If your business has been around for a few years, there's a good chance it has already been through the cost-cutting wringer. And although many businesses have seemingly exhausted all options to cut costs, companies will continue looking for new ways to control spend.
It's common for frustrations to surface regarding the lack of control over T&E spend. According to Forrester's The Power of Real Time Insight report, financial decision makers ranked T&E spend as the second most difficult expense to control. And it’s not just a C-Suite issue. Frustrations run company-wide.
Departments and individuals must answer for their own spending patterns. When answers are hard to come by, it’s common for employees to feel like they’re being asked to squeeze blood out of a turnip. And when cost overruns are combined with no ideas to fix them, the only option remaining for some companies is an indiscriminate travel freeze.
There's a better, more permanent path to expense management nirvana. To achieve it, companies must rethink cost savings.
Are you managing expenses with one arm tied behind your back?
With eighty percent of companies collecting expense data manually, it’s no wonder why companies struggle to find cost-cutting answers: the systems being used do not allow for actionable insights that facilitate control over spend.
The irony here is that most of these same companies do not realize how much they are spending on expense management itself, which is often far greater than perceived. For many companies, there are three ripe opportunities:
- Save money on the company-wide process of managing expenses
- Identify new cost-saving opportunities that remain hidden with a manual solution
- Prevent unnecessary cost overruns and out-of-compliance spending with a smarter system that enforces rules, sets preferences and enables efficient workflow in real time
What would happen if you empowered your policy and processes?
Have you ever taken a moment to follow two to three people as they navigate the expense reporting process from start to finish?
Having stakeholders describe their expense-related tasks can lead to some shocking revelations. You’ll likely learn why, despite all the expense policy updates that came about as a response to mismanagement, problems continue to surface.
Enforcing policy and proactively managing spend is an uphill battle for companies with manual expense processes.
On the other hand, policy enforcement and proactive budget management are what cloud-based solutions do best. The T & E policy is integrated with the system, meaning employees can only make decisions that are within policy, or must follow a pre-determined workflow to obtain out-of-policy exceptions.
Omnipotent control of your spend
And speaking of workflow, the mobility of cloud-based expense management allows people to perform expense-related tasks whenever, wherever it’s most convenient. For those who book travel or manage departmental budgets, making informed decisions is far easier because the current expense policy is “built in” and real-time data is always available.
Today, your company can empower the policy and the people at the same time.