EN
Corporate travel is part of the routine of many companies, serving various purposes such as attending conferences, seeking new suppliers, visiting clients, team strategic retreats, among others. These trips require efficient financial planning, which, if poorly managed, can create significant challenges for employees, managers, and finance teams.
In this article, we will explore the main challenges of managing corporate travel from a financial perspective, addressing the most common difficulties faced by companies today and presenting some alternatives for better expense management, making the routines of travelers and finance departments easier.
Among the main obstacles faced during the planning, execution, and reimbursement process of corporate travel, the following stand out:
Delay in travel budget approval: Prolonged approval times can delay trip planning, potentially leading to lost availability in hotels and flights, and often resulting in higher costs, burdening the budget.
Difficulty and high cost with multi-currency transactions: International travel can present challenges related to exchange rates and conversions, leading to difficulties in payment processing and additional costs.
Lack of limits on credit or prepaid cards: This leads to difficulties in purchasing and financial control processes, often forcing employees to use their personal cards.
Sharing of cards among different teams: This practice can cause complications in expense management, as well as impact the available credit limit.
Totally manual reimbursement process: Processes that require manual completion of reports and submission of receipts are time-consuming and prone to errors, causing stress for the teams.
Loss of receipts and documents: The absence or loss of proof of purchase occurs frequently during trips, affecting transparency and proper tracking of expenses.
The use of a digital platform for managing corporate expenses can simplify and accelerate both trip management and the reimbursement process. These tools allow for the control of all expenses, ensuring compliance with the established travel policy. Additionally, they enable employees to submit receipts digitally and in real-time, making it easier for finance teams to access the necessary information to process reimbursements quickly and efficiently.
📋 Tip: If you're looking to optimize your company’s expense management beyond business travel, check out our article with best practices for expense management optimization.
Establish clear, pre-approved budgets for travel, organized by department and individual, to reduce uncertainty, limit unnecessary spending, and speed up the final approval process. Centralized financial planning in a platform can help forecast expenses and avoid surprises during approval requests.
Providing dedicated corporate cards for travel, whether physical or virtual, can improve transaction security and control. These cards, integrated with expense management platforms, allow detailed monitoring and prevent personal card usage, increasing transparency. Moreover, globally accepted cards offer more flexibility for international travel payments and can be valuable for unexpected expenses and emergencies (e.g., flight changes, health expenses).
Besides simplifying expense management, some corporate cards offer additional advantages, such as cashback programs, discounts on flights and lodging, and loyalty benefits like access to VIP airport lounges, enhancing traveler comfort. These perks can lead to significant savings for the company.
Monitoring expenses in real-time is crucial for quickly identifying and correcting any budget deviations. Modern management platforms allow managers to view all transactions in a centralized dashboard, improving tracking and decision-making during trips.
A fully digital reimbursement process, with mobile app capabilities for receipt submission, not only reduces processing time but also minimizes errors and simplifies audits. Automating steps in the process can eliminate repetitive tasks and ensure employees are reimbursed more quickly.
Implementing these strategies is essential for more effective corporate travel expense management. With Jeeves, your company can streamline the financial management of business trips, automate reimbursements, track expenses in real-time, and use globally accepted corporate cards. This helps promote better control, transparency, and efficiency in your financial operations.
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