BEST PRACTICES IN TRAVEL CARD MANAGEMENT:


PROMOTING TIMELY COMPLETION OF EXPENSE REPORTS


MANY COMPANIES HAVE REALISED an increase in timely expense report submissions by introducing electronic expense management systems. On average, transitioning from a manual, paper-based process can reduce the time it takes for an employee to complete an expense report by 35%, from 26 to 17 minutes, according to results of the 2013 Corporate Travel Card Benchmark Survey conducted by RPMG Research Corporation. While the efficiency gains have been


BY LINDSAY HUSTON-HERBST DIRECTOR, SENIOR PRODUCT MANAGER BANK OF AMERICA MERRILL LYNCH


positive, programme administrators strive to further reduce the cycle time in expense report creation. Organisations that struggle to reduce cycle time commonly have ambiguous policies supported by little to no corporate mandate for timely submission of expense reports. At such businesses, cardholders are not held accountable and find no real incentive to honour stated policies. To help you align employee priorities with those of your travel card programme administrator, we suggest considering the following best practices.


EVALUATING OUR SUGGESTIONS Consider these best practices through the lens of your organisation’s culture. Some may make sense for you; others may not. Establishing policies and procedures that are too strict – or, conversely, that are too loose – will not deliver the improvements your company is seeking. So think about how your cardholders are likely to receive any changes you are contemplating, and consider how you would actually execute your plan.


SOFT TACTICS Require cardholders to sign agreements. Prior to receiving their card, require cardholders to sign a formal agreement that states their intention to submit their expense reports on time.


Practise aggressive late-report notification. When a cardholder is late submitting an expense report during the first cycle, send a notification to the cardholder. If the expenses age, and the cardholder still does not submit an expense report, send a second notification, but this time to the cardholder’s manager. If the cardholder still does not respond by submitting the report, send a third notification to senior management within the organisation.


Distribute regular updates summarising expense reports completed on time. Establish a routine whereby department managers receive a report on the percentage of expense reports submitted “on time” by personnel within their department. Accompanying commentary should highlight total savings in terms of late fee reductions. You might also find a metric that can demonstrate the “hours saved” for the department’s programme administrator. Your goal should be to continuously set the bar high for department managers, while reinforcing the value of on-time expense report management.


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