This document summarizes a webinar on 2018 T&E trends and benchmarks to improve spend management. Key points include: T&E spending by US companies grew 13% to $296 billion in 2017; meals and gas make up the largest expense categories at 19% each; manual expense reporting costs $26.63 per report compared to $6.85 for automated; and automating expense reporting can reduce processing costs, increase compliance, and boost productivity. The webinar covered how companies can better manage travel spending and maximize ROI through expense control features in automated systems.
2018 Expense Management Trends: How Will They Affect Your Company?
1. 2018 T&E Trends and Benchmarks
to Improve Spend Management
July 26, 2018
2. 2
Featured Speaker
Ernie Humphrey
Chief Executive Officer
360 Thought Leadership Consulting
360 Thought Leadership Consulting helps companies
define and unlock the strategic value of their thought
leadership programs. Formerly, Ernie served as Vice
President, Educational Programs for Proformative, as
the Director of Treasury Services and as a Director of
the Corporate Treasurers Council for the Association
for Financial Professionals.
3. 3
About Certify
• Integrated, automated solutions for travel, expense, and
accounts payable invoice
• 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 2017
• Processing expenses and receipts valued at nearly $10+
billion annually
4. 4
Webinar 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 GoToWebinar
control panel at any time during the event. We will do our best to get to your
questions during the Q&A/panel discussion at the end of the event. If we do not get
to your question, we will follow up with you directly.
5. 5
Learning Objectives
Attending this event will help you understand:
• Risks and inefficiencies in T&E reporting that cost companies money
• Top pressures, pain points and goals for improving the T&E process
• Accounting professionals’ “must-have” expense system features for 2018
• The one challenge companies of every size face with expense management
• Why expense reporting costs employees and companies the most
6. 6
Certify Annual Trends Study 2018
500+ accounting professionals from
outside the Certify customer base:
39%
44%
17%
Manager, controller, or
accountant
Other (accounting staff,
consultant, administrative, etc.)
2018 Expense Management Trends Report, Certify, Inc.
Director-level or above with
expense reporting responsibility
(CEO, CFO, etc.)
8. 8
T&E Spending by U.S. Companies
GBTA BTITM Outlook – Annual Global Report & Forecast, 2017
$537MM
U.S. business trips in 2017
$262b
2016
$296b
2017
13%
annual
growth
Total U.S.-based spending for all domestic and
international business travel related costs:
9. 9
Business Investment in T&E
6-12%
total annual budget
for T&E expenses
(Aberdeen Group 2014)
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
PayStream Advisors 2016
10. 10
How Companies Set T&E Spending
We do not have expense
category spending limits
Budget based on
company historical
spending
Follow U.S. GSA per diem
rate guidelines
Determined by annual
budgeting process
Other
30%
7%
13%
21%
29%
2018 Expense Management Trends Report, Certify, Inc.
11. 11
How the Expense Budget is Spent
1. Meals 19%
2. Gas 19%
3. Airfare 15%
4. Misc. 14%
5. Lodging 13%
6. Car rental 5%
7. Cell phone 4%
8. Parking 4%
9. Supplies 3%
10. Shipping 2%
11. Taxi 1%
12. Tolls 1%
Airfare
Lodging
Misc.
Gas
Cell
Phone
Car
Rental
Supplies
Shipping Tolls Parking
Taxi
Meals
Certify SpendSmart™ Report, Q1 2018
12. 12
How the Expense Budget is Spent
1. Meals 19%
2. Gas 19%
3. Airfare 15%
4. Misc. 14%
5. Lodging 13%
6. Car rental 5%
7. Cell phone 4%
8. Parking 4%
9. Supplies 3%
10. Shipping 2%
11. Taxi 1%
12. Tolls 1%
Airfare
Lodging
Misc.
Gas
Cell
Phone
Car
Rental
Supplies
Shipping Tolls Parking
Taxi
Meals
$98.00
DAILY
MEAL COST
2018
Certify SpendSmart™ Report, Q1 2018
15. 15
Most Expensed Brands of 2018
Certify SpendSmartTM Report, Q2 2018
Technology disruption has
changed the industry and
traveler expectations
11%
4%
4%
4%
16. T&E spending ranks as the second
most difficult operating expense
category to control
Forrester Research 2014
17. 17
Polling Question 1
As a percent of total spending, what was your company’s largest
expense category in 2017?
