Many of those with executive jobs need to travel to various cities and countries to formulate business relationships and undertake research. This can help with business productivity and knowledge of the market. When on trips, individuals often use a company account to pay for certain things, like lodging, meals, some entertainment that pertains to the business and travel expenses. However, some corporations have trouble managing their travel and entertainment (T&E) costs.
Workers can usually write off some costs in expense reports and use business accounts. However, during and after the trip, these employees spend valuable time and effort compiling reports, processing the expenses, making sure all requests are compliant and checking on reimbursements, among other functions.
Many believe these processes could be streamlined with the help of current and emerging technologies. As such, Proformative compiled a bevy of useful information to share with partners for its recent “T&E Expense Management,” webinar which took place August 7 and is available on the company website. Proformative CEO John Kogan led the informative session, which featured a presentation by Concur senior director Katherine Sullivan.
Numerous challenges presented by T&E recording
As it stands now, many companies that send workers on business travel trips tend to run into numerous obstacles when trying to justify the costs claimed on an expense account when away from the office. For example, Kogan explained, citing an Aberdeen study, that 59 percent of firms run into issues when trying to comply with company policies.
Moreover, 47 percent of businesses are not able to view analytics when trying to figure out and predict costs that will need to be spent on a trip, mostly by researching what percentage of costs are going to various functions, like travel and hotel fares. Kogan explained one of the most popular programs, Microsoft Excel, can be a bust during this process, as it does not allow workers to view data in real time.
Companies should use the cloud to manage costs
“When companies choose to automate their T&E expense management in the cloud, they are reporting additional benefits,” webinar speaker Katherine Sullivan explained. Sullivan pointed out, citing Aberdeen figures, companies that manage these costs using cloud computing cut processing expenses by 27 percent and are 22 percent more compliant with various regulations.
Overall, the webinar explained, 57 percent of businesses using the cloud for this purpose see higher value in their travel.
Mobile technologies are future of management
The Proformative webinar explained businesses that leverage mobile technology to manage T&E expenses are often ahead of the curve. Sullivan, citing an Aberdeen study, noted that when making claims and recording costs, workers who use smartphones and other devices are generally 17 percent more on par with compliance standards and spend more than $8 less per expense report.
Sullivan also noted keeping track of expenses while on-the-go on a mobile device using various programs or applications can save four hours in productivity time.
Business Management also backed up many of the claims made in the webinar and assured that the next challenge and potential success story within T&E cost management is the use of mobile devices. The source reported that travelers are taking out their phones to make arrangements, file reports and analyze their spending trends.
The webinar explained those looking to pull ahead of the pack in terms of T&E expense management are not simply relying on a traditional management system, but are also integrating consumer relationship management programs as well. These companies are able to boast real-time visibility into pre-trip approvals and total expenses spent when compared to the budget, Sullivan detailed.
Courtesy: Shared from: