By Jack DiMatteo
When you say Travel and Expense (T&E) Management, most people think Travel Management Companies. When you suggest consolidating T&E Management responsibilities, most people still think Travel Management Companies. Is it that easy? Look a little closer…
A Travel Management Company is certainly a good start. What about all the peripheral activities that also go into T&E Management? What about expense report processing, affiliated credit card programs, maintaining your T&E Management System?
All too often, responsibility for these associated areas fragments throughout the company. An executive assistant or staff accountant handles the credit card program(s). A high-level finance related Director assumes responsibility for the T&E Management system. Expense report processing is scattered between A/P, payroll, treasury and internal audit. Manual processes and handoffs compromise the T&E Management system automation capacity. All the fragmentation clouds visibility on a line item that often comprises 10% or more of an organization’s annual budget.
Does the idea of consolidating T&E Management make more sense now?
Credit card programs negotiated and selected in a silo. How does the person doing the choosing know how compatible the selected programs are with the T&E Management system? Does the newly selected program take full advantage of the company’s historic or forecasted spending patterns? What mechanisms are in place to track and ensure compliance with T&E policies? Is the expense approval process slow, cumbersome and frustrating to everyone involved? Is it easy to gather information when executive management asks?
Consolidating responsibility either internally or through outsourcing is the first step to gaining control. Spending and generating enough volume to staff internal positions may be one approach. The key is to hire dedicated and experienced travel, credit card and expense reporting experts. The goal is to see savings over and above the cost of hiring dedicated staff – based on their collective experience, expertise and ability to wring costs out of the process.
Outsourcing is another option. Even if your spend totals and travel volume justify adding staff you may still prefer outsourcing. Do you want to be in the T&E Management business? Long searches to find and hire professionals with the right skill sets are costly. What happens while key vacancies are waiting to fill? Outsourcing offers cost effectiveness, delivers expertise and provides continuous support. If your current T&E function is scattered in pieces as “part of someone’s job” then you should definitely consider outsourcing.
When you say Travel and Expense (T&E) Management, most people think Travel Management Companies. When you suggest consolidating T&E Management responsibilities, most people still think Travel Management Companies. Is it that easy? Look a little closer…
A Travel Management Company is certainly a good start. What about all the peripheral activities that also go into T&E Management? What about expense report processing, affiliated credit card programs, maintaining your T&E Management System?
All too often, responsibility for these associated areas fragments throughout the company. An executive assistant or staff accountant handles the credit card program(s). A high-level finance related Director assumes responsibility for the T&E Management system. Expense report processing is scattered between A/P, payroll, treasury and internal audit. Manual processes and handoffs compromise the T&E Management system automation capacity. All the fragmentation clouds visibility on a line item that often comprises 10% or more of an organization’s annual budget.
Does the idea of consolidating T&E Management make more sense now?
Credit card programs negotiated and selected in a silo. How does the person doing the choosing know how compatible the selected programs are with the T&E Management system? Does the newly selected program take full advantage of the company’s historic or forecasted spending patterns? What mechanisms are in place to track and ensure compliance with T&E policies? Is the expense approval process slow, cumbersome and frustrating to everyone involved? Is it easy to gather information when executive management asks?
Consolidating responsibility either internally or through outsourcing is the first step to gaining control. Spending and generating enough volume to staff internal positions may be one approach. The key is to hire dedicated and experienced travel, credit card and expense reporting experts. The goal is to see savings over and above the cost of hiring dedicated staff – based on their collective experience, expertise and ability to wring costs out of the process.
Outsourcing is another option. Even if your spend totals and travel volume justify adding staff you may still prefer outsourcing. Do you want to be in the T&E Management business? Long searches to find and hire professionals with the right skill sets are costly. What happens while key vacancies are waiting to fill? Outsourcing offers cost effectiveness, delivers expertise and provides continuous support. If your current T&E function is scattered in pieces as “part of someone’s job” then you should definitely consider outsourcing.
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