Business travel expenses are necessary costs that are incurred to run a business. The management of business travel expenses is also necessary to keep business costs under control. Likewise, an automated travel expense reporting and management system makes business cost management easier for the company. This article looks into travel expenses management software.
What Is the Expenses Management Process?
The expense management process is the steps through which employees request a refund or provide details of expenses incurred in carrying out work-related tasks. Unless special tools are adopted to automate the process, creating and tracking costs and reports can be time-consuming.
What Is Travel Expenses Management?
Travel and expense management (also known as TEM or T&E) is the process of handling the business travel budget in order to have visibility over costs and to prevent them from happening in the first place. Organizations develop a travel policy and an expense policy to inform employees about how much they can spend and where they can spend it.
Goals of Travel Expenses Management
- Expense control
- Preventing disruptions
- Productivity control is related to submitting, approving, as well as refunding fees.
- Financial reporting
- Negotiating with third-party vendors
- Duty-of-care support and assistance
How Do You Manage Travel Expenses?
- Make a plan.
- Plane changes or stops when purchasing a flight.
- Use a budget-tracking tool to keep track of your spending patterns.
- When making trip plans, take the entire year into account.
- Purchase two one-way flights rather than round-trip tickets.
The Policy of Travel Expenses Management
A well-written T&E policy clearly defines what is allowed as important employee spending and helps finance teams streamline expense reporting. This keeps firms tax-compliant and ready in case of an audit. The rules should also apply to all plans where employees perform work-related activities outside the office.
Your travel expenses management policy should include the following
- Where and how to book travel
- The standards for approving or rejecting an itinerary
- The expense refund process
- Accepted flights and trains, including class, budgets, and spending limits
- Accepted hotels, including the star class, are allowed based on location along with acceptable and non-allowable incidental expenses
- Ground transport guidelines for rental cars, ride-sharing services, and personal car usage
- Meal allowances
What Does a Travel Expense Manager Do?
The Travel & Expense Manager is responsible for supporting associates with an understanding of the travel and expense policy, ensuring all travel and expense methods are cost-effective and run accurately and timely, as well as examining and fixing system issues.
Challenges of Travel Expenses Management to Small Businesses
Without a travel expenditure management solution, small firms face a number of difficulties, including high processing costs and ineffective operations. The submission routines in outdated, manual systems are sluggish and difficult, and there are many opportunities for human error. Additionally, if you rely solely on manual processes, it’s simple for unlawful travel arrangements to pass unnoticed.
It could be more challenging for small businesses to establish business relationships with hotels and airlines. Numerous travel management platforms include extensive hotel and business flight inventory. Additionally, without a policy that outlines your guidelines for deducting business travel expenses, the entire procedure becomes challenging, expensive, and unreliable.
Why Is Expense Management Important?
Businesses need to totally check costs to ensure the business complies with rules and make sure employees aren’t spending too much or buying non-work-related items.
Travel Expenses Management Software
Travel and expenses management software is an all-in-one solution for managing and tracking business travel expenses. T&E management software is essential for companies sending employees on work travel, whether it’s for booking travel, managing traveling employees, or creating expense reports.
Corporate travel and expense management software can help firms of all sizes. It’s important to have a broad summary of your corporate travel spending as well as experienced customer support if you run into any problems. It also aids in booking travel in accordance with your company’s travel policy and makes your billing process easier.
List of Travel Expenses Management Software
#1. SAP Concur
SAP Concur is a global travel expenses management software that allows for booking and on-the-go assistance. It will assist you in developing your own T&E solution by providing tailored tools such as Concur Expense (receipt capturing, policy setting, and reimbursement), Concur Travel (self-service booking for employees), Concur Invoice (vendor payments), and Concur Detect (fraud detection and policy compliance).
- Submission of the report: Concur can capture and prepare spending from a variety of sources, including OCR. View the process’s self-guided demonstration.
- Payment: Concur also integrates with a wide range of payment providers and offers a variety of card programs to help you save money.
- Integrations: Concur has extensive integration capabilities ranging from ERP apps to booking solutions (Booking.com, FROSCH, Lufthansa, American Airlines, and so on) to finance and HR products, as well as other SAP Concur offerings. You can find their marketplace here.
- Pricing: A tailored solution comes with a tailored price. Concur will provide you with a quote after you describe your company.
