travel & expense trends for 2015: how does your businesses expense management process stack up?

www.certify.com Travel & Expense Trends for 2015


• Learn the business travel spend trends of 2014 and what to expect in 2015

• Identify ways to improve management of your company’s T&E spend in 2015

• Benchmark key categories of T&E to compare your company's overall spend with other organizations

• Recognize current and emerging trends in T&E automation

Learning Objectives

After attending this event you will be able to:


• 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 to address your question.

Webinar Event Notes


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

Robert NeveuPresident & Co-founder

Speaker


About Certify

• Industry-leading with first fully automated expense system

• Providing travel & expense solutions since 2008

• 64 languages, 140+ currencies, clients in 18 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:

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

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

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

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


Travel & Expense Trends for 2015:How Does Your Company’s Expense

Management Process Stack Up?

Learn the latest trends in travel and expense management for 2015. Presented by: Certify | Travel and Expense Made Easy


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

The Importance of T&E


Annual Spend on Travel & Entertainment

The majority of mid-size companies

spend between $50k and $5mm on

T&E

$50k – $5mm

Mid-Size Company101 – 999 employees

The majority of large organizations

spend over $5mm on T&E

> $5,000,000

Large EnterpriseMore than 1,000 employees

The majority of small businesses

spend less than $50k on T&E

< $50,000

Small BusinessLess than 100 employees

What companies of all sizes are spending on T&E:

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


• 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 Survey

About the Data

Conducted in December 2014


How does your organization

currently manage its T&E

spend?

Poll Question


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

How do organizations currently manage their travel and expense

reporting?

T&E Expense Management Trends


T&E Expense Management Trends

The Divide Between Small, Medium & Large Businesses

Manual - 64%

ERP - 11%

Web-Based - 25%

Manual - 19%

ERP - 33%

Web-Based - 48%

Manual - 48%

ERP - 19%

Web-Based - 34%

Small Business Medium Business Large Business



What is the largest pain point

surrounding expense management?

Poll Question


Top Pain Points

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

Reviewing for policy violations

Reconciling the data

Errors on the report

Employees losing receipts

Time it takes to reconcile, review, andapprove

Employee's failure to submit reports on time

Largest Pain Points Surrounding T&E



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 spend27%

Lack of control

over T&E spend

25%

Top Pressures & Areas for Improvement



How do organizations improve

T&E management processes

and overcome those pain

points?


1. Automate key components of T&E expense management• Ranked the #1 top priority in 2014 by 52% of companies in the

2014 Aberdeen Report

2. Take measures to improve and enforce corporate T&E policies• Ranked #2 by 48% of companies

3. Arm travelers with better technologies to make T&E expense management simpler and faster • Mobile applications• Globally accessible tools

1. Leverage analytics to improve intelligence and data

Key Strategic Actions to Improve

Processes

Reference: Aberdeen Group 2014, The Traveler & Expense Management Guide for 2014


Expense Management Features

1. AutomationFor example, automated expense reports, direct credit card feeds, and

automated approval workflows.

2. Policy EnforcementEmployees receive immediate out-of-policy notifications, and companies can

set expense limits by category.

3. Integrations with Finance SystemsManage large-scale user data through integrations with HRMS interfaces,

multiple ERP systems, and accounting software.

4. Mobile TechnologyMobile apps allow users to report and manage expenses remotely, whether

using a smartphone to capture receipt images or for on-the-go travel booking.

Must-have features requested by the finance department:



Automation is the Finance Department’s

#1 requested feature. How are

companies leveraging this technology?


Ways to Automate T&E Management

1. AutoFill (Parsing) Technology

Extracts receipt and expense data from receipts, eliminating manual entry

2. Automated Expense Report Creation with Scheduled Build days

Expense reports are built automatically, ready for users to review and submit for approval. Users receive

customizable email reminders, with optional manager notification of non-compliance.

3. Automated Approval Workflows

Managers are instantly notified of electronic reports pending approval, decreasing expense report lifecycle

and reimbursement times

Standard Automated T&E Features:

Emerging Technologies, Specific to Certify:

1. Credit Card Integrations

Automated data feeds of corporate credit card transactions eliminates the reconciliation process

2. Mobile Receipt Capture

Employees take a photo of a receipt with their smartphone, turning it into an electronic receipt

3. Online Expense Report Creation

Create, submit and approve expense reports online, eliminating time-consuming spreadsheets

4. Direct Feeds

Automated feeds sync data with accounting and HR, eliminating manual data entry between systems


How is your organization enforcing

T&E expense policies?

