Why to Implement A Travel and Expense Management System
Globalization has forced the organization to increase mobile workforce. These employee has to travel more to enhance business operation. It is expected from them to minimize the travel expense and keep all the records of expense which is a difficult job. A Travel and Expense Management report by Pay Stream Advisors found that,
- Most Companies Do Not Know Their Processing Costs
- Most Companies Do Not Use Any T&E Automation
So the question is what are the benefits of implementing a TEMS and why a organization should spend money on such.
A report conducted by the research arm of The Economist magazine found that fraud incidents grown for Purchasing Card and T&E Expense. Report also indicate that it took average of 18 month to deduct the fraud and upto 49% of frauds never recovered and the average loss from single fraud case is USD 140,000.
So a TEMS will enable you
- Better ability to enforce travel policies
- Lower processing cost
- Improved visibility over spend
- Improved employee satisfaction
- Quicker reimbursement of employee expenses
- Increase corporate card usage and rebates
- Improved ability to detect and prevent fraud
- Ability to negotiate volume discounts with vendors
- Better compliance with regulatory requirements
- Reduction in late payment penalties and interest