Travel Management System - A tool to conquer corporate travel and expense management
With the snowballing wave of globalization and global augmentation, corporate travel expenses have increased. This increase has piqued the interest of the organizations that are already struggling with cost management issues. Therefore, it becomes crucial for the organization to recognize these challenges and find a solution. In this blog, we assess 5 challenges presented by manual business travel management and how an automated travel management system can help overcome these obstacles.
Unambiguous Travel Policies
When travel policies are not clearly stated, or there is ambiguity in this regard, raising requests and getting approvals can become a tedious process. This affects the productivity of both the employee and the employer. Thus, it becomes necessary for the organization to maintain acceptable policies that clearly state the travel costs, including food and accommodation. Also, maintaining this information in a separate document becomes necessary if the organization has associations with specific chains.
Sounds too much work, right? Digigarage is a corporate travel management system that effortlessly performs all these tasks without much hazard. This system analyzes the requests and the overall data stored in the software, making it easier for the travel management team to verify the requests and make quick, informed decisions. In addition, this business travel management system abides with the company's travel policies, states them to the employees, and avoids any misguided requests on the part of the employee or misinformed approvals on the part of the employer.
Decreased Expenditure Visibility
Business travel expenditure takes a good share of an organization's budget, and poor visibility of this expense can take away a big chunk of the annual profit each year. Thus, clear visibility of the travel expenditure, including accommodation and food costs, is essential.
Manually updating this data each day when an employee is travelling becomes tiring. Moreover, when the employee fills in the information for all the travel days at once, there are chances of some discrepancies. Wrong or insufficient data can lead to erroneous accounting.
A corporate travel management system comes in as a boon as it gives access to numerous databases for analysis instead of a limited set of reports otherwise. Assessment of a large amount of information before approving any travel request helps the seniors to shun any tricky situation. Moreover, when all the data is available at a single click rather than clicking on multiple reports to compare the data results in better recognition of unneeded expenses.
Entering data manually in a spreadsheet often unsees the incoming costs leading to multiple mistakes, especially in large organizations. Managing offline receipts with numerous employees sharing their business travel information can lead to incomplete and, at times, incorrect reports.
This obstacle can be tackled with an automated system that handles all the organization's travel and expense management processes through manual spreadsheets. An automated corporate travel management system altogether removes the need for manual data entry. In addition, an automated process streamlines all the travel expenses so that paper receipts become unnecessary, and the process becomes agile and easy on both ends.
Delay in Reimbursement
Employee reimbursement should be a timely process. Unnecessary delay in compensating the employees for their business travel can lead to resentment in the staff and absence of order in the organization. The automation process can circumvent factors such as misplaced crucial information or delay in the processing of an expenditure report. In addition, a travel management software restricts manual work, which increases the efficiency of the process.
Unseeing the Business Travel Expense Trends
Manual spreadsheets or similar travel management systems lower data visibility and fail to show trends or regular patterns in employee business travel plans. Spotting atypical behaviour against common trends and patterns is legitimately difficult when the expense report is done manually. In manual data reporting, there is a one-time limitation in data visibility. Each piece must be visible while solving a puzzle. Similarly, approving or denying a travel request becomes simpler when all the company travel patterns and trends are in handy. This can be achieved only by an automated travel and expense management system.
Effective corporate travel and expense management can be arrived at only by integrating technology, and there is no denying this fact. Archaic ways of managing travel and expenses in an organization are time-consuming, inefficient, and can lead to misinformed decisions resulting in a financial imbalance in the company's well-being. Automated travel management applications have notably improved managing and controlling business travel expenses of the staff.
Challenges faced by the Employees
In most organizations, the employee reimbursement process works separately from the wage disbursement process. Each month's salary is credited to an employee promptly, but there are lapses in the process and the settlement time when it comes to travel expense reimbursement. In the absence of a centralized travel management system, every expenditure and a corresponding receipt and date have to be penned down by the employee. This is a tiring process, and even after approvals, reimbursement is done in an unstructured manner. This often leads to tiffs between the employees and the employers, though no one is actually at fault.
Let's assess the challenges faced by an employee for corporate travel reimbursement in the absence of a central corporate travel management system.
Affects Personal Cash Flow
Everyone plans and divides their monthly expenses to manage them and save even the slightest amount possible from their salary. However, an unexpected business travel plan can stress the employee's financial situation if the reimbursement is not done in a month.
Hesitation Affects Productivity
If an organization is infamous for long delays in travel expense reimbursement