Automated travel and expense management – once only seen as necessary for large enterprises – is increasingly being adapted by small and medium-sized organizations. Concur recently sponsored research from Aberdeen Group regarding how small and mid-sized companies manage T&E expenses. The main, overarching theme found in the study? Travel-related expenses equate to nearly seven percent of a mid-market organizations total budget.
Now, more than ever, mid-sized organizations realize the importance of T&E management. The proof? Sixty-two percent of mid-market organizations view expense management as a moderately-to-highly strategic internal function.
The biggest expense management challenges for the mid-market is limited visibility into T&E spending (56 percent of companies surveyed), followed by failure to monitor/audit expense reports (41 percent) and frequent instances of non-compliant travel (35 percent). All factors that can be helped through T&E expense management automation.
For the average mid-market company:
- It costs $27.86 to process a single expense report (20 percent higher than other companies)
- Compliance to corporate travel policies is 78 percent
- It takes 8.1 days for expense reimbursement (10 percent longer than other companies)
So what do all of these data points mean? SMB’s are slowly adapting to new technologies. Whether it’s automated solutions or mobile apps, mid-sized businesses have their heads in the clouds. And, we’re talking about cloud computing, of course.
Want to learn more? Read The Mid-market Expense Management Program from Aberdeen Group.