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1
2016 Leading Trends in T&E Expense
Management
JANUARY 28, 2016
2
Learning Objectives
• T&E expense spending benchmarks by category and average amount
• Common expense management headach...
3
• Today’s event will be recorded and all attendees will be kept in
listen-only mode to eliminate excessive background no...
4
360 Thought Leadership Consulting helps companies define
and unlock the strategic value of their thought leadership
prog...
5
• Industry-leading with first fully automated expense
system
• 64 languages, 140+ currencies, clients in 80
countries
• ...
6
T&E Spending Trends
7
T&E Spending is Substantial
$1.25t U.S. business travel
spending 2015
(estimate: GBTA 2015)
$310bglobal business travel
...
8
25% of all U.S. companies
spend $1 million or more on
annual T&E expenses
(PayStream Advisors 2015)
of total annual budg...
9
Total Respondents: 508 companies (non-Certify clients)
Audience:
• 24% Small business: less than 100 employees
• 49% Mid...
10
MEALS
AIRFARE
MISC.
LODGING
GAS
CELL PHONE
CAR RENTAL
GROCERIES
SUPPLIES
TAXI
TOLLS
SHIPPING
PARKING
1. Meals 19%
2. Ai...
11
Category 2014 2015 Difference
Meals $25.67 $26.06 +1.52%
Airfare $345.21 $274.00 –20.62%
Lodging $213.90 $223.45 +4.64%...
12
Meal Category Average Expense 2015 GSA Per Diem Tier 1
Breakfast $12.33 $17
Lunch $21.56 $18
Dinner $25.06 $34
Total Pe...
13
Expense Category Spending Limits
How companies set T&E policy maximums for meals, hotel and
airfare:
25%
25%24%
20%
6%
...
14
Expense Management Practices
15
a) Paper-based/spreadsheets
b) ERP system (Oracle, Microsoft Dynamics, etc.)
c) Web-based software (Certify, Concur, et...
16
Methods for Managing T&E Reporting
The mix of expense management systems remains consistent:
Reference: Certify’s Annua...
17
37%37%9%4%13%
Web-based solution (Concur, IBM, etc.)
Microsoft Excel/spreadsheets
Pen and paper
Homegrown solution
ERP/...
18
Integrated Efficiencies
System Integrations Currently Used
67%
61%
77%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
GENERAL L...
19
Travel Booking Systems
43%
22%
15%
20%
29%
15%
5%
51%
0% 10% 20% 30% 40% 50% 60%
A COMBINATION OF ABOVE
A TRAVEL AGENCY...
20
a) We have no formal T&E policy
b) Manual review process
c) Automated system that flags violations
d) Policy is not enf...
21
Corporate T&E Policy
85%of companies indicate
they have a T&E policy
73%of those companies
are manually reviewing
for p...
22
6%
31%
42%
20%
26%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
T&E policy is not
enforced
It is the responsibility
of the emp...
23
Why Policy Enforcement Matters
$35,000 for a dozen cases of wine
$25,000 house rental for one day
$20,000 private plane...
24
Improving T&E Expense
Reporting
25
Expense Management Automation
• Cost savings: reduce costs in time and materials
required to process expense reports
• ...
26
Improving Expense Management
Are you planning to switch or currently in the process of
evaluating vendors for a new web...
27
Driving Force Behind the Switch
14%
14%
25%
28%
32%
40%
66%
0% 20% 40% 60% 80%
Integrate multiple finance & HR systems ...
28
Leading frustrations for T&E program administrators:
Reference: Certify’s Annual Travel & Expense Management Survey 201...
29
Key Areas of Improvement for 2016
Process improvements top the list:
9%
10%
11%
21%
37%
0% 5% 10% 15% 20% 25% 30% 35% 4...
30
Must-Have Expense Reporting Features
Automation: Expense report creation, workflow process and
approvals, direct credit...
31
Achieving Return on Investment
32
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 avera...
33
Average cost to process a single expense report:
$6.85
fully automated
$17.31
semi-automated
$26.63
manual
(PayStream A...
34
• Hard costs for paper, printing and postage
• Hours to create, review and approve reports
• Time required for reconcil...
35
2015 Expense Trends Survey
2016 Expense Trends Survey
Average Time to ROI is Improving
Reference: Certify’s Annual Trav...