Coupa is another travel expenses management software that has a suite of tools dedicated to corporate travel. There is a predictive pricing feature that allows you to see trip costs before they occur. To help predict the travel budget, they rely on anonymized data from other users. Coupa also integrates with Amadeus, Cytric, and Egencia to power your travel management operations.
Coupa allows you to generate virtual payment cards for pre-approved expenses. You can use Coupa’s REST API to merge with any system. Coupa also has a vast marketplace of apps, including Sabre, Roomex, Amadeus Cytric, and Egencia. Since Coupa is a broad expense management forum with many products and qualities, they don’t offer a standard fee. Contact Coupa for personalized pricing.
Fyle is a travel expenses management software that enables firms and employees to better manage the expense and refund process. It also merges with TravelPerk to offer seamless travel expense reporting. Additionally, the two solutions work side by side to give you a complete summary of your T&E spending.
#4. Zoho Expense
Zoho Expense is viewed as one of the best expense systems for companies. It provides firms of all sizes with expense management and corporate travel solutions. It’s also an excellent solution for growing firms that require simple, scalable expense management solutions.
Because Zoho Expense’s primary offering is expense management, they lag behind when it comes to corporate travel. With an innovative forum and simple integrations, TravelPerk offers a unified approach to corporate travel and expense management. Furthermore, users rate TravelPerk higher than Zoho in all key areas, including ease of use, support quality, and product direction.
TravelPerk is a business travel expense management software that makes it simple for customers to book and manage corporate travel. The solution also integrates with a variety of other tools, including Rydoo and Circula, two popular expense management solutions. This ensures that you have everything you need on a single, simple forum.
In addition, TravelPerk’s broad travel management solution is simple to use, and the expense management integrations enable one simple workflow for all corporate travel needs. Businesses can claim at least 80% of their money back when canceling up to two hours in advance with FlexiPerk.
What Is the Best Software for Expenses?
- Expensify. by Expensify. 4.4. 42 Reviews
- Zoho Expense. by Zoho. 4.4. 21 Reviews.
- TripActions. by TripActions. 4.6. 17 Reviews.
- ExpensePoint. by ExpensePoint. 4.4. 11 Reviews.
- Coupa BSM Platform. by Coupa. 4.7. 10 Reviews.
Travel Expenses Management System
The “Travel and Expenses Management System” (TEMS) supports and manages requests for payment of personal expenses incurred while conducting state business by state employees and other individuals. Similarly, the travel expenses management system assists with the entire business process, from preauthorization to refund. Individuals, including those with disabilities, can also use the system, and administrators have the tools they need to support agency operations.
The travel expenses management system contains a repository of data on each customer’s daily travel and expense activities, allowing management, activity, and budgetary reporting. TEMS stops redundancy and errors while simplifying methods and saving time.
Reasons Why a Business Needs Travel Expenses Management System
- Efficient expense management: Using expense reports and expense refund software to manage business expenses improves expense management efficiency. Expense management automation equally removes these redundant steps from the expense management workflow.
- Elimination of errors: Human bias and errors in expense claim management are eliminated by automating travel and expense management. The system also validates the expense data automatically. Organizational travel expense software applications expedite the approval of reimbursement claims.
- Time-saving: Employees are relieved of basic tasks when repetitive and labor-intensive steps in the expense management workflow are automated. The time saved can be used for project-related activities, increasing the business’s productivity.
- Control over business costs: In a business, an expense report system assists in keeping track of business expenses. Business expense management software reveals the nature and impact of business expenses. Additionally, an online reimbursement system provides easy access to and control over business expenses from any location.
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FAQs on travel expenses management
How can I improve my travel management?
- Establish priorities for managers, administrators, and passengers.
- Use a website that makes it possible for customers to make their own reservations.
- Streamline the procedures for approvals and policies.
- Facilitate direct access to help travelers.
- Instantaneously, quarterly, and monthly optimize your trip expenditure.
What are allowable travel expenses?
You can write off actual costs or the normal mileage rate, as well as parking and toll costs relevant to your professional activities. If you rent a car, you can only deduct the cost for business purposes. Accommodations and meals are not tied to entertainment. Both laundry and dry cleaning. while you’re on a business trip, business calls.
What is considered a business travel?
The IRS defines business travel as any journey that takes you “substantially longer than an ordinary day’s work” and necessitates that you sleep or rest while you are away from home. You must additionally spend the night away from home in order to write off these expenses.