Poll Question


Policy Enforcement

14%

35% 36%

21%

1%4%

31%

27%

19%

63%

0%

10%

20%

30%

40%

50%

60%

70%

T&E policy is notenforced

It is the responsibility ofthe employee

Manager manuallyreview each expense

Accountant manuallyreviews, checking only

high value expenses

T&E systemautomatically flags out-

of-policy violations

How Companies Enforce T&E Policies

Manual Process Web-Based System



T&E Policies


Online Travel Sites

Travel Agency

Online Booking Tool

Corporate Travel

How companies

are booking travel:


Manual Process Automation

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 atravel 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


Fraud in Expenses

• 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% of expenses submitted are “fraudulent” with average amount of $115, amounting to $13.7 million in losses.

• Organizations who monitor compliance have a 70% decrease in fraudulent spending.

Reference: www.businesstravelnews.com/Expense-Management/Study--Fraudulent-Expense-Reports-Have-Cost-Cos--Millions-In-2014


The Craziest Business Expenses of 2014

$125 Cher Concert Tickets“Because I was in Vegas and had a free evening.”Expensed by an employee at a small insurance company

2nd Monitor“Because I have two eyes.”Expensed by an employee at a mid-sized company

Beers at $100 each“Liquid to maintain life in the tropics.”Expensed by an employee at a mid-sized company


BENCHMARKING DATA FOR

KEY T&E CATEGORIES


Reference: Certify’s SpendSmart Report, Q4, 2014

1. Meals

21%

2. Airfare

16%

3. Lodging

14%

4. Gas

12%

5. Misc.

8%

6. Cell Phone 6%

7. Car Rental 5%

8. Groceries 5%

9. Supplies 5%

10.Taxi

5%

11.Tolls

How the T&E budget was

spent by business

professionals:

Spend Trends in 2014


Benchmarking Data: Expense Categories

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%


Benchmarking Data: Meal Expenses

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


T&E EXPENSE MANAGEMENT:

LOOKING FORWARD


53% of companies on a manual process—who indicated they will switch to a

web-based expense system—estimate they will switch within the next 12

months.

21% 32% 26% 9% 9%

Within the next 6 months

6 – 12 months

12 – 24 months

24 – 36 monthsNot sure

The timeframe anticipated to switch to a cloud-based expense system:

Switching from Spreadsheets



Reasons for Switching

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Improve employee compliance rates tocorporate travel policies

Provide an expense system accessiblefrom anywhere

Gain reporting and analytics around T&Espend

Simplifying the expense reporting process

What are the forces driving the switch to a web-based

system?



Simplification with Integrations

0%

10%

20%

30%

40%

50%

60%

70%

80%

General Ledger Corporate Credit Cards AP ERP CRM

Integrations: Manual vs. Web-Based

Manual Process

Web-Based System


13% 13%

44%

19% 14% 16%6%

22%

76%67%

60%

57%

43% 43%

31%

53%

Mobile receiptcapture

Mobile reportcreation

Direct deposit Automatedexpense reports

Reporting &Analytics

Integrated travelbooking

Multi-language User support for all

Manual Process Web-Based System


Expected Benefits vs. Achieved Results

Expectations vs. Results


ROI on Expense Management Software

Time to recoup costs after

switching to a web-based

expense management

system:

Small Businesses

Experience Fastest ROI

25%of small businesses

currently use a web-based

system

of small businesses

experience 100% ROI in one

year or less

70%



CERTIFY: WEB-BASED SOFTWARE FOR

T&E EXPENSE MANAGEMENT


ReceiptParse Technology

1. Snap a photo of your receipt with your phone

2. Click AutoFill and the data is instantly extracted

3. 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 and Simplify Expense

Reporting

Mobile Technology Streamlines the Expense Reporting

Process for On-The-Go Business Travelers


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


Q&A SESSION


For more information about

Certify, visit www.certify.com

Thank youfor attending today’s session.

travel & expense trends for 2015: how does your businesses expense management process stack up?

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