According to a study by Business Travel News (BTN) more than 83% of 309 full-time workers surveyed said that business travel was “important” or “very important” to their job success and more than 84% said it was “important” or “very important” to their job satisfaction. Employers are also realizing that business travel is essential to their growth, especially for small and medium-sized companies.
One of the challenges that small and medium-sized businesses face when scaling up is knowing how to balance expense management and business travel reporting while maintaining a growth-focused expansion. This growth can often be achieved through making connections by traveling to and attending conferences, or going to networking events and meetings. It may feel like a stretch at first but it’s without a doubt the best way to grow sustainably year over year.
The importance of travel expense management
Expense management is about budgeting, tracking expenses and having a clear reimbursement process. To do this it’s important to have a clear travel and expense policy.
Don’t have an expense policy yet? Get our helpful guide to get started
Having a travel expense management process in place will make the difference whether you can stay on track with your expenses or not. Travelers will be able to better understand what’s within policy and what’s not, and as a business you will be able to make sure each expense is justified and that these expenses don’t break the bank and that they are accounted for.
Better management of travel expenses helps you control costs so that you can ensure cash flow (which can be difficult in small and medium-sized businesses) and financial stability. This also will help ensure compliance with tax regulations and accurate reporting at the time of closing out the year.
Challenges with travel expense management
As a small or medium-sized business you might face challenges due to limited financial resources and also limited human resources, which forces you to do as much as possible with the human resources you have on staff, and the budget that is allotted for the year.
Another challenge faced with travel expense management is having to deal with manual processes such as tracking expenses and submitting expense reports. If you don’t have the right tools in place, it may be difficult to enforce your travel and expense policies, which may lead to spending out of budget or without control.
Strategies for effective travel expense management
Here are three effective ways to ensure that travel expense management is easy, streamlined and incorporated into all your processes so that you stay on budget.
Automation tools
One of the most effective ways to manage travel expenses is by introducing tools and software that can help streamline your expense management. One such tool is GetGoing, a travel and expense management platform that does it all. It helps ensure T&E is straightforward and you also have access to expert support when you need it.
Clear policies
Having clear travel policies and guidelines is without a doubt what you need to ensure you and your travelers stay on track when it comes to expending business trips. Clear policies lead to expenses that are within budget, and there’s nothing like the hassle of having to compensate when you go off track.
Train employees
Make sure employees know the importance of proper expense reporting and adhering to policies. The clearer the process is, the less bumps there will be in the road. Trained employees are better set up to make educated (and budget-conscious) decisions.
Benefits of effective travel expense management
Cost savings, improved productivity and scalability are some of the benefits you will gain by having a clear travel expense management process. You can make sure your employees remain productive throughout the travel process, not having them waste their precious time in expense reports and expense tracking. Having a clear policy also leads to cost savings because everyone will do their best to stay on policy and approvers will be able to deny costly trips that don’t push the company’s strategic objectives forward.
Managing travel expenses effectively supports business growth and scalability, knowing that if your staff travels more, or the need to travel increases, you will have the processes in place so that you can support business growth and ultimately scalability.
Adopting effective travel expense management practices can aid in your business growth, and as a small and medium-sized business, the smoother your processes, the better set up you will be for success.
Ready to get started?