T&E Management: How to Improve Control, Compliance and Processes

www.certify.com T&E Management: How to Improve Control, Compliance and Processes

Travel & Expense Management 2015:How to improve control, compliance and process

efficiency in the modern workplace

LIVE WEBINAR | May 28, 2015

www.certify.com T&E Management: How to Improve Control, Compliance and Processes 2

• The top business travel and expense trends of 2015 that illustrate the need for improved control, compliance and process efficiency

• Key benchmarks that allow you to compare your company's overall T&E spend to that of other organizations

• How to identify opportunities to improve the management of and visibility into your T&E spend

• What companies like yours are doing now to meet the future of expense management automation

Learning Objectives

After this event you will understand:


• 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 by email within 24 hours

• Please ask questions anytime during the event via the “Questions” box in your GoToWebinar control panel, and we will do our best to answer all questions during the Q&A/panel discussion; if we run out of time before we get to your question, we will follow up with you directly after the event

Before We Get Started


In 2008, the Certify team launched its first product featuring mobile technology and web-based automation. Certify has since accelerated its growth to become the second largest provider of expense reporting software in North America.

Ben ParkerDirector of Business Development

Today’s Speakers


• Industry-leading with first fully automated expense system

• Providing travel & expense solutions since 2008

• 64 languages, 140+ currencies, clients in 80 countries

• #1 Highest Rated Expense Management Software on G2 Crowd, with a 4.8 out of 5 star rating

• Over 15 million expense transactions in 2014

• Processing over $5 billion/year in expense reports

Featured in:

About Certify

http://management.fortune.cnn.com/2013/12/19/the-most-over-the-top-expense-account-items-of-2013/?iid=HP_LN

http://www.economist.com/blogs/gulliver/2014/01/business-traveller-food

http://online.wsj.com/news/articles/SB10001424127887324463604579041133954185054?mg=reno64-wsj&url=http://online.wsj.com/article/SB10001424127887324463604579041133954185054.html

http://www.cnbc.com/id/101339055


Ernie currently serves as the CEO of 360 Thought Leadership Consulting, helping companies define and unlock the strategic value of their thought leadership programs. Formerly, Ernie served as the 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.

Today’s Speakers

Ernie HumphreyChief Executive Officer


About 360 Thought Leadership Consulting

360 Thought Leadership Consulting helps companies unlock the strategic value of their thought leadership programs including:

• Partnering with companies to impact their brand awareness

• Designing and managing the execution of hundreds of successful events from webinars to conferences from A to Z

• Developing innovative marketing channels

• Building and managing content for a professional community of several hundred thousand constituents


Travel & Expense Management 2015:Benchmark Data for Key T&E Categories


BENCHMARKS

Are you able to compare your organization’s T&E spend to others?


• Total Respondents: 434 companies (non-Certify clients)

• Audience: • 28% Small Business: less than 100 employees• 37% Mid-Sized Business: 101 – 999 employees• 35% Large Business: 1,000+ employees

• Location:• 6% International• 94% U.S.

• Demographics:• 38% C-level or above finance professionals• 43% Manager, Controller or Accountant• 19% Other (accounting staff, consultant, administrative, etc.)

Third Annual Expense Management Trends SurveyConducted in December 2014

About the Data

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Reference: Certify’s SpendSmart Report, Q4, 2014

1. Meals 21%

2. Airfare16%

3. Lodging14%

4. Gas

12%

5. Misc.

8%

6. Cell Phone6%

7. Car Rental 5%

8. Groceries 5%

9. Supplies 5%

10. Taxi

5%

11. Tolls 2%

12. Shipping 2%

13. Parking 1%

How the T&E budget was spent by business professionals:

Spend Trends for 2014

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Reference: Certify’s SpendSmart Report, 2013-2014

The average expense amounts, based transaction data from the 2014 Certify SpendSmart Report:

Category 2013 2014 Difference

Meals $26.08 $25.67 – 1.58%

Airfare $329.65 $345.21 + 4.61%

Lodging $200.24 $213.90 + 6.6%

Car Rental $185.27 $193.58 + 4.39%Taxi $32.76 $31.81 – 2.94%

Gas $50.73 $40.41 – 22.65%

Parking $32.75 $32.70 – 0.15%

Cell Phone $98.88 $89.30 – 10.18%

Benchmark Data by Expense Category

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Reference: Certify’s Annual Travel & Expense Management Survey 2015 | http://www.gsa.gov/portal/content/101518