36
How ROI is Achieved
What are the ways you’ve achieved ROI on your
new expense management system?
58%
53%
33%
26%
22% 22...
37
Benefits of Investing in Automation
Actual benefits of using a web-based system
surpass expectation in every category
R...
38
Unexpected Results
Web-based expense systems and data are being
leveraged for other business functions:
%ofcompaniesrep...
39
Closing Thoughts
1. When is the last time we did a thorough review of our T&E policies?
As your company grows, effectiv...
40
Closing Thoughts (cont’d)
5. What is the average time it takes to reimburse an employee once they submit an expense rep...
41
Q & A
42
Thank You
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Leading trends in travel and entertainment expense management: The finance professionals guide to reporting best practices for 2016

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Certify recently surveyed more than 500 CFOs, controllers and accounting professionals from outside of its customer base to uncover the top trends and best practices in expense management today. Find out what other small, midsized and enterprise businesses like yours are doing to navigate the complex expense reporting process, streamline workflow, and increase spending visibility and control.

Learn more about:

• Annual T&E expense spending by category and company size
• Common expense management challenges and expected benefits
• The factors and estimated costs to process an individual expense report
• Types of systems and processes currently used for expense management
• What it takes to achieve a return on investment with a new system

Publié dans : Business
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Leading trends in travel and entertainment expense management: The finance professionals guide to reporting best practices for 2016

  1. 1. 1 2016 Leading Trends in T&E Expense Management JANUARY 28, 2016
  2. 2. 2 Learning Objectives • T&E expense spending benchmarks by category and average amount • Common expense management headaches and expected benefits • The factors and estimated costs to process an individual expense report • Types of systems and processes currently used for expense management • What it takes to achieve a return on investment with a new system After attending this event you will understand:
  3. 3. 3 • 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. Webinar Learning Objectives
  4. 4. 4 360 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. Ernie Humphrey Chief Executive Officer Featured Speaker
  5. 5. 5 • Industry-leading with first fully automated expense system • 64 languages, 140+ currencies, clients in 80 countries • #1 highest rated expense management software for user satisfaction on G2 Crowd • Over 30 million expense transactions in 2015 • Processing over $10+ billion/year in expense reports About Certify
  6. 6. 6 T&E Spending Trends
  7. 7. 7 T&E Spending is Substantial $1.25t U.S. business travel spending 2015 (estimate: GBTA 2015) $310bglobal business travel spending 2015 INTERNATIONAL DOMESTIC $2,502 $1,002 Average base cost per business trip for air, hotel and car rental (Travel Leaders Corporate 2015)
  8. 8. 8 25% of all U.S. companies spend $1 million or more on annual T&E expenses (PayStream Advisors 2015) of total annual budget for T&E (Aberdeen Group 2014) 10-12% Business Investment in T&E
  9. 9. 9 Total Respondents: 508 companies (non-Certify clients) Audience: • 24% Small business: less than 100 employees • 49% Mid-sized business: 101 – 999 employees • 27% Large business: 1,000+ employees Demographics: • 46% Director-level or above with expense reporting responsibility (CEO, CFO, etc.) • 45% Manager, controller or accountant • 9% Other (accounting staff, consultant, administrative, etc.) Fourth Annual Expense Management Trends Survey Conducted in December 2015 About the Data
  10. 10. 10 MEALS AIRFARE MISC. LODGING GAS CELL PHONE CAR RENTAL GROCERIES SUPPLIES TAXI TOLLS SHIPPING PARKING 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% Reference: Certify’s SpendSmart™ Report, Q4 2016 How the Expense Budget is Spent
