The State of Travel and Entertainment Expense Management

Business travel, for years, has often been considered a "sunk cost" by enterprises around the globe. However, in the midst of economic recovery, organizations are beginning to view their expense management programs and processes in a more strategic light, according to a new research study published by Aberdeen, a Harte-Hanks Company (NYSE: HHS).

"The State of Travel and Entertainment" research report, which gauged the programs, processes, and performance of nearly 175 enterprises, found that organizations perceive expense management to be a mid-level strategic function that can drive moderate value to the overall enterprise. This is a sharp, fresh view of thinking from the decades spent managing expenses as an unavoidable cost of conducting business.

"T&E expenses account for nearly $24 million a year for the average enterprise," said Christopher Dwyer, research analyst, Aberdeen. "With enterprises reinstating travel budgets and conducting business on a global scale, there is heightened organizational awareness to the benefits of controlling spending on this category and managing the complexities of T&E expenses in a strategic manner."

The new study found that over half (53%) of organizations currently place a high priority on expense management in current economic conditions. "The State of T&E Expense Management" also highlighted the performance and strategies of performance-leading enterprises, that have achieved a 31% higher rate of policy compliance than all other enterprises and have generated an 80% reduction in expense-processing costs. These top-performers are:

 

-- Nearly 50% more likely than all other enterprises to hold instantaneous

   visibility into Travel and Entertainment (T&E) spending against budget

-- 43% more likely to regularly audit expense reports

-- 20% more likely to influence a formal sourcing program

A complimentary copy of this report is made available due in part by the following underwriters: Concur, Coupa and Infor. To obtain a complimentary copy of the report, visit: http://www.aberdeen.com/link/sponsor.asp?spid=30410182&cid=6039&camp2

Visit Research.Aberdeen.com for additional access to complimentary Global Supply Management Research.

 

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