24 September, 2015

Are you doing your expenses right?

Aussies are well aware that when it comes to business, expense management is an important aspect of the corporate world.

But while most Australian businesses understand the importance of monitoring and managing employee expenses and supplier invoices, they have not yet appreciated the value of automated systems.

According to the 2015 Concur ANZ spend management index, more efficient cost management is seriously lacking in Australian businesses.

“There is widespread awareness that having travel and expense management policies in place can help businesses manage their costs more effectively,” Concur’s general manager Matt Goss said.

The next step for these businesses is to implement systems that help reduce errors, improve productivity, and increase cost efficiencies.”

The 2015 Concur ANZ spend management index provides a snapshot of how Australian companies manage business expenses and supplier invoicing.

It canvassed 104 senior finance and management decision-makers from a variety of industries including financial services, retail, food, transport, insurance, utilities, resources, entertainment and other professional services.

“The index revealed that 27 per cent of respondents still use paper-based expense management. Using a disconnected and manual system means businesses are missing out on opportunities to address compliance issues and save money,” Goss added.

“Encouragingly, 58% of businesses surveyed analyse the data from their expense management systems. These companies are likely to come out on top when it comes to managing costs more effectively, minimising overspend, and detecting and preventing fraudulent spending.”

“Implementing an automated solution yields multiple benefits for businesses when it comes to the T&E policy,” Goss said.

“For example, it removes the need to micromanage employee spending, giving business travellers freedom to choose within certain budget limits.

“Importantly, automating the employee expenses and accounts payable process, rather than using a manual or paper-based system, lets businesses collect and analyse spending data.”

“They can then identify spending patterns to see where they can cut costs, where employees are behaving responsibly, and where fraud or theft may be occurring.”

Key results of The 2015 Concur ANZ spend management index included:

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Email the Travel Weekly team at traveldesk@travelweekly.com.au

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