Strategic Approaches to Travel and Entertainment Expense Management

Strategic Approaches to Travel and Entertainment Expense Management

ADP Canada ADP is the leading provider of HR, payroll and time and attendance management services. § More than 60 years of expertise § Services 50, 000 Canadian businesses § Pays one in four Canadians in the private sector § One of five US non-financial companies with a AAAcredit rating 2

ADP Canada Ben Ferraro Accumulated over 10 years of expertise in working with clients to improve organizational efficiencies while leveraging new technology. Holds a Bachelor's degree from the University of Calgary, major in Economics and minor in Commerce. Joined ADP in 2007 as a Specialist in expense management business processes in Western Canada. 3

Typical Manual Expense Management Process Book Trip (Web, Agent) Create Expense Report Re Re tur -s n / ub m it Accounts Payable GL Entry r ie ur o Take Trip / Incur exp C Printed Exp. Report 4 Approval Manual Audit Reimburse via cheque

Challenges with Manual Process Difficult to enforce corporate travel & expense policy Manual data entry is inefficient, redundant, and leads to errors Workflow is disjointed and difficult to track expense report status Document storage can be expensive and difficult to locate 5 Long Reimbursement time Limited ability to run meaningful reports on T&E spend

Why Automate? T&E is the 2 nd largest controllable expense "…The second-largest controllable expense is Travel & Entertainment (T&E) Expense… The benefits of automating are immediate and come from areas such as policy compliance, cash management and vendor-negotiated discounts. ” Source: The B 2 B Analyst by U. S. Bancorp Piper Jaffrey 6

Typical Manual Expense Management Process Book Trip (Web, Agent) Create Expense Report Re Re tur -s n / ub m it Accounts Payable GL Entry r ie ur o Take Trip / Incur exp C Printed Exp. Report 7 Approval Manual Audit Reimburse via cheque

Automated Travel and Expense Management Solution Book Trip Online Booking Take Trip Complete Expense Report Ex. PManager Expense Reports Broad Inventory Approval/ GL Entry Payment Reporting Electronic Approval Employee Payment Reporting Services Finance System Integrated Rapid, Electronic Flexible Reports Reimbursement to Employee Executive Dashboards Embedded Policy Corporate Card Paperless Easy to Use Pre-population and e. Receipts Manager Approval Automatic GL Import Including Receipts Electronic Status 8 Automatic Distribution

Top Airline Vendor Spend Vendor United Airlines Expense Amount (reimbursement currency) $48, 991. 06 American Airlines Air Canada Continental Airlines Alaska Airlines $5, 727. 29 British Airways $5, 202. 02 Summary 9 $8, 503. 68 $79, 978. 33 $5, 865. 28 $5, 689. 00

Top Exception Violators Employee Number of Exceptions Anderson, John 1 Anderson, Martin 3 Beers, Gary 24 Daniels, Jennifer 29 Dean, John 3 Faye, Terry 43 Francois, Tara 0 Galworth, Jack 9 Hamilton, Michael 1 Henson, Todd 51 Johnson, Kris 0 Summary 10 164

Best Practices For Automating The T&E Process § Create a T&E policy then build rules in the solution § Generate regular reports to show T&E spend § Integrate with financial system (mapping) § Leverage reports to negotiate vendor discounts § Integrate travel booking and expense reporting 11

Best Practices Integrating Travel and Expense Processes is an emerging best practice § Thwart out of policy expenses before they occur § Ensure use of preferred suppliers § Improve service levels to your employees 12

Benefits of Automating T&E Process § Reduces cost § Decreases expense report processing time by 46% when done electronically 1 § Reduces errors, eliminates re-keying § Improves compliance which lowers T&E Costs § Improves business processes § Allows online review and approvals, full audit trails § Improves reimbursement cycle to as little as 5 days § Integrates with the GL, provides automatic reimbursement to employees § The Gartner Group estimates a 5% reduction in operating costs is equal to a 30% increase in sales 2 1”Travel & Expense Management…”, Aberdeen Group 2008 2 “Q&A for Travel Expense Management Software and Implementation”, The Gartner Group 2008 13

Benefits of Automating T&E Process § Increases control § Greater control over T&E spend (18% increase in compliance 1) § Comprehensive 360 o reporting capabilities 1 § Mitigates business risk § Reduces fraud (13. 2% of fraud cases involve T&E reimbursements with a median loss of $25, 000 each instance)2 § Improves compliance (companies with external controls in place to manage SOX compliance have greatly reduced median losses – up to 89. 1%)2 1 “T&E Lifecycle…”, Aberdeen Group 2008 2 “ 2008 Report to the Nation on Occupational Fraud and Abuse, Association of Certified Fraud Examiners, 2008 14

To Learn More For more information about automated expense management solutions or how to improve other business processes, Call 1 -866 -228 -9675 or visit adp. ca 15

Strategic Approaches to Travel and Entertainment Expense Management