uncovering the employee t&e spend trends of 2017
TRANSCRIPT
Uncovering the Employee
Greg Lloyd, PayStream AdvisorsBob Neveu, Certify
T&E Spend Trends of 2017
Today’s Presenters
Bob NeveuPresident and Co-Founder
Certify
Greg LloydSenior DirectorPayStream Advisors
PayStream Advisors
• Purchase-to-Pay Research, Tools, and Education• NavigatorTM Solution Ratings and Reviews• Process Reviews, Assessments, and RFP’s
Research and Advisory Services for Financial Strategists
• Industry-leading, first fully automated travel and expense management system
• 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 2016
• Processing nearly 40 million expenses and receipts valued at $10+ billion in 2016
About Certify
Certify Annual Trends Study 2017
600+ accounting professionals from outside the Certify customer base:
Agenda
Common Expense Management Process Challenges
Expense Management Technology Usage & Trends
Benchmark Averages for T&E Expense Spending
How T&E Automation Improves Visibility and Control
Common Expense Management Process Challenges
Common Process ChallengesA manual, inefficient process is the primary challenge for most organizations.
“What are the top three challenges your organization faces in the expense management process?”
PayStream Advisors’ 2016 Travel & Expense Management Report | All rights reserved.
Common Process ChallengesMost companies submit expense receipts via inter-office mail.
PayStream Advisors’ 2016 Travel & Expense Management Report | All rights reserved.
“Which of the following methods do your employees use to submit expense receipts?”
Common Process ChallengesMost companies submit expense receipts via inter-office mail.
PayStream Advisors’ 2016 Travel & Expense Management Report | All rights reserved.
“What is the reason your organization has not automated the TEM process?” (top five answers shown)
Common Process ChallengesDirect deposit is most common reimbursement method.
PayStream Advisors’ 2016 Travel & Expense Management Report | All rights reserved.
“Which of the following methods do you use to reimburse employee expenses?”
Common Process ChallengesLess than half of organizations audit every expense report, increasing fraud risk.
“What percent of expense reports do you audit?”
Preventing Fraud in Employee Expense Management| PayStream Advisors 2016 | All rights reserved.
Common Process ChallengesMost organizations have an inconsistent approach to report auditing.
“If you audit less than 100%, how do you select reports to audit?”
Preventing Fraud in Employee Expense Management| PayStream Advisors 2016 | All rights reserved.
Expense ManagementTechnology & Usage Trends
Expense Reporting Inefficiencies
up tominutes to complete one expense report
minutes to correct expense reports errors
average number of reports with errors
23 15-22
22%
Expense Reporting Around the World: Practices, Pain Points, and Productivity, GBTA, 2015
2014 2015 2016 2017
44
3735
37
2932
3734
57
5 64 4
86
18 1915
17
Methods for Managing T&E ReportingConsistent mix of expense management systems:
Cloud/web-based
Excel spreadsheets
ERP system
Homegrown solution
Pen and paper
Certify Annual Expense Management Trends Report 2017
SMALLBUSINESS
MID-SIZEBUSINESS ENTERPRISE
33%
37%
8%
6%
16%
56%
10%
2%
8%
24%24%
55%
7%2%
12%
Web-based solution (Concur, IBM, etc.)Microsoft Excel/spreadsheetsPen and paperHomegrown solutionERP/accounting package (Oracle, SAP, etc.)
T&E Systems by Company Size
Certify Annual Expense Management Trends Report 2017
56%
10%
2%
8%
24%
SMALLBUSINESS
MID-SIZEBUSINESS ENTERPRISE
24%
55%
7%2%
12%
33%
37%
8%
6%
16%
Web-based solution (Concur, IBM, etc.)Microsoft Excel/spreadsheetsPen and paperHomegrown solutionERP/accounting package (Oracle, SAP, etc.)
