Expense management solutions are a necessary component of an effectively managed corporate travel program. These solutions make it easy for companies to track and manage expenses, while making it easy for employees to travel and purchase on behalf of the company and easily document expenses and facilitate reimbursement. The easier this process is for employees, the higher the rate of corporate card adoption and the more reliably the company can manage overall program spend.
Along with expense management software, it is important to incorporate a technology solution for effectively and efficiently monitoring employee transactions and travel behavior. Just as an automated solution for expense management makes for the most efficient and effective travel program and process, so too does an automated monitoring program. Why would you have a massive corporate spending program and not monitor the expenses on the backend for policy compliance? There is just too big of a vulnerability to fraud, waste, and misuse.
With nearly 27% of high-level executives committing expense fraud, and 20% of the travelers analyzed for Oversight’s own T&E Spend Analysis Report, it is safe to say that no expense management system is complete without an automated process for monitoring employee travel compliance. So how do you go about building the perfect PB&J of corporate spending for your own company?
The first step is to implement an expense management solution. My recommendation is that Concur should be at the top of this list. Once the expense management solution is in place, automated monitoring and analysis of 100% of the expense transactions is a great way to ensure that you inspect what you expect as part of maintaining policy compliance. Oversight Insights On Demand is an example of this type of system.
Our Insights On Demand platform complements expense management solutions like Concur by automatically analyzing 100% of travel transactions to identify unexpected results like misclassified expenses, non-compliant purchases, duplicate submissions, and suspicious out-of-pocket claims. Through our partnership with Concur we’ve built a connector that allows for the seamless flow of transactions and expense information from the Concur platform to ours. Once the data is here, we then utilize best practices analytics developed over the past ten years to automatically identify non-compliant traveler behavior while identifying the riskiest travelers, merchants, and merchant category codes.
Our software is very sophisticated as a result of working with global Fortune 500 companies to assure travel policy compliance and reduce overall travel program expenditures. With our clients, we’ve been successful in reducing expenditures by 2-5% of the total travel budget. How much money could you be leaving on the table by not employing an effective transaction monitoring technology to complement your expense management software? Our guess is, a lot.