Travel expense management is one of the most crucial aspects of an organization’s business spends. With companies spending nearly 10-12% of their annual revenue on travel and entertainment, following a safer strategy and the best of the industry practices will help streamline these spends.
Let’s take a look at some strategies that organizations across the world are vouching for:
1. Travel Parameters
Your company’s cultures, values and budget should dictate the parameters for your travel and entertainment spends, while accounting for your business dynamics.
2. Travel Policies
Make sure your employees know how to go about planning their business travel: how the tickets will be booked, where they’ll be staying, and how they can plan their meals and leisure.
3. Audit guidelines
Audit with purpose, be it budget management, fraud/loss protection or auditing to test specific controls and processes. According to Aberdeen Group, 88% of all best-in-class companies regularly audit expense reports compared to the industry average at 63%.
4. Benchmark areas of spends
Take time out at regular intervals to analyze the details of travel and entertainment spending, and conduct timely reviews if and when budgets are exceeded beyond the threshold.
5. Travel expense automation
Let your employees breathe easy. Integrate T&E spending with your organization’s expense policies. Automating your business spends will ease policy compliance and streamline expense reporting as well.
Increasing T&E management effectiveness can make the lives of all company employees who travel easier and result in significant cost savings. This requires the proper alignment of people, process and technology, and can definitely be achieved by bringing into place the right T&E policy that represents your organization.