T&E Systems by Company Size
AUTOMATED SYSTEMS: 80% enterprise • 36% small businesses
Certify Annual Expense Management Trends Report 2017
Integrated travel booking technology
Multi lanugage/multi-currency capabilities
Instant reporting and analytics
Automated expense report build technology
Mobile report creation and approval
Mobile receipt capture technology
Direct deposit via ACH
0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
18%
19%
27%
30%
30%
31%
39%
Current Expense System Features
% reporting
Certify Annual Expense Management Trends Report 2017
Polling Question 1
a) Paper-based/spreadsheetsb) ERP system (Oracle, Microsoft Dynamics, etc.)c) Web-based expense software (Certify, Concur,
etc.)d) Not applicable
How does your organization currently manage T&E expense reporting?
Leading frustrations for T&E program administrators:
Top Expense Management Pain Points
2015 2016 2017
Employees losing paper receipts/submitting without receipts 33% 50% 52%
Employees failure to submit reports on time 39% 45% 51%
Time it takes to reconcile, review and approve reports 38% 38% 36%
Reviewing for policy violations 20% 30% 28%
Errors on expense reports (incorrect codes, amounts, etc.) 23% 28% 26%
Certify Annual Expense Management Trends Report 2017
Top T&E Pressures to Improve in 2017
36% Need to reduce expense processing costs
31% Lack of control over T&E spending
31% Poor visibility into travel/expense data
21% Frequent non-compliant travel/expenses
20% Lengthy reimbursement times
Certify Annual Expense Management Trends Report 2017
Cost to Process a Single Expense Report
$6.85fully automated
$17.31 semi-automated
$26.63 manual process
PayStream Advisors 2016
31%
16%9%
44%
Under $7 per report $10−$20 per report$25 or more per report We do not track these costs
PayStream Advisors’ 2016 Travel & Expense Management ReportCertify Annual Expense Management Trends Report 2017
Top T&E Pressures to Improve in 2017
36% Need to reduce expense processing costs
31% Lack of control over T&E spending
31% Poor visibility into travel/expense data
21% Frequent non-complaint travel/expenses
20% Lengthy reimbursement times
✓✓✓
Certify Annual Expense Management Trends Report 2017
Top T&E Pressures to Improve in 2017
36% Need to reduce expense processing costs
31% Lack of control over T&E spending
31% Poor visibility into travel/expense data
21% Frequent non-complaint travel/expenses
20% Lengthy reimbursement times
✓✓✓
TRAVEL POLICYCOMPLIANCE ISSUES!
Certify Annual Expense Management Trends Report 2017
Budgeting & Category Spending Caps
We do not have expense category limits
26%
Based on internal historical spending
23%Follow U.S. GSA per rate
guidelines23%
Determined by annual budgeting process
21%
Other7%
Certify Annual Expense Management Trends Report 2017
T&E Policy Compliance
79%of all companies report
having a writtenT&E policy in place
75%manually review each expense report report
for policy violations
Certify Annual Expense Management Trends Report 2017
0%5%
10%15%20%25%30%35%40%45%
7%
39% 41%
15%26%
Policy Enforcement Practices (all companies)
Certify Annual Expense Management Trends Report 2017
Reimburse employees faster
Improve employee compliance rates to corporate policy
Gain reporting and analytics around T&E spend
Provide system accessibly from anywhere (online, mobile)
Simplify process for employees and managers
0% 10% 20% 30% 40% 50% 60% 70%
27%
27%
30%
40%
59%
Driving Force Behind T&E Automation
Certify Annual Expense Management Trends Report 2017
Benefits Achieved Through Automation
PayStream Advisors’ 2016 Travel & Expense Management Report | All rights reserved.
Polling Question 2
a) Reducing process and workflow inefficiencies b) Tighter controls for employee T&E spendingc) Lowering expense report processing costsd) Increasing travel policy compliance
What is your organization’s top area for T&E improvement in the year ahead?
Benchmark Averages for T&E Expense Spending
T&E Spending by U.S. Companies
$293.1b 2017 travel and entertainment
spending by U.S. companies
+ 3.8% from the
previous year
Global Business Travel Association 2016
Business Investment in T&E
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 Travel & Expense Management Report | All rights reserved.
1. Meals 19%
2. Airfare 15%
3. Lodging 14%
4. Misc. 13%
5. Gas 11%
6. Taxi 9%
7. Cell phone 5%
8. Car rental 5%
9. Supplies 5%
10. Shipping 2%
11. Tolls 1%
12. Parking 1%
How the Expense Budget is Spent
Meals
Airfare
LodgingMisc.