  11. 11. 11 Category 2014 2015 Difference Meals $25.67 $26.06 +1.52% Airfare $345.21 $274.00 –20.62% Lodging $213.90 $223.45 +4.64% Car Rental $193.58 $186.45 –3.68% Taxi $31.81 $31.82 +0.03% Gas $40.41 $30.32 –24.96% Parking $32.70 $32.23 – 1.43% Cell Phone $89.30 $92.24 +3.29% Reference: Certify’s SpendSmart Report, 2014-2015 Category 2014 2015 Difference Meals $25.67 $26.06 +1.52% Airfare $345.21 $274.00 –20.62% Lodging $213.90 $223.45 +4.64% Car Rental $193.58 $186.45 –3.68% Taxi $31.81 $31.82 +0.03% Gas $40.41 $30.32 –24.96% Parking $32.70 $32.23 – 1.43% Cell Phone $89.30 $92.24 +3.29% Benchmark Spending by Category
  12. 12. 12 Meal Category Average Expense 2015 GSA Per Diem Tier 1 Breakfast $12.33 $17 Lunch $21.56 $18 Dinner $25.06 $34 Total Per Day $58.95 $74* *includes $5 for incidental expenses Reference: Certify’s SpendSmart™ Report, Q4 2016 | http://www.gsa.gov/portal/content/101518 Benchmark Spending for Meals
  13. 13. 13 Expense Category Spending Limits How companies set T&E policy maximums for meals, hotel and airfare: 25% 25%24% 20% 6% We do not have expense category limits Based on internal historical spending Follow U.S. GSA per diem rate guidelines Determined by annual budgeting process Other Reference: Certify’s Annual Travel & Expense Management Survey 2016
  14. 14. 14 Expense Management Practices
  15. 15. 15 a) Paper-based/spreadsheets b) ERP system (Oracle, Microsoft Dynamics, etc.) c) Web-based software (Certify, Concur, etc.) d) Not applicable How does your organization currently manage its T&E spend? POLLING QUESTION 1
  16. 16. 16 Methods for Managing T&E Reporting The mix of expense management systems remains consistent: Reference: Certify’s Annual Travel & Expense Management Survey 2013-2016
  17. 17. 17 37%37%9%4%13% 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 Reference: Certify’s Annual Travel & Expense Management Survey 2016
  18. 18. 18 Integrated Efficiencies System Integrations Currently Used 67% 61% 77% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% GENERAL LEDGER ACCOUNTS PAYABLE CREDIT CARD Web-based Reference: Certify’s Annual Travel & Expense Management Survey 2016
  19. 19. 19 Travel Booking Systems 43% 22% 15% 20% 29% 15% 5% 51% 0% 10% 20% 30% 40% 50% 60% A COMBINATION OF ABOVE A TRAVEL AGENCY CORPORATE TRAVEL SOFTWARE ONLINE TRAVEL SITES Manual Web-based Reference: Certify’s Annual Travel & Expense Management Survey 2016
  20. 20. 20 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? POLLING QUESTION 2
  21. 21. 21 Corporate T&E Policy 85%of companies indicate they have a T&E policy 73%of those companies are manually reviewing for policy violations Manual policy review is inefficient, prone to error and fraud Reference: Certify’s Annual Travel & Expense Management Survey 2016
  22. 22. 22 6% 31% 42% 20% 26% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% T&E policy is not enforced It is the responsibility of the employee Manager manually review each expense Manager manually review, checking only high value expenses T&E system automatically flags out-of-policy violations Enforcing T&E Policy Compliance Methods Used to Enforce Policy Compliance 52% of companies on a web-based system Reference: Certify’s Annual Travel & Expense Management Survey 2016
  23. 23. 23 Why Policy Enforcement Matters $35,000 for a dozen cases of wine $25,000 house rental for one day $20,000 private plane rental $18,000 night out in Las Vegas $4,000 for one bottle of champagne Reference: Certify Craziest Expenses Survey 2015 (non-customers) Top 5 Highest Expense Amounts of 2015
  24. 24. 24 Improving T&E Expense Reporting
  25. 25. 25 Expense Management Automation • Cost savings: reduce costs in time and materials required to process expense reports • Process efficiency: eliminate data entry and errors, improve administrative reporting • Increased productivity: mobile and cloud-based accessibility simplify expense management • Policy compliance: integrate company T&E policies and spending controls Why do best-in-class companies turn to automation?
