Delivering earnings predictability, owning corporate governance, and supporting productivity across the enterprise are among the top challenges faced by financial professionals. Where do financial professionals even begin defining a strategy to embrace these opportunities? The answer to that question may raise more than a few eyebrows: best-in-class travel and entertainment (T&E) expense management

1. Discovering the Strategic Gold of Effective
T&E Expense Management
Windy City Summit
May 26, 2016

2. Presented By
2
Ernie Humphrey, CTP
Chief Financial Officer
360 Thought Leadership Consulting
Ernie Humphrey currently serves as the CFO of
360 Thought Leadership Consulting. Ernie is a
proven strategy and financial professional with
15+ years of experience. He has diverse industry
knowledge as a seasoned corporate practitioner,
a leader at the largest association for financial
professionals (the Association for Financial
Professionals (AFP)), and as a driving force
behind the development of the largest online
community for senior level financial professionals
(Proformative). During his career he has
supported and delivered thought-leadership in the
arenas of finance, treasury, accounting, and
related disciplines. Ernie has demonstrated
success in building consensus, embracing
change, driving results through innovation,
business development, and community building.

3. Learning Objectives
• 2016’s leading technology, trends and best practices in travel and
entertainment expense management
• The top system features companies are using to effectively manage T&E
expenses across the enterprise
• How improving the T&E process at your company will positively impact the
bottom line
• The ways excellence in T&E Management impacts productivity for
employees on the road and at the office
Today’s presentation will help you understand:
3

4. Today’s Agenda
• Why effective T&E expense management matters
• Approaches to improving expense reporting
• Proven strategies for effective T&E expense management
• Considerations when switching systems
• Closing thoughts and additional resources
4

5. T&E Spending is Substantial
U.S. business travel
spending 2015
Estimate: GBTA 2015
$310b$1.25tglobal business travel
spending 2015
INTERNATIONAL DOMESTIC
$2,502 $1,002
Average base costper business trip
for air, hotel and car rental
Travel Leaders Corporate 2015
5

6. 25%
of all U.S. companies
spend +$1MM on T&E
expenses annually
PayStream Advisors 2015
of total annualbudget
Aberdeen Group 2015
6-8%
T&E Expenses: More than Relevant
6

7. Why T&E Matters
• T&E expense report processing impacts all who travel on
company business; sales professionals to senior management
• Inefficient T&E expense report processing negatively impacts
employee productivity up and down the corporate ladder
• Ineffective T&E expense report processing and management
negatively impacts the bottom line
• Success in forecasting T&E expenses can translate into
improved earnings predictability
• Establishing an effective controls framework to tame T&E
expenses can be a template for expense management and
corporate governance across the enterprise
7

8. With T&E expenses at 8% of total
budget, how much is it costing
companies to process each report?

9. Average cost to process a single expense report:
$6.85
fully automated
$17.31
semi-automated
$26.63
manual
PayStream Advisors 2015
28%
19%
5%
48%
Under $7 per report
$10−$20 per report
$25 or more per report
We do not track these costs
Reference: Certify’s Annual Travel & Expense Management Survey 2016 9
Expense Reporting Costs

10. • Hard costs for paper, printing and postage
• Hours to create, review and approve reports
• Time required for reconciliation and reimbursement
• Storage fees to archive expense reports
• Lost productivity
10
Reducing processing costs is the #1 T&E improvement
for 48% of all best-in-class companies (Aberdeen Group 2015)
Hidden Costs of a Manual System

11. Leading frustrations for T&E program administrators:
11
50%
employees
losing receipts
45%
employee’s failure
to submit reports
on time
38%
time it takes to
reconcile, review
and approve
30%
reviewing for
policy violations
28%
errors on
the report
Reference: Certify’s Annual Travel & Expense Management Survey 2016
Top Expense Management Pain Points

12. To what degree are companies
leveraging technology to address
pain points and inefficiencies?

13. Web-based solution (Concur, IBM, etc.)
Microsoft Excel/spreadsheets
Pen and paper
Homegrown solution
ERP/accounting package (Oracle, SAP, etc.)
T&E Systems by Company Size
13
MANUAL SYSTEM USAGE
70% small businesses | 26% enterprise
22%
55%
10%
5%
8%
37%
37%
9%
4%
13%
46%
16%
4%
6%
28%
SMALL
BUSINESS
MID-SIZE
BUSINESS ENTERPRISE
Reference: Certify’s Annual Travel & Expense Management Survey 2016

