Travel Expense Accounting Market to Reach $2.5 Billion by 2020
Source: PR Newswire
RALEIGH, North Carolina, September 26, 2019 - The travel expense accounting market is expected to grow at a steady rate, with 37 percent adoption of web-based travel expense (TE) solutions, according to Beroe Inc, a procurement intelligence firm. 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, resulting in the adoption of web-based expense management.
TEM (Travel Expense Management) software has not yet been adopted in emerging economy regions such as APAC, and are expected to see rapid growth in the next five years. The most preferred TEM capabilities by organizations and travelers are simplicity/ease of use for employees (65 percent), expense management automation (50 percent), integration with HR/finance systems (41 percent), and mobile applications/accessibility (36 percent).
Beroe, which is based in North Carolina, further stated that procurement experts can access this report on its recently launched market intelligence platform Beroe LiVE: live.beroeinc.com
Traditionally, large companies have focused on compliance and cost savings in travel expense management. However, in recent times, the focus has shifted onto the travel and an end-to-end solution that gets data from different sources and creates the expense solution in real time, reducing the effort required from travel.
Manual data entry and insufficient processes account for 37 percent of the challenges faced by employees in expense management, followed by a lack of visibility into spend which is responsible for 22 percent of challenges faced by employees. Other challenges include an inability to enforce corporate travel policies, lengthy reimbursement cycles and an increase in overall T&E expenses.
- 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.
- Average expense report processing cost for manual processing is approximately $26.63, for partial automation is $17.31 and for full automation is $6.85.
- New trends in the TEA (Travel Expense Accounting) industry include AutoFill (Parsing) technology, automated expense report creation with scheduled build days, automated approval workflows, and cloud-based expense management.
- Medium-sized companies have started adopting TEA tools, as they repeatedly look to identify cost-saving opportunities and enhance operational efficiency.
- The TEM system should be linked to the employee travel compliance policy, generate reports that help in contract management and supplier negotiation, reduce time and cost, and automate T&E processing.
- Further efficiencies can be achieved through streamlining of travel booking, automating the creation of expense reports, simplifying administrative and financial reporting, and expediting employee reimbursement.
The research methodology adopted for the report included:
- Experts with twenty years of domain experience
- Interaction with buyers
- Inputs from supply chain partners
TEM suppliers can be distinguished based on a low cost of acquisition, maintenance, support and upgrade, high staff productivity, low cycle time, business intelligence, real-time reports, and analytics. Companies with large T&E spend typically use a single supplier to reduce the cost of vendor management, system integration, and user training.
The report also includes:
- Overview of TEM Market
- Travel Expense Management Systems Outlook
- New Developments and Trends in TEA Industry
- Key Functionalities
- TEM - Challenges and Benefits
- Best Practices Adopted by Large Companies
- Guidelines for Benchmarking TEM Systems
- Type of supplier
- Number of suppliers
- Other Best Practices
Supply Market Analysis:
- Criteria Used to Shortlist Suppliers
- Supplier Landscape
- Top Suppliers who can provide T&E Accounting Tool
- Supplier Profiling
- Average Cost to Process and Expense Report
About Beroe Inc.:
Beroe is the world's leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.
To learn more about Beroe Inc., please visit: http://www.beroeinc.com