Strategic Approaches to Travel and Entertainment Expense Management Strategic Approaches to Travel and Entertainment Expense Management

2 ADP Canada  More than 60 years of expertise  Services 50,000 Canadian businesses  Pays one in four Canadians in the private sector  One of five US non-financial companies with a AAA- credit rating ADP is the leading provider of HR, payroll and time and attendance management services.

3 ADP Canada Accumulated over 10 years of expertise in working with clients to improve organizational efficiencies while leveraging new technology. Holds a Bachelor's degree from the University of Calgary, major in Economics and minor in Commerce. Joined ADP in 2007 as a Specialist in expense management business processes in Western Canada. Ben Ferraro

4 Courier Return / Re-submit Approval Typical Manual Expense Management Process Book Trip (Web, Agent) Take Trip / Incur exp Printed Exp. Report Manual Audit Reimburse via cheque Create Expense Report GL Entry Accounts Payable

5 Challenges with Manual Process Difficult to enforce corporate travel & expense policy Manual data entry is inefficient, redundant, and leads to errors Workflow is disjointed and difficult to track expense report status Document storage can be expensive and difficult to locate Limited ability to run meaningful reports on T&E spend Long Reimbursement time

6 Why Automate? "…The second-largest controllable expense is Travel & Entertainment (T&E) Expense… The benefits of automating are immediate and come from areas such as policy compliance, cash management and vendor-negotiated discounts.” Source: The B2B Analyst by U.S. Bancorp Piper Jaffrey T&E is the 2 nd largest controllable expense

7 Courier Return / Re-submit Approval Typical Manual Expense Management Process Book Trip (Web, Agent) Take Trip / Incur exp Printed Exp. Report Manual Audit Reimburse via cheque Create Expense Report GL Entry Accounts Payable

8 Reporting Payment Automated Travel and Expense Management Solution Online Booking Broad Inventory Embedded Policy Easy to Use Corporate Card Pre-population and eReceipts ExPManager Expense Reports Paperless Manager Approval Including Receipts Electronic Approval Finance System Integrated Automatic GL Import Electronic Status Employee Payment Rapid, Electronic Reimbursement to Employee Reporting Services Flexible Reports Executive Dashboards Automatic Distribution Approval/ GL Entry Complete Expense Report Take Trip Book Trip

9 Top Airline Vendor Spend VendorExpense Amount (reimbursement currency) United Airlines$48, American Airlines $8, Air Canada$5, Continental Airlines $5, Alaska Airlines$5, British Airways$5, Summary$79,978.33

10 Top Exception Violators EmployeeNumber of Exceptions Anderson, John 1 Anderson, Martin 3 Beers, Gary 24 Daniels, Jennifer 29 Dean, John 3 Faye, Terry 43 Francois, Tara 0 Galworth, Jack 9 Hamilton, Michael 1 Henson, Todd 51 Johnson, Kris 0 Summary164

11 Best Practices For Automating The T&E Process  Create a T&E policy then build rules in the solution  Generate regular reports to show T&E spend  Integrate with financial system (mapping)  Leverage reports to negotiate vendor discounts  Integrate travel booking and expense reporting

12 Best Practices  Thwart out of policy expenses before they occur  Ensure use of preferred suppliers  Improve service levels to your employees Integrating Travel and Expense Processes is an emerging best practice

13 Benefits of Automating T&E Process  Reduces cost  Decreases expense report processing time by 46% when done electronically 1  Reduces errors, eliminates re-keying  Improves compliance which lowers T&E Costs  Improves business processes  Allows online review and approvals, full audit trails  Improves reimbursement cycle to as little as 5 days  Integrates with the GL, provides automatic reimbursement to employees  The Gartner Group estimates a 5% reduction in operating costs is equal to a 30% increase in sales 2 1 ”Travel & Expense Management…”, Aberdeen Group “Q&A for Travel Expense Management Software and Implementation”, The Gartner Group 2008

14 Benefits of Automating T&E Process  Increases control  Greater control over T&E spend (18% increase in compliance 1 )  Comprehensive 360 o reporting capabilities 1  Mitigates business risk  Reduces fraud (13.2% of fraud cases involve T&E reimbursements with a median loss of $25,000 each instance) 2  Improves compliance (companies with external controls in place to manage SOX compliance have greatly reduced median losses – up to 89.1%) 2 1 “T&E Lifecycle…”, Aberdeen Group “2008 Report to the Nation on Occupational Fraud and Abuse, Association of Certified Fraud Examiners, 2008

15 To Learn More For more information about automated expense management solutions or how to improve other business processes, Call or visit adp.ca

Strategic Approaches to Travel and Entertainment Expense Management Strategic Approaches to Travel and Entertainment Expense Management