Business mobility, globalization, and international expansion are all contributing to the increase in travel expenses for many businesses. In fact, it was estimated that 2017 would see a 3.8% increase in business travel costs by The Global Business Travel Association. For organizations that are already struggling with cost management, this can place even more pressure on business owners and managers.
That being said, there are some common categories which travel expense management challenges fall under. To regain control of your business spending, make sure to overcome the following:
Poor Expense Visibility
Offhand, does your business know the top spending categories for your travel expense accounts? Or the average amount of money employees spend daily on food while traveling? Without this visibility, you can miss important insights and be overspending. Having employees use travel prepaid debit cards from Emburse will ensure that all expense categories are monitored and tracked in real-time and that funds can only be spent after the amount has been preapproved by a manager.
Delayed Employee Reimbursement
If you reimburse employees for out of pocket travel expenses, how long does it take on average to do so? Delayed employee reimbursement can leave staff hesitant about taking business trips or build resentment within your organization. If the issue is employees taking too long to submit expenses, set a time limit for how long employees can submit receipts and necessary paperwork. Another way to reduce the time-consuming process of expense reimbursement is by using travel prepaid debit cards. The funds need to be pre-approved in advance and Emburse’s software will automatically capture a copy of the receipt for reporting purposes.
Having travel expense policies that are difficult to understand or are confusing can cost your business more money in the long run. If an employee is uncertain whether something falls under an approved category of spending, they may accidentally charge unauthorized purchases.
All common travel costs should be clearly documented. Also, if your business has a discount or partnership with particular hotels or restaurants, make sure that your employees are aware. Employees should be able to easily access your travel expense policy on the road so that they can verify if an expense is acceptable if in doubt.
For more information on how your business can better control travel expenses, contact Emburse today to arrange a demo of how we can help.