. Leading frustrations for T&E program administrators:
Top Expense Management Pain Points
50%
employees
losing receipts
45%
employee’s failure
to submit reports
on time
38%
time it takes to
reconcile, review
and approve
30%
reviewing for
policy violations
28%
errors on
the report
Certify Annual Travel & Expense Management Survey 2016
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31. 9%
10%
11%
21%
37%
Systems and data integration
Mobility/mobile access
Travel booking
Transparency/visibility into reporting data
Expense management process
Key Areas for Improvement
Certify Annual Travel & Expense Management Survey 2016
31
32. 9%
10%
11%
21%
37%
Systems and data integration
Mobility/mobile access
Travel booking
Transparency/visibility into reporting data
Expense management process
Key Areas for Improvement
Certify Annual Travel & Expense Management Survey 2016
32
34. Travel Booking Best Practices
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)
$
34
36. Polling Question 3
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?
38. 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
MANUAL SYSTEM USAGE: 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
38
39. Improving Expense Management
Are you planning to switch or currently in the process of
evaluating vendors for a new web-based system?
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
39
40. 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
Driving Force Behind the Switch
Certify Annual Travel & Expense Management Survey 2016
40
41. Reducing processing costs is
the #1 T&E improvement for
48% of all best-in-class
companies
Aberdeen Group 2015
42. Best-in-Class T&E Strategies
Aberdeen Group 2015
88%
58%
87%
77%
68%
63%
34%
63%
50%
35%
Expense reports audited
regularly
Automatic linkage between
expense mgt. and back-end
systems
Online travel booking
system
Commercial card
system/program
End-to-end expense mgt.
solution
Best-in-Class Industry Average
42
43. 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 and 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: Complete visibility into process and spending by
category, department, employee
43
44. The Economics of Effective T&E
Expense Management: Defining the ROI
45. Automation Drives ROI
Certify Annual Travel & Expense Management Survey 2016
Businesses of every size are quickly realizing ROI:
45
46. How ROI is Achieved
What are the ways you’ve achieved ROI on your
automated expense management system?
Certify Annual Travel & Expense Management Survey 2016
58%
53%
33%
26%
22% 22%
Improved
efficiency/expense
reporting process
Reduction in processing
costs (less paper,
postage, storage etc.)
Mobile accessibility Increased employee
productivity
Elimination of payment for
duplicate expenses
Reduction in
overhead/staffing
requirements
46
48. Benefits for Businesses & Travelers
• 65% reduction in processing costs via mobile
expense reporting
• Expense report automation increases employee
productivity 29%
• Best-in-class expense management drives 87% rate of
compliance or greater to company T&E policy
• Of companies switching to an automated system, 39%
report higher employee satisfaction after adoption
• 28% less accountant time spent approving expenses
for companies with an automated system spent
Aberdeen Group 2015
PayStream Advisors 2015
48
49. Effective T&E Expense Management
• Visibility into T&E Spend by Category
• Benchmarking by T&E Spend Category
• Clear & Enforceable T&E Policies
• Governance & Control over T&E spend
• Process Efficiency from Expense Report Creation to
Reimbursement
49