Ensuring that high expenses are not impacting company growth is an ongoing concern for business owners. In light of the recent news about state officials misappropriating funds and creating fraudulent travel expenses, businesses are also taking a longer look at their own issues with travel expense, and how this could be impacting productivity.
Travel Equals Growth
In looking at how businesses allocate their budgets, it can also become apparent where they feel the strongest channel for growth exists. On an average, companies spend as much as 20% of their budget on travel expense costs, which also indicates that there are returns being made through these actions. However, the general percentage of the budget that is used, and what is actually being gained may not balance out.
In looking at solid figures, the majority of companies spend less than $100,000 on travel expense costs every year. While this is not a figure that should raise any warning signs, it should still be noted that 18% of companies spend more than $5 million on travel expense costs annually. Although the size and revenue of the company should be considered in evaluating these numbers, this is still a significant cost burden.
The question regarding allocations to travel expense costs then becomes, is the investment worth the return?
Watching Over Work
For any company, the enforcement of policies for travel expense costs is a necessary part of remaining solvent. However, in many cases, the process for managing travel expense costs is highly inefficient, which is what can lead to overlooking questionable charges, or simply being unaware of the high costs of travel.
Businesses have found that the use of automation and expense report software has greatly facilitated the ability to manage travel expense costs, and to monitor other expense issues. The result is that the investment in sending employees on travel can now be balanced with the actual returns that are received.