All organizations should implement spend management tools that can help them to reduce frictions throughout the entire process.
FREMONT, CA: The current situations of companies are better than earlier as they are at all-time high profits. But the question arises why are still companies borrowing $1.6 billion a month from employees, in the form of business expenses being paid with personal monies and reimbursed later?
According to Conferma’s study, more than 40 percent of the U.S. working people pay business expenses and are considered as “America’s Invisible Bank.” This makes an average outlay of around $111. Only one-third of people get reimbursed within a week. Due to reimbursement delays, most of the people are reported falling behind in household bills, creating deep dissatisfaction, and even depression among employers stemming from slow reimbursement of personal funds.
The Need For Change
In 2019, an Integrated Travel Management report was produced by the Association of Corporate Travel Executives (ACTE) and American Express Global Business Travel, and 72 percent of people mentioned that their firms had included travel management systems and policies. But still, some reports show that even more than 20 percent of travel managers are again running mostly paper-based departments with receipts stapled to forms. To field accurate end-to-end corporate travel solutions, several FinTechs are busy partnering up with financial institutions (FIs).
Almost four years ago, some companies were still using paper receipts but now uses three-card products for associates (travel and expense, fuel, and so-called “p-cards” for procurement), coupled with spend management software.
Happiness Is Spend Management
Nowadays, some of the workers are still shelling out their money while traveling or transacting on company business and sometimes waiting weeks to recoup from their employer. The second-largest controllable expense” in business is T&E. Technology has finally caught up with that idea of a streamlined, centralized view of travel spending. Spend management tech is now rolling out right and left as companies grasp the savings in money, time, and employee goodwill.