How to Architect Modern Spend Management Solutions for Growth
Finance leaders today have a unique opportunity to architect modern spend management solutions that position their businesses for growth within the context of distributed workforces, digital payments, and new technology.
Earlier today, Michael Sindicich, General Manager of TripActions Liquid, took an audience of finance, accounting, and procurement professionals on a journey through the past two years during the PEX Webinar: Achieve Business Growth with Integrated Travel and Expense Tools.
His presentation looked at how changing market dynamics have shaped the future of spend management and how integrated T&E solutions can empower employees and finance teams while also increasing control, visibility, and the real-time health of your business.
Shifting Market Factors
Michael started the discussion by noting how, in today’s decentralized workforce, the number of global, distributed teams is growing. As a result, employees are increasingly making spending decisions on behalf of the company. At large, employees are making different, larger purchases on behalf of their company and are spending on new categories like digital ad spend, software subscriptions, and office equipment.
Unsurprisingly, however, traditional expense management tied to these purchases remains time-consuming and costly for companies and their employees. It takes 20 minutes and $58 in resources to process one expense report—and 20% of expense reports need correction due to manual processes, an additional cost.
The current state of expense management also presents financial risks.
Over a third of UK employers are concerned about fraudulent expense claims, and businesses lose $2.7 bn in employee expense fraud a year. Employees are also often expected to pay out-of-pocket and wait for reimbursements, subjecting them to cash flow burdens. The fear of not getting reimbursed in a timely fashion can stall productivity: 1 in 4 employees have canceled or postponed a meeting to avoid having to pay for expenses with personal funds.
With manual processes and fragmented tools, legacy solutions for expense management result in poor spend visibility and control.
Automated Solutions for Today’s Challenges
T&E expense management becomes a whole new world with the help of automated tools. Combining corporate cards with expense reporting software eliminates most of the manual processes required on the back end. Smart physical and virtual cards then give finance teams real-time transaction visibility and control.
Policies are built-in to smart cards and automatically enforced at the point of purchase so that finance teams know what’s being spent. They also know what’s approved, declined, or flagged for recourse.
Furthermore, smart cards with built-in policy controls allow finance teams to reduce out-of-policy spend while supporting equity in the workplace. They remove the burden from employees to use personal funds and auto-enforce spend limits at the point of purchase.
Policy is digitally integrated into the process so when employees make a transaction, the right rules are applied based on the expense category, user, and business context. By enforcing policies at the point of purchase, managers and finance teams only need to review out-of-policy spend, which streamlines approval workflows.
Real-time spend visibility provides finance teams with a single source of truth to confidently assess the health of the business, and frees them up for more strategic decision-making.
Where TripActions Liquid Comes In
TripActions Liquid is the all-in-one expense and corporate card solution that gives finance teams real-time spend visibility and control — empowering them to drive savings, productivity, and compliance.
Proactive policies are programmatically built into smart cards issued by Stripe so that expense management is automated from swipe to reconciliation. Interactive dashboards and seamless ERP integrations offer a single, real-time view of all business spend to inform smarter decisions on cost savings and efficiencies. And TripActions Liquid is fully integrated with our travel bookings platform to give businesses a one-stop shop for end-to-end T&E management — from reservation through reconciliation.
Come meet TripActions Liquid at The TripActions Liquid™ Premiere on December 9th at the Odeon Luxe West End. Learn more.