a) Meals
b) Mileage
c) Airfare
d) Lodging
e) Other
19. 19
T&E Process is Antiquated
Unclear policies coupled with:
• Paper receipts
• Paper expense reports
• Manual routing for approvals, audits
and payments
Cause:
• High cost, inefficient process
• Inflated travel charges
• Noncompliance to laws and regulations
• Sets the opportunity for fraud
20. 20
Expense Reporting Inefficiencies
minutes to complete
one expense report
up to 23 minutes to correct
expense reports errors
15-22 average number of
reports with errors
22%
Expense Reporting Around the World:
Practices, Pain Points, and Productivity, GBTA, 2015
21. 21
Methods for Managing T&E Reporting
0 5 10 15 20 25 30 35
Pen and paper
Microsoft
Excel/spreadsheets
Homegrown solution
Web-based solution
ERP/accounting
package (Oracle, SAP, etc)
33%
10%
6%
35%
17%
2018 Expense Management Trends Report, Certify, Inc.
22. 22
T&E Systems by Company Size
SMALL
BUSINESS
MID-SIZE
BUSINESS ENTERPRISE
39%
34%
12%
5%
10%
39%
18%
2%
9%
32%
28%
42%
13%
5%
12%
Web-based solution (Concur, IBM, etc.)
Microsoft Excel/spreadsheets
Pen and paper
Homegrown solution
ERP/accounting package (Oracle, SAP, etc.)
2018 Expense Management Trends Report, Certify, Inc.
23. 23
T&E Systems by Company Size
SMALL
BUSINESS
MID-SIZE
BUSINESS ENTERPRISE
39%
34%
12%
5%
10%
39%
18%
2%
9%
32%
28%
42%
13%
5%
12%
Web-based solution (Concur, IBM, etc.)
Microsoft Excel/spreadsheets
Pen and paper
Homegrown solution
ERP/accounting package (Oracle, SAP, etc.)
2018 Expense Management Trends Report, Certify, Inc.
MANUAL SYSTEMS:
29% enterprise | 60% small businesses
24. 24
Manual Expense Reporting Process
Employees AccountantsManagers
Print spreadsheets,
tape or staple
receipts and make
copies
Enter expenses in Excel
with category, vendor,
dates, etc.
And then …
wait
Gather receipts,
itineraries and write
down non-receipt
items
Sign report/date
report and present
or mail to manager
25. 25
Manual Expense Reporting Process
Employees AccountantsManagers
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
26. 26
Manual Expense Reporting Process
Employees AccountantsManagers
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
27. 27
Top Expense Management Pain Points
Leading frustrations for T&E program administrators:
2016 2017 2018
Employees losing paper receipts/submitting without receipts 50% 52% 50%
Employees failure to submit reports on time 45% 51% 50%
Time it takes to reconcile, review and approve reports 38% 36% 31%
Reviewing for policy violations 30% 28% 28%
Errors on expense reports (incorrect codes, amounts, etc.) 28% 26% 30%
2016-2018 Expense Management Trends Report, Certify, Inc.
28. Simplifying the expense reporting
process is the #1 reason companies
turn to T&E automation
2018 Expense Management Trends Report, Certify, Inc.
29. 29
Polling Question 2
What is your current process for expense management?
a) Manual / Excel
b) ERP system
c) Automated system
d) Homegrown solution
31. 31
The ROI of T&E Expense Spending
• 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
32. 32
Top Reasons for Business Travel
31%
21%
13%
11%
10%
7%
7%
Client or prospect meeting
Team related meeting
Training and development
Events and conferences
Operations / quality control
R&D / innovation
Supplier meeting
The Value of Business Travel: The Travelers’ Perspective.
Carlson Wagonlit Travel, 2014
33. 33
Reported Outcomes and Benefits
3
4
5
6
7
7
8
11
13
15
21
0 5 10 15 20 25
Business development
Client service delivery
Increased collaboration
Strategic alignment
Innovation
Quality control
People development
Employee engagement
Self-development
Networking
Other
%
%
%
%
%
%
%
%
%
%
%
The U.S. Business Travel Industry: Business Travel’s Impact on Jobs
and the U.S. Economy in 2016. GBTA
34. 34
Executive Perspective on ROI
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
The Return of Investment of U.S. Business Travel,
Oxford Economics/U.S. Travel Association, 2009
35. Lowering processing costs is the top
driver of T&E investments for 49% of
all companies
Forester Research 2016
36. Expense Reporting Processing Costs
$6.85
fully automated
$17.31
semi-automated
$26.63
manual process
PayStream Advisors 2017
Industry average cost to process ONE expense report:
37. 37
Self-Reported Processing Costs
31%
16%
9%
Under $7 per report $10−$20 per report
$25 or more per report We do not track these costs
44%
do not track expense report
processing costs
2017 Expense Management Trends Report, Certify, Inc.
38. 38
The Hidden Cost of Expense Reporting
• 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
?