  26. 26. 26 Improving Expense Management Are you planning to switch or currently in the process of evaluating vendors for a new web-based system? 62% of all companies planning to make the switch will do so in the next 12 months 37% SMALL BUSINESS 46% MIDSIZED COMPANIES 53% ENTERPRISE Reference: Certify’s Annual Travel & Expense Management Survey 2016
  27. 27. 27 Driving Force Behind the Switch 14% 14% 25% 28% 32% 40% 66% 0% 20% 40% 60% 80% Integrate multiple finance & HR systems into one system Increase frequency of expense reports being submitted Reimburse employees faster Improve employee compliance rates to corporate travel policies Gain reporting and analytics around T&E spend Provide expense system accessibly from anywhere (online, mobile) Simplifying the expense reporting process for employees and managers Reference: Certify’s Annual Travel & Expense Management Survey 2016
  28. 28. 28 Leading frustrations for T&E program administrators: Reference: Certify’s Annual Travel & Expense Management Survey 2016 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
  29. 29. 29 Key Areas of Improvement for 2016 Process improvements top the list: 9% 10% 11% 21% 37% 0% 5% 10% 15% 20% 25% 30% 35% 40% Systems and data integration Mobility/mobile access Travel booking Transparency/visibility into reporting data Expense management process Reference: Certify’s Annual Travel & Expense Management Survey 2016
  30. 30. 30 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 Reporting: Complete visibility into process and spending by category, department, employee Compliance: Duplicate receipts/expenses, category spending limits, automatic notification of violations Integration: Accounting software, general ledger, HRIS, CRM, ERP, ACH direct deposit
  31. 31. 31 Achieving Return on Investment
  32. 32. 32 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? POLLING QUESTION 3
  33. 33. 33 Average cost to process a single expense report: $6.85 fully automated $17.31 semi-automated $26.63 manual (PayStream Advisors) 28% 19% 5% 48% Under $7 per report $10−$20 per report $25 or more per report We do not track these costs Reference: Certify’s Annual Travel & Expense Management Survey 2016 Expense Reporting Costs
  34. 34. 34 • Hard costs for paper, printing and postage • Hours to create, review and approve reports • Time required for reconciliation and reimbursement • Storage fees to archive expense reports • Lost productivity Hidden Costs of a Manual System Reducing processing costs is the #1 T&E improvement for 48% of all best-in-class companies (Aberdeen Group)
  35. 35. 35 2015 Expense Trends Survey 2016 Expense Trends Survey Average Time to ROI is Improving Reference: Certify’s Annual Travel & Expense Management Survey, 2015 & 2016
  36. 36. 36 How ROI is Achieved What are the ways you’ve achieved ROI on your new expense management system? 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 Reference: Certify’s 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
  37. 37. 37 Benefits of Investing in Automation Actual benefits of using a web-based system surpass expectation in every category Reference: Certify’s Annual Travel & Expense Management Survey 2016
  38. 38. 38 Unexpected Results Web-based expense systems and data are being leveraged for other business functions: %ofcompaniesreporting Annual budgeting and planning: 44% Auditing: 43% Invoicing and payments: 39% Regular forecasting (monthly, quarterly, etc.): 28% Financial reporting (Sarbanes- Oxley, SEC, etc.): 25% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% Reference: Certify’s Annual Travel & Expense Management Survey 2016
  39. 39. 39 Closing Thoughts 1. When is the last time we did a thorough review of our T&E policies? As your company grows, effectively managing T&E expenses while keeping employee frustration to a minimum becomes much more challenging. 2. What is the rate of compliance with our T&E travel policies? Non-compliance can be costly in terms of hard dollar cost and can contribute to non-compliance with company policies well beyond those related to T&E expenses. 3. What are we doing to actively manage our T&E expenses? The ability to forecast and react to forces impacting T&E spend will save money, and help mitigate the variance between your company’s actual verses expected financial results. 4. How do we benchmark our T&E spend? Benchmarking is a great way to assess if your travel expenses are in line with your competitors, and to determine if variances from reactive benchmarks make sense from a strategic perspective. Considering what you just learned in this presentation, ask yourself the following:
  40. 40. 40 Closing Thoughts (cont’d) 5. What is the average time it takes to reimburse an employee once they submit an expense report ? There is no reason to frustrate company travelers with long reimbursement. Faster reimbursement cycles leads to happier employees. 6. What is the current level of automation in our T&E process? Advances in cloud-related technologies have changed the economics of automating manual processes. If your T&E management is primarily manual, there may well be cost-effective ways to upgrade systems. 7. Are we using, or have we looked at a cloud-based T&E expense management solution? If the answer is no, it is hard to argue it does not deserve 10 minutes of research to start, given the maturity of these systems and the benefits that companies of all sizes are realizing in managing a critical category of business expense. Considering the information in this presentation, ask yourself the following:
  41. 41. 41 Q & A
  42. 42. 42 Thank You

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