14. Improving Expense Management
14
Are you planning to switch or currently in the process of
evaluating vendors for a new web-based system?
37%
SMALL
BUSINESS
46%
MIDSIZED
COMPANIES
53%
ENTERPRISE
Reference: Certify’s Annual Travel & Expense Management Survey 2016
62% of all companies planning to make the
switch will do so in the next 12 months

15. Why are companies
looking to automation?

16. Driving Force Behind the Switch
16
25%
28%
32%
40%
66%
Reimburse employees faster
Improve employee compliance rates to corporate
travel policies
Gain reporting and analytics around T&E spend
Provide expense system accessibly from
anywhere (online, mobile)
Simplify the expense reporting process for
employees and managers
Reference: Certify’s Annual Travel & Expense Management Survey 2016

17. Expense Management Automation
17
• Cost savings: reduce costs in time and materials
required to process expense reports
• Process efficiency: eliminate data entry and
errors, improve administrative reporting
• Increased productivity: mobile and cloud-based
accessibility simplify expense management
• Policy compliance: integrate company T&E
policies and spending controls
Why do organizations turn to automation?

18. You Can’t Manage What You Can’t See
18
• Spending: analyze company spend by expense
category, department, individual employee,
monthly reimbursements, etc.
• Compliance: review processed and in-progress
reports, policy violations, identify risk and
offenders, and improve company compliance rates
• Workflow: monitor people and process;
documented path of approvals ensure expenses
are reviewed/approved according to guidelines
Actionable insights into key spending and process metrics:

19. Why does T&E process
automation matter?
With a more streamlined process, expense report
automation increases employee productivity by 29%.
AberdeenGroup 2014
74% of companiesthat automatetheir expense
managementprocess achieve full ROI in one year or less.
AberdeenGroup 2014
Companies using web-based expense solutionsdedicate
83% less funds to processing than with other methods.
CertifyAnnual Travel & Expense Management Survey 2016

20. The must-have features for a T&E
expense management solution

21. Must-Have Expense Reporting Features
21
Automation: Expense report creation, workflow process and
approvals, direct credit card feeds
Mobile Applications: Smartphone-enabled receipt image capture,
mobile report creation and approval, and policy tools
Compliance: Duplicate receipts/expenses, category spending
limits, automatic notification of violations
Integration: Accounting software, general ledger, HRIS, CRM,
ERP, ACH direct deposit
Reporting: Complete visibility into process and spending by
category, department, employee

22. Corporate T&E Policy Compliance
22
85%of all companies report
having a written
T&E policy in place
73%of those companies
are manually reviewing
for policy violations
Reference: Certify’s Annual Travel & Expense Management Survey 2016
Manual policy review is inefficient,
prone to error and fraud

23. 6%
31%
42%
20%
26%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
T&E policy is not
enforced
Employee is
responsible
Manager manually
review each expense
Manager manually
review, checking only
high value expenses
T&E system
automatically flags
out-of-policy
violations
Enforce T&E Policy Compliance
23
53%
of companies on a
web-based system
Reference: Certify’s Annual Travel & Expense Management Survey 2016

24. Expense Report Fraud
24
• Expense fraud accounted for nearly 14% of all occupational fraud
with a median loss of $30,000
• Businesses with fewer than 100 employees have a 28% higher
median fraud loss than those 100+
82%
Oversight Systems 2014
Association of Certified Fraud Examiners 2015

25. 25
How companies set T&E policy maximums and control meals,
hotel and airfare spending:
25%
25%24%
20%
6%
We do not have expense category limits
Based on internal historical spending
Follow U.S. GSA per diem rate
guidelines
Determined by annual budgeting process
Other
Reference: Certify’s Annual Travel & Expense Management Survey 2016
Expense Category Spending Limits

26. 26
Top 5 HighestExpenseAmounts of 2015:
$35,000 for a dozen cases of wine
$25,000 house rental for one day
$20,000 private plane rental
$18,000 night out in Las Vegas
$4,000 for one bottle of champagne
Reference: Certify’s Craziest Expenses Survey 2015 (non-customers)
A Few Examples of Out of Bounds Expenses

27. The impact of an investment in
improving T&E expense management

28. Best-in-class expense management
practices deliver an 87% or greater
compliance rate to T&E policies.
AberdeenGroup 2015

