If you have a lot of employees traveling for work, you already know that there’s a carnival of sorts going on with business expenses. Between company credit cards being used, personal expenses that need to be reimbursed and corporate funds used for per diem expenses and other purposes, a lot of money of money moves around over the course of a business trip. But how much of this spending is actually within the parameters that you’ve set for your travel expenses? Do you have parameters and policies in place?
Here are a few of the ways that you can investigate whether your travel company expenses are where you want them to be.
Investigate Employee Awareness
You may know what the travel/entertainment policy is for the company, but how many employees do as well? It always pays to conduct a “headcount” to see what policy awareness is like in your company and, if the numbers are low, it’s time to introduce more training to get others on board.
Do you know what your company’s total travel expenses are? Do you know how that expenditure compares with other companies of a similar size in the same field? Other companies may have much lower costs compared to you, but you may be unaware of this and thinking the expenses you are incurring are actually normal. Educate yourself on how other companies are doing when it comes to travel expenses.
Know Your Processing Costs
Do you know how much it costs in your company to process expense reports in terms of time and expense? 80% of companies are unaware of the actual processing costs for expense reports, making it difficult to assess effectiveness or improvement.
Clock Your Time
Time is money. If your employee are submitting expense reports late, taking up too much time to do so, or your accounting or finance staff create a backlog of work once they get stuck on processing and approving expense reports, all this time is also money that could have gone towards other goals.
Automate Your Process
By bringing in an automated expense report software system like ExpensePoint, you can add more efficiency, less time, and more accountability and tracking tools to your expense report system. This makes it much easier for you and financial staff to keep track of expenses and make more informed decisions about how to conduct your travel and entertainment policies for employees.