A Guide to Managing Business Travel and Expenses
Business travel and expenses (T&E) represent one of the largest controllable costs for most companies. Yet, it's an area fraught with complexity, manual processes, and potential for overspending. A disorganized approach not only impacts the bottom line but also creates frustration for employees and administrative burdens for finance teams.
Effective T&E management is a strategic function that balances cost control with traveler satisfaction and productivity. It requires a clear policy, streamlined processes, and the right technology. This guide will walk you through the best practices for getting your business travel and expenses under control.
1. The Foundation: A Clear Travel Policy
Your travel policy is the single most important tool for managing T&E spend. It's the rulebook that sets expectations for your traveling employees.
- Be Specific: Your policy should clearly outline what is and isn't a permissible expense. This includes airfare class, hotel price caps (per diems), meal allowances, and rules for ground transportation.
- Mandate Booking Channels: To maintain visibility and control, require all travel to be booked through a single, company-approved travel management platform like Routespring. This ensures all bookings adhere to policy from the start.
- Define the Approval Process: All travel should require pre-trip approval. This prevents out-of-policy bookings before they happen. An automated workflow within your platform can route requests to the right manager, making the process quick and efficient.
For a deep dive, check out our Guide to Creating a Travel Policy that actually works.
2. Streamline with Technology
Manual expense reports are a relic of the past. Technology is key to creating an efficient, modern T&E program.
- Integrated Travel and Expense: The most effective solution is a platform that combines travel booking with expense management. When an employee books a flight on Routespring, the expense is automatically created, categorized, and reconciled. This eliminates the need for manual expense reports for all pre-booked travel.
- Centralized Payments: Eliminate the need for employees to use personal cards. By using corporate cards or a centralized billing account, the company pays directly. This improves traveler satisfaction and gives your finance team real-time visibility into spending.
- Mobile-First Approach: Travelers should be able to manage their trips and expenses on the go. A good mobile app allows for receipt capture, trip approvals, and itinerary management from anywhere.
3. Educate and Empower Your Team
A policy is only effective if your team understands and follows it.
- Communication is Key: Don't just publish the policy; explain the "why" behind it. When employees understand that cost control helps the company's overall health, they are more likely to be mindful of their spending.
- Provide User-Friendly Tools: If your booking and expense tools are clunky and difficult to use, employees will find workarounds. An intuitive, consumer-grade platform encourages adoption and compliance.
- Lead by Example: A cost-conscious culture starts at the top. When leadership follows the T&E policy, it sets a powerful example for the entire organization.
By implementing these best practices, you can transform your T&E process from a costly administrative headache into a streamlined, strategic asset for your business.
Ready to see how Routespring can automate your T&E management?