29. Effective T&E expense
management strategies

30. Effective T&E Strategies
30
STRATEGIES OUTCOMES
Mobile Accessibility
Reduce costs, simplify the reporting process, and
improve productivity for employees and managers
Systems Integration
Streamline data entry, reduce errors and improve
efficiencies in backend processing functions
Automated Controls
Automate policy enforcement, streamline workflow
process and control spending
Reporting Visibility
Leverage real-time access to detailed spending
metrics and key workflow analytics

31. Simplify the Reporting Process
31
• Optical character recognition/auto-fill: snap photos
of receipts, automatically parse data into reports
• Mobile report creation: build expense reports from
the road as receipts are captured and saved
• Remote approvals: managers can review and
approve reports from any location to reduce delays
Mobile OCR and AutoFill
Mobile lowers processing costs by 65%,
improves reimbursement rate 40% (Aberdeen Group)
Top mobile features for greater efficiency:

32. Integrations: the Key to Efficiency
32
Expense
• Accounting systems: automate key accounting
functions and streamline workflow
• Corporate credit cards: direct control over
employee spending, faster reconciliation
• Corporate systems: reduce data entry and
errors across multiple redundant systems
• ACH reimbursement: direct deposit for more
efficient reimbursement, simplified accounting

33. 33
• Make policy automatic: apply built-in spending caps,
reporting requirements (meal attendees, receipts, etc.),
vendor preferences, and more for better compliance
• Eliminate duplicate receipts/expenses: automatic
system reviews identify duplicate expenses, flag out-of-
policy expenses, reduce fraud, and save money
• Seamless travel booking: integrated travel booking
ensures best rates and efficient expense reporting, plus
pre-trip approvals to maximize spending control
• Manage expense reporting on time: set a schedule to
automatically build reports, notify employees and
managers, and submit expenses (specific to Certify)
Automate Policy and Spending Controls

34. Example Implementation Timeline
• 57,000+ expense report users in North America (U.S. & Canada)
• User-driven selection process; 9 out of 10 participants chose same vendor
• Integration with corporate credit cards, HRIS, single sign-on, accounting software
Go Live with
Certify
MAY OCTOBER
Evaluate
vendors Go-live: Oct. 1, 2014Select vendor
Launch
implementation
57k U.S. and Canadian
users go live—6 weeks
ahead of schedule
AUGUST
34

35. 1. When is the last time we did a thorough review of our T&E policies?
2. What is the rate of compliance with our T&E travel policies?
3. What are we doing to actively manage our T&E expenses?
4. How do we benchmark our T&E spend?
5. What is the average time it takes to reimburse an employee?
6. What is the current level of automation in our T&E process?
7. Are we using, or have we looked at a cloud-based T&E expense management solution?
Seven Questions to Ask at Your Company
35

36. 1. Identify the opportunities
• Reduce costs, mobile/remote access, compliance, reimbursement times, etc.
2. Identify technical requirements
• Define and align requirements from IT, Accounting, HR and other stakeholders
3. Evaluate vendors
• Weigh requirements against vendor features and capabilities
• Product demos and user reviews on g2crowd.com, capterra.com
4. Build your case
• Hard and soft dollar benefits
• Estimated time to recoup costs (ROI)
5. Implement your solution
• Make sure your vendor owns IT and integration requirements
36
Five Steps to Improving T&E Expense Management

37. 1. Review your company’s T&E policies; if you do not have them, create them
2. Improve the travel IQ of employees and take measures to enforce policies
3. Arm travelers with better technologies to simplify expense reporting
4. Automate key components of the expense management process
5. Benchmark company T&E spending regularly
6. Leverage analytics to improve intelligence and data
37
Specific Actions to Set the Foundation for
Effective T&E Expense Management

38. Thank You!

39. Additional Resources

40. • T&E Policy: 10 Best Practices to Eradicate Inefficiencies that Impact the Bottom Line
• Defining Best Practices for Control, Effective Forecasting, and Impacting Productivity
Across the Enterprise: Unlocking the Strategic Value of T&E Expense Management
• 10 Steps to Building & Delivering an Effective Business Case: Owning T&E as the
CFO (Part I)
• 10 Steps to Building & Delivering an Effective Business Case: Owning T&E as the
CFO (Part II)
Additional Resources
40

41. • Why T&E Should Matter to CFOs (Part I of II)
• Why T&E Should Matter to CFOs (Part II of II)
• The New Frontier of T&E Expense Management: 7 Tech Features to Tame the
Beast
• Out of Control T&E Expenses: Taming Your T&E Beast
• 7 Red Flags Your T&E Expenses are Out of Control
Additional Resources
41