The Key to Efficiently Monitoring Travel & Entertainment Spend

Travel and entertainment (T&E) accounts for 10–12% of the total annual budget for business expenses, according to a report by J.P. Morgan. This means North American companies will spend a projected $186 billion on T&E in 2015. It goes without saying: an expense category of this size should not be neglected. But how do companies monitor T&E spending and ensure employees submit timely expense reports?

Companies of all sizes employ different methods of monitoring T&E. For example: there are enterprise corporations compiling reports using complex spreadsheet formulas, but there are also startups using expense management software to keep tabs on spending in real time.

Ultimately, automated monitoring is the most accurate way to keep T&E spending in check, regardless of company size. With a cloud-based software, managers can run reports for their teams, compare expenses between two sales representatives, or see how T&E spending measures against closings. Accountants can access reports showing monthly reimbursable expenses across the business, categorized by pre-defined parameters. Executives can see top-level numbers in a broad range of dissectible reports. While all of these reports may be effectively created with spreadsheets, automating the monitoring process frees up valuable time and eliminates error-prone data entry across multiple departments.

In our annual expense management trends survey, we ask a broad range of finance professionals about the largest pain points surrounding T&E management. Last year, the number one pain point was “employee failure to submit reports on time,” according to 39% of respondents (and in 2013, 46% of respondents). How can companies alleviate this recurring pain point? You guessed it: automation.

True automation means expense reports are built automatically (thus, on time) for users to simply review and submit for approval. When a cloud-based, automated system is in place, employees are prompted and reminded along the process—which significantly reduces expense report tardiness.