A breakdown of meal expense amounts, based on Certify transactions and the GSA’s per diem meal rates:

Meal BreakdownAverage Expense Amounts for 2014

GSA Per Diem Highest Tier (Major Metros)

Breakfast $11.88 $12

Lunch $21.46 $18

Dinner $28.24 $36

Total Per Day $61.58 $71*

*includes $5 for incidental expenses

Benchmark Data for Meal Expenses

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PAIN POINTS

Does your organization share any of the top T&E pain points?


Reviewing for policy violations

Reconciling the data

Errors on the report

Employees losing receipts

Time it takes to reconcile, review, and approve

Employee's failure to submit reports on time

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Largest Pain Points Surrounding T&E

Reference: Certify’s Annual Travel & Expense Management Survey 2015

Top Pain Points in 2014


Areas to Improve for 2015

Top T&E Pressures in 2014

Lengthy expense reimbursements (16%)

Frequent instances of noncompliance (16%)

Need to reduce expense costs46%

Poor visibility into spend

27%

Lack of control over T&E spend

25%


Top T&E Pressures and Improvements

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Travel & Expense Management 2015:This year’s top business travel and expense trends that illustrate the

need for improved control, compliance and process efficiency


Travel and entertainment (T&E)—second only to payroll as the largest business expense, accounts for 10–12% of total annual budget

$186,000,000,000The projected amount North American companies will spend on travel and

entertainment (T&E) in 2015, according to a report by J.P. Morgan

Why Control is Critical for T&E Management

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Annual T&E Spend by Company Size

$50k – $5mm

Mid-Size Company101 – 999 employees

> $5,000,000

Large EnterpriseMore than 1,000 employees

< $50,000

Small BusinessLess than 100 employees

Reference: Certify’s Travel and Expense Trends Data, February 2014

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How does your organization currently manage T&E spend?

Poll Question



Manual processes are used by the majority of companies, however Excel or electronic spreadsheets, pen/paper and homegrown systems provide little control.

Methods for Managing T&E Reporting

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CONTROL

How can organizations improve control over their T&E management programs?


You can’t control what you can’t see:• 55% of all organizations’ main priority for

2014 was to enhance visibility into overall T&E spending

• Manual processes provide only 30% visibility vs. 61%+ visibility with web-based expense systems

• 74% companies using cloud/web-based systems regularly audit expense reports vs. 44% of companies on manual system

Types of visibility gained with cloud technology:• Documented path of approvals• Expense reports by employee• Expense spend by category

Leverage Technology for Greater Visibility and Control

Visibilit

y into

T&E S

pend

Regular

Reporti

ng

Regular

Audits of E

xpen

ses

Automate

d Data Analy

tics

61% 57%

74%

57%

30%

40%44%

29%

Web-Based Expense SystemManual Expense Process


How does your organization enforce compliance with T&E expense policies?

Poll Question


0%10%20%30%40%50%60%70%

14%

35% 36%

21%

1%4%

31% 27%19%

63%

How Companies Enforce T&E Policies

Manual Process Web-Based System


Policy Enforcement Trends

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Online Travel SitesTravel AgencyOnline Booking Tool

How companies are booking travel:


Open Booking

(through direct provider)

Online Travel Sites/Agencies(i.e. Expedia, Orbitz, Kayak)

Online Booking Tool (OBT)

(i.e. Carlson, Get There)

Travel Agency

(through a travel agent)

PRO: Flexibility

CON: No control over policy enforcement

PRO: Flexibility

CON: No control over policy enforcement

PRO: Policy enforcement

CONS: Contracts and systems; minimum transactions. Best for organizations spending over $2mm on T&E.

PRO: Full-service policy enforcement

CONS: Cost; $40-50 fee in addition to booking fees. Best for organizations spending over $4mm on T&E.

