However, manually managing expenses can sabotage even the most robust corporate travel policy. It is a tedious and error-prone process that can lead to inaccurate reports and delayed reimbursements. Not to mention the risk of fraud.
The risks of manual expense management on travel policy compliance
Manually managing expenses is risky and time-consuming. It involves collecting receipts (when they are not lost), inputting data into spreadsheets, and manually reviewing and approving expense reports. This process is rife with mistakes, and these can cause delays in reimbursement as well as inaccurate reporting.
Besides, manual expense management leaves a company open to the possibility of fraud. Employees may intentionally (or not) falsify expenses. This results in non-compliance with the corporate travel policy and can potentially cost the organisation a significant amount of money.
To avoid these risks, organisations should consider automated expense management solutions that streamline the expense reporting process. Automated expense management systems offer several advantages over manual processes, including improved accuracy, faster reimbursements, and better expense report compliance tracking.
Prioritise cost management
Cost management is an essential aspect of an effective corporate travel policy. Organisations should set clear guidelines on allowable expenses, travel booking procedures, and cost-saving measures. By doing so, employees can make informed and cost-effective decisions when traveling for work.
Organisations should further encourage employees to book travel arrangements in advance and choose reasonably-priced accommodation. Employees can also be expected to use public transportation instead of taxis and to share rides with colleagues. These small steps can add up to significant cost savings for the organisation.
In addition, automated expense management solutions can help organisations optimise their travel budgets. By automating expense reporting, organisations can gain visibility into their travel expenses and identify areas where cost savings can be made.
Ensure expense report compliance
Expense report compliance is another critical aspect of an effective travel policy. Organisations must ensure that their corporate travel policy is in line with legal, ethical, and organisational standards. The travel policy should be communicated clearly to employees, and regular audits should be conducted to ensure compliance.
The travel policy should include guidelines on allowable expenses and travel booking procedures (for more on this, read our article on creating an effective travel and expense policy). Employees should be made aware of these guidelines and encouraged to comply with them. Compliance tracking tools can help organisations monitor employee compliance and identify areas where further education or training may be required.
Enhance traveller experience
The traveller experience is an essential consideration when implementing an effective travel policy. Travelers should be able to make travel arrangements easily and conveniently, with minimal disruptions to their work schedule. The travel policy should prioritise the safety and comfort of employees when making travel arrangements. A cost-effective way of ensuring your travel policy is enforced is by integrating your travel booking tool with your expense tool.
Organisations should consider the availability of amenities such as Wi-Fi, fitness centres, and healthy food options when booking accommodation. Likewise, travellers should be given adequate time to rest and recover after long flights or extended periods of travel.
Moreover, automated expense management solutions can help enhance the traveller experience. Automated expense management systems offer features such as mobile and real time expense reporting with an app. These make it easier for travellers to manage their expenses while on the road.
Automated expense management solutions can play a significant role in implementing an effective corporate travel policy. By automating the expense reporting process, organisations reduce the risk of errors and fraud, improve accuracy and compliance tracking, and provide a better experience for travellers. With the right automated expense management system, organisations can streamline their travel policy and create a culture of compliance and cost-consciousness.
