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Despite Travel Rebound Optimism, 58% of Businesses Have Outdated or No Travel and Expense Policies
SEATTLE, Wash., Jan. 30, 2023 /PRNewswire/ — Centera software company helping businesses gain visibility into and manage employee spending, today released insights from its fourth annual Expense Management Trends survey, revealing that despite an uncertain economic environment, over a third of respondents (36%) plan to spend more than $250k annually on travel, with 16% expected to spend over $500k. Other findings include the need for updated expense management checks and balances, as businesses remain plagued by outdated processes that make cost control and budget compliance difficult in challenging economic times.
Corporate Travel Rebound Ahead In Spite Of Unsettled Macro Environment
A historically difficult cost to control, travel is typically the second highest business expense for companies behind payroll. Looking ahead, a 2022 poll from the Global Business Travel Association shows a rebound in domestic business travel compared to pre-pandemic levels, estimating an almost full recovery (63%) compared to 2019. Data from Center’s research validates the rise in travel spend based on the following:
- Half of survey respondents (50%) expect business travel to increase in the next 1-3 years
- Just over one third (36%) are spending more than $250k per year on business travel
- 16% spend $500k or more per year on business travel
Outdated T&E Policies Create Complexity
Though business travel is on the rise, survey respondents believe they do not have clearly defined T&E policies. The lack of policies creates confusion about what counts as a business expense, what the spend guardrails are, and how to track expenses accurately. An increase in corporate travel and a precarious economic climate calls for more dynamic planning and refined employee expense controls. To effectively manage employee spend as the landscape for corporate travel continues to evolve, SMEs require more comprehensive T&E guidelines and user-friendly tools.
- Over half (58%) of respondents have either outdated T&E policies, or no T&E policies at all
- 44% book travel directly (outside of corporate booking tools)
- The #1 stated reason for not booking through a corporate tool is lack of knowledge regarding corporate tools and processes or not knowing they exist
Post-Pandemic Workforce Shines a Light on Inefficient Legacy Systems
According to the new research, most respondents (more than 50%) now work in a fully remote or hybrid environment and have issued more corporate cards over the last three years to accommodate the change. The shift to a more decentralized expense management process has resulted in ill-equipped or rigid systems, lack of automation and real-time visibility, and additional challenges, including:
- Inefficient management of expenses with roughly one-third (32%) relying on manual processes and manual reconciliation using spreadsheets and paper
- Dissatisfaction in current expense management tools (24%), with 37% describing the processes of reviewing and approving expenses as “complex”
- Time-intensive tasks, such as: employee time spent filling out expenses (40%), time spent creating/analyzing expense data and trends (31%), and credit card reconciliation (27%)
“After four consecutive years tracking the sentiment of SMEs related to expense management, it is notable to see renewed optimism in business travel as a top area of investment,” said Naveen SinghCEO of Center. “As businesses rethink and refresh their backend operations to accommodate the changing workplace, finance teams are increasingly leaning on technology and automation to help them keep track of spend across distributed workforces. Center remains committed to helping them be as nimble as possible as the way we work continues to evolve.”
Download the full Expense Management Trends report here. To request a media interview with a Center executive, please contact [email protected].
About Center
Center is a software company helping businesses gain visibility into and manage employee spending. Our leadership shaped the first wave of spend management innovation, and created Center to deliver a more cost-effective and modern way to automate expense processing for mid-market companies. Center Expenseour core offering, is an integrated corporate card and expense solution used by small and medium-sized enterprises to save time, improve operations and compliance, and deliver real-time insights to finance teams for better decision making. Center is a privately held company headquartered in Bellevue, WA with team members nationwide. For more information, please visit getcenter.com.
Contact:
[email protected]
SOURCE Center/Barokas Public Relations
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