Cost Control & Expense Management
Cost control and expense management can be a nightmare if not monitored and controlled regularly and correctly.
Here’s some tips when it comes to travel and entertainment:
- Have a simple and clear travel policy and have it communicated to all staff especially new starters to get them on board with the company’s expectations from the get-go.
- Give each department or cost centre their own budget and they must explain budget blow outs each month not at the end of the financial year.
- Do not automatically increase the T&E budget each year, rather incentivise those departments that reduce their travel spend and have spot targets for reduced spend in quieter times of the year.
- Find a cost effective expense management tool. Many large companies use Serko or Concur but it doesn’t have to be sophisticated or expensive but it does have to be automated. Don’t go chasing invoices and receipts, make your travellers responsible. No receipt = no reimbursement. A fantastic free APP called CamScanner can ensure that collecting receipts is paperless and electronically sent to accounts or collated for reconciliation as charges occur.
- Streamline your form of payment – larger companies should look at BTA or Airplus for travel chargebacks to an account with sophisticated reporting. SME’s can also take advantage of this but a good corporate card system is just as effective – there are many to choose from and we can show you your options.
- Control your costs by booking the cheapest fare of the day and be flexible with hotel choices.
- Have a really good Travel Management Company monitor your travel policy and report on anomolies. Someone proactive and understands the corporate world and not just the travel world.
- It really comes down to your travel policy and how it’s managed and by whom it’s managed.
These are just some simple guidelines. Every company is different and so a bespoke strategy is required. Whether you are a new client or an existing client, we’re there to help set up the strategy and then review it periodically as and when needed.
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