39. 39
T&E Fraud
The Association of Certified Fraud Examiners reports that:
• Approximately 15 percent of all fraudulent disbursements involve expense
reimbursement fraud
Most common types of expense reimbursement fraud:
• Mischaracterized expenses (disguising personal expenses)
• Overstatement of actual expense (altering receipts)
• Fictitious expenses (usually counterfeit receipts)
• Multiple reimbursements (submitting duplicate reports)
40. 40
Calculating Costs 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 (%)
41. 41
Polling Question 3
What is your role in expense management?
a) Decision maker
b) Influencer
c) Researcher / Analyst
d) I have no role
43. Top T&E Pressures to Improve in 2018
#1 Need to reduce expense processing costs
#2 Poor visibility into travel/expense data
#3 Lack of control over T&E spending
#4 Frequent non-complaint travel/expenses
#5 Inconsistent and lengthy reimbursement cycles
2018 Expense Management Trends Report, Certify, Inc.
44. 44
Must-Have Expense Reporting Features
Simplicity/Ease of Use: Improve on-time submission, compliance
with policy, and increase employee adoption
Automated Features: Improve expense report process efficiency
and reduce overhead costs
Accessible Anywhere: OCR receipt capture and anywhere
accessibility make T&E easy for employees
Integration Services: Connect systems to reduce errors and manual
data entry; ERP; HR; corporate/credit card feeds
Reporting Analytics: Greater visibility into process and spending by
category, department, employee, etc.
2018 Expense Management Trends Report, Certify, Inc.
46. 46
Top Features/Sources of ROI
Improved efficiency/expense reporting process 58%
Reduction in processing costs (paper, postage, storage etc.) 53%
Travel booking control (pre-trip authorization, etc.) 23%
Mobile accessibility 29%
Elimination of payment for duplicate expenses 22%
Reduction in overhead/staffing requirements 23%
More accurate mileage tracking/mapping 17%
Reduction in fraudulent expenses 22%
Increased employee productivity 27%
How ROI was generated:
2018 Expense Management Trends Report, Certify, Inc.
47. 47
Top Features/Sources of ROI
Improved efficiency/expense reporting process 58%
Reduction in processing costs (paper, postage, storage etc.) 53%
Travel booking control (pre-trip authorization, etc.) 23%
Mobile accessibility 29%
Elimination of payment for duplicate expenses 22%
Reduction in overhead/staffing requirements 23%
More accurate mileage tracking/mapping 17%
Reduction in fraudulent expenses 22%
Increased employee productivity 27%
How ROI was generated:
2018 Expense Management Trends Report, Certify, Inc.
48. 48
Control Spending Before It’s Expensed
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)
$
49. 49
Controllable Costs via Integrated Travel
• Acceptable/approved classes of service
• Ancillary fees (upgrades, boarding, airline clubs, etc.)
• Preferred travel vendors for air, hotel, and car rental
• Advance purchase and connecting flight requirements
• Category spending limits (i.e. amount not to exceed)
• Changing or cancelling flights (track/apply unused tickets)
50. Companies that track and apply
unused tickets can save 5-8% of total
annual travel budget
2015 GBTA Ancillary Fee Handbook
52. 52
T&E Automation
T&E Automation benefits the traveler, AP and most importantly the bottom line:
• Compliance to company travel policy
• Compliance to laws and regulations
• Enhanced visibility for data analysis to negotiate preferred pricing
• Data analysis to audit spend for compliance & reasonability check
53. 53
T&E Automation: Key Performance Indicators
T&E Automation makes it easier to analyze, set goals, track, and monitor
KPI’s proving the ROI:
• Process savings
• Savings negotiated with travel providers
• Percentage compliance/exceptions with travel policies
• Identify high and low spenders
• Track trips that were approved prior to travel
• Capture receipts from non-preferred suppliers
• Identify what was purchased from non-preferred and based on
volume/dollars determine if it should be negotiated
54. 54
Polling Question 4
What’s the primary reason you haven’t made the switch to an
automated expense management software?
a) Too time consuming
b) Lack of executive level support in moving forward with the process
c) No available budget
d) We don’t feel we need to make the switch yet
e) We have already made the switch to an automated expense
management software