Manual Process

Web-Based Process

Corporate Travel Trends

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• 59% of companies indicated 20% of expenses submitted are in violation of T&E policy

• 6.3% of all transactions are “out of compliance” according to a report by Oversight Systems

• Of these noncompliant transactions, 19% are “fraudulent” with an average cost of $115, amounting to $13.7 million in losses

• Businesses with fewer than 100 employees have a 28% higher median fraud loss than those 100+

References: Oversight Systems. Association of Certified Fraud Examiners, 2014 Global Fraud Study.

The Impact of Expense Report Fraud

Organizations that monitor compliance experience a 70%

decrease in fraudulent spending

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COMPLIANCE

New approaches to better enforcepolicy compliance


Automate Policy Compliance

1. Establish a corporate travel and entertainment expense policy

2. Integrate your policy into the expense system, setting both:• Hard Policies (decline expense exceeding X amount)• Soft Policies (manager’s discretion for approval)

3. Allow technology to enforce policies, notifying employees and managers of violations, including:• Missing receipts• Duplicate expenses• Items exceeding spend limits

Flagged violation, notifying manager amount exceeded policy limit

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Adopt the Latest T&E Technology

1. Use an integrated online travel booking system to control the expense before it occurs (used by 87% of all best-in-class companies)

2. Mobile applications ensure compliance to policies and reduce expense-processing costs by 65%; the #1 feature in selecting expense vendors by 45% of companies

3. An end-to-end expense management system can provide a robust platform to help streamline process and automate controls

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Which areas of your T&E process do you feel can be more efficient?

Poll Question


PROCESS

Streamlining the T&E processfor greater efficiency


Make it Easy for Travelers and Employees

• An integrated online travel booking system also expedites spend capture and expense reporting processes for employees and accountants

• Add mobility and give travelers the power to automate receipt capture, eliminate manual data entry, and streamline review and approval processes from any location, anytime

• Web- and cloud-based expense management provides a single global solution that’s accessible by all users and administrators

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Automation — including expense reports, direct credit card feeds and approval workflows

Must-have features requested by finance:


Policy Enforcement — immediate out-of-policy notifications for employees with set expense limits by category

IT Integration with Legacy Systems — manage large-scale user data through integrations with HRIS, multiple ERP systems and accounting software

Mobile Technology — report and manage expenses remotely with smartphone access including receipt capture images and on-the-go travel booking

Listen to Your Finance Department

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Standard Automated T&E Features:

Embrace the Future of Expense Management Automation

• Credit Card Integrations — automated data feeds of corporate credit card transactions eliminates the reconciliation process

• Mobile Receipt Capture — employees take a photo of a receipt with their smartphone, turning it into an electronic receipt

• Online Expense Report Creation — create, submit and approve expense reports online, eliminating time-consuming spreadsheets

• Direct Feeds — automated feeds sync data with accounting and HR systems, eliminating redundant manual data entry

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www.certify.com T&E Management: How to Improve Control, Compliance and Processes36

Embrace the Future of Expense Management Automation

Emerging technologies (specific to Certify):

• AutoFill (parsing) technology electronically extracts receipt and expense data from paper receipts to eliminate manual entry

• Automated expense report creation with scheduled build days automatically builds and prepares reports for users to review and submit for approval; includes customizable email reminders, plus optional manager notification of noncompliance

• Automated approval workflows instantly notifies managers of reports pending approval, decreasing expense report lifecycle and reimbursement times


Certify is Web-Based Travel and Expense Management Made Easy


ReceiptParse Technology1. Snap a photo of your receipt with your phone2. Click AutoFill and the data is instantly extracted3. Review the entry, and submit!

Automated Expense Reports with ReportExecutive™ Automatic expense reports, coordinated to your company’s scheduling preferences. Configurable and always on time.• Add Receipts & Expenses Reminder• Submit Expense Report Reminder• Company-Wide Scheduling

Save Time, Simplify Process

Mobile Technology Streamlines the Expense Reporting Process for On-The-Go Business Travelers

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7/1/2014 - 7/31/2014

7/2/2014

7/2/2014

7/3/2014

7/5/2014

7/2/2014

7/3/2014

7/3/2014

7/3/2014

National

Make Compliance Automatic

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Gain Insight and Control

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Q&A Session


For more information about Certify, visit www.certify.com

Thank youfor attending today’s session.