Gas
Taxi
Cell Phone
Car Rental
SuppliesShipping Tolls Parking
Certify SpendSmart Report, Q4 2016
1. Meals 19%
2. Airfare 15%
3. Lodging 14%
4. Misc. 13%
5. Gas 11%
6. Taxi 9%
7. Cell phone 5%
8. Car rental 5%
9. Supplies 5%
10. Shipping 2%
11. Tolls 1%
12. Parking 1%
How the Expense Budget is Spent
Meals
Airfare
LodgingMisc.
Gas
Taxi
Cell Phone
Car Rental
SuppliesShipping Tolls Parking
$98.74DAILYMEAL COST
2016
Certify SpendSmart Report, Q4 20162016 Business Travel News Corporate Travel Index
Category 2016 2017 Difference
Gas $30.32 $29.77 –1.81%
Airfare $274.00 $316.17 +15.39%
Lodging $223.45 $210.19 –5.93%
Car Rental $186.45 $190.74 +2.30%
Cell Phone $92.24 $89.00 –3.51%
Meals $26.06 $27.02 +3.68%
Misc. $55.71 $68.20 +22.41%
Taxi $31.82 $27.90 –12.31%
Benchmark Spending by Category
Certify SpendSmart Report, Q4 2016-2017
2017 U.S. GSA Per Diem Rates
GSA Lodging, Meals & Incidentals for San Francisco, CA
Lodging (per night) Breakfast Lunch Dinner
$267 $17 $18 $31Incidental -- $5 $5 $5
www.gsa.gov, accessed 1/20/17
Polling Question 3
a) Mealsb) Mileagec) Airfared) Not sure
As a percent of total spending, what was your company’s largest expense category in 2016?
How T&E Automation Improves Visibility and Control
Must-Have Expense Reporting FeaturesAutomation: Expense report creation, workflow process and approvals, direct credit card feeds
Mobile Applications: Smartphone-enabled receipt image capture, mobile report creation/approval, and policy tools
Compliance: Duplicate receipts/expenses, category spending limits, automatic notification of violations
Integration: Accounting software, general ledger, HRIS, CRM, ERP, ACH direct deposit
Reporting: Greater visibility into process and spending by category, department, employee, etc.
Certify Annual Travel & Expense Management Survey 2017
Mobile Makes T&E Easy for Employees
• Optical character recognition/auto-fill: snap photos of receipts, automatically parse data into reports
• Mobile report creation: build expense reports from the road as receipts are captured and saved
• Remote approvals: managers can review and approve reports from any location to reduce delays
Top features for mobile T&E reporting:
90%
2016
97% of business travelers carry at least one mobile device; 80% used their smartphone to plan or book corporate travel in 2014
Expedia/Egencia Mobile Index 2014
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)
$
Companies that track and apply unused tickets can save 5-8% of total annual travel budget
2015 GBTA Ancillary Fee Handbook
Automate Policy Enforcement
• Set hard/soft policy controls: spending caps, report requirements (i.e. meal attendees), vendor preference
• Eliminate duplicate receipts/expenses: automatically identify duplicate receipts, flag out-of-policy expenses
• Manage expense reporting on time: automatic report build reports, employees/manager notifications
Instant policy check via the mobile expense reporting app
Integrate Systems, Maximize Efficiency
• Accounting systems: automate key accounting functions and streamline workflow
• Corporate credit cards: direct control over employee spending, faster reconciliation
• Corporate systems: reduce data entry and errors across multiple redundant systems
• ACH reimbursement: direct deposit for more efficient reimbursement, simplified accounting
Reporting Visibility Delivers Control
Workflow: monitor people and process, approval paths, identify delays and other roadblocks
Compliance: review processed and in-progress reports, policy violations, fraudulent behavior
Spending: analyze by expense category, mileage, department, employee, and more
Improving visibility into spend is a driving force behind the switch to automation for 30% of companies
Certify Annual Expense Management Trends Report 2017
Questions?
Please continue to type your questions into the chat widget. If we run out of time to answer them here, we will follow up shortly via email.
You can also contact our presenters directly:• [email protected] • [email protected]