Travel Expense Management Systems – Outlook
Companies are looking to leverage efficiencies in the workplace and reduce the burden of manual T&E reporting on business travelers and expense report administrators. Reducing expense report processing cost is the top reason companies start adopting web-based expense management.The expense management practices used by companies today range from simple pen and paper to Excel spreadsheets to cloud-based automation and ERP systems. Each approach offers its own set of benefits and limitations, depending on the scope of an organization’s T&E program and expectations for control, reporting visibility, and automated functionality.
TEM – Overview
TEM solution providers recognize the need to standardize the expense reporting process, while also improving the employee experience when completing reports. Through dynamic automation tools, TEM solutions consolidate reporting tasks, reduce reliance on paper-based processes, and improve expense management visibility—all while providing advanced business intelligence and analytics tools to proactively control costs.
- A tool to book airfare, hotel reservations, and transportation through approved or preferred vendors only
- This results in cost saving and increase volume-based discounts and frequent traveler rebates
- Saves time & faster approvals: Automating the reporting process saves time and produces faster approvals from managers and reconciliations from employees
- Mobile support
- −Offered by today’s TEM solutions, enabling on-the-go managers to stay on top of expense approvals via smartphones, tablets, or any device with e-mail connectivity
- −Results in shortened processing time for reimbursements, thus increasing employee satisfaction and productivity
- Policies & Limits: Corporate travel policies, preferred vendors, and spending limits are all incorporated into the pre-trip authorization process
- Notifications: The TEM system sends notifications to employees that have booked outside the company’s spending limits, saving valuable time for both employees and approvers
- Accurate expense reporting is vital for controlling T&E spend
- Modern TEM solutions automate expense reporting by pre-populating expense reports from corporate credit card transactions and electronic receipts
- This eliminating a time-consuming and error-prone manual entry process
Overview of T&E Management (TEM) Market
- Most large companies deploy TEM software to manage and audit expenses related to travel and entertainment initiated by employees
- The software increases visibility and helps control and monitor expense reports, which would, in turn, streamline the business process and prevent fraud and human error.
- Mobilization: Smartphones have become more integrated in our daily lives. Uninterrupted connectivity is a compulsion, and there is a high demand for apps that execute and track expenses
- Transparency: The need for transparency and visibility increases when transactions involve company funds. Expense management tools help corporates to understand their spending patterns and trends, from both the individual employees and from the company as a whole
- Mid-Market: Medium-sized companies have started adopting TEA tools, as they repeatedly look to identify cost-saving opportunities and enhance operational efficiency
- Reduced Manual Expense Entry: Discarding the practice of manual expense entry helps maximize efficiency. Reports are completed more quickly, with fewer errors
- Business Travel in Emerging Markets: TEM software has not yet been adopted in regions, such as APAC, and are expected to see rapid growth in the next five years
TEM – Key Functionalities
Traditionally, large companies have focused on compliance and cost savings. In the recent times, their focus is more on the traveler and an end-to-end solution that gets data from different sources and creates the expense solution in real time, which reduces the effort required from travel.
- Companies using web-based automated expense management systems have access to a number of features and data integration services that significantly improve the reporting experience overall
- Efficiencies can be achieved through aspects, such as streamlining travel booking, automating the creation of expense reports, simplifying administrative and financial reporting, and expediting employee reimbursement.