Expense management is the most crucial aspect in an organization. With companies spending more of their revenue on travel and entertainment expenses, following the best spend management practices will help streamline major spend challenges. Let’s take a look at few strategies that can be implemented by organizations across the world:
Parameters you consider for travel and entertainment spend will depend on your company’s culture, values, and budget. As a business owner, you have to set parameters for your employees to make them comply with your T & E policy. Also, your employees have to know how to go about planning their business trip, how to get the best airfare deals, and where to stay.
Be it budget control or fraud prevention, auditing is one of the most important phases in expense management. Around 90% of companies regularly audit expense reports to find any potential fraud and out of policy expenses. Implementing artificial intelligence in the auditing process using expense report software can help flag all the expenses that do not comply with the corporate budget.
Set up Benchmarks
Take time out and analyze the details of travel and entertainment spending on a periodic basis. By doing so, you will get to know about trends happening in the travel industry. Conducting timely reviews will help you determine the reason behind exceeding your budget threshold.
Automating Travel Expenses
Automated expense report software integrates T & E spending with your company’s T & E policy. Automation will simplify the expense reporting process and ease policy compliance.
Making travel and expense processes effective will make the lives of all those involved in the process easy and result in cost savings. This can be achieved by implementing the right T & E policy and by aligning people, processes, and technology in the right way.