n the world of business travel, two things are super important: saving money and following the rules. Saving money means using money wisely to get the best value. Following rules is all about doing things following the travel policy, which keeps the company safe and out of trouble.
In this article, we’ll explore how financial managers make sure companies save money and play by the rules when it comes to business trips.
The role of Financial Managers in corporate travel
Financial managers are the guardians of a company’s financial health. They oversee the organization’s finances, including budgeting, forecasting, and financial reporting. In the context of corporate travel, they play a crucial role in managing the funds allocated for business trips. Their responsibilities include:
- Budgeting
Set budgets for corporate travel expenses, taking into account factors like the number of trips, destinations, and expected costs.
- Expense management
They track and analyze travel expenses to ensure they align with the budget and company policies. This involves reviewing expense reports, identifying cost-saving opportunities, and approving reimbursements.
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- Vendor negotiation
Financial managers negotiate contracts with travel vendors, such as airlines, hotels, and car rental companies, to secure rates and terms for corporate travel bookings.
- Policy development
They develop and enforce travel policies and guidelines to govern employee travel behaviour, expense reimbursement procedures, and compliance with regulatory requirements.
- Risk management
Financial managers assess and mitigate financial risks associated with corporate travel, such as overspending, fraud, and non-compliance with policies or regulations.
- Reporting and analysis
They generate financial reports and performance metrics related to corporate travel expenditure, providing insights to inform strategic decision-making and optimize travel spending.
2. Strategies for driving savings in corporate travel
Using a centralised technology for travel and expense management
Centralising the entire expense management process, from booking to payment to invoicing, onto a single integrated solution can significantly transform the way organisations manage their travel expenses.
Here’s why embracing technology for expense management is crucial and how centralisation can eliminate the need for traditional expense reports:
- Efficiency and accuracy
Centralising expense management into a single solution eliminates the need for manual data entry and paper-based expense reports, reducing the risk of errors and streamlining the entire process.
Ayruu centralises all your travel providers’ invoices in one place to make expense management easier for you.
- Real-time visibility and control:
A centralised expense management solution provides real-time visibility into travel spending, enabling financial managers to monitor expenses as they occur and proactively manage budgets. With instant access to comprehensive expense data, organisations can make informed decisions, enforce policy compliance, and identify cost-saving opportunities more effectively.
- Enhanced employee experience:
Centralising expense management also enhances the employee experience by simplifying the expense reporting process and reducing administrative burdens.
Using a centralised technology for travel policy compliance
Here’s how leveraging centralized technology can enhance travel policy compliance:
- Policy standardisation and accessibility
Centralised technology solutions such as Ayruu allow companies to establish standardised travel policies and guidelines that are easily accessible to all employees. By centralising policy documents within a digital repository, companies ensure consistency in policy interpretation and implementation across departments and locations.
Automated policy enforcement
Integrate policy rules and parameters directly into the booking systems. Automated alerts and notifications can be triggered when employees attempt to make bookings that violate established policies, prompting them to adjust their plans accordingly to ensure compliance.
Discover how Ayruu implements your travel policy directly in the booking system.
Customizable approval workflows
Configure customisable approval workflows tailored to your specific policy requirements. By defining approval hierarchies and routing rules within the system, you can ensure that all travel requests and expense reports are done according to your travel policy.
Are you a financial manager taking care of business travel expenses in your company?
Do you know that our client Ze-watt, had made 80% of savings on expense reports management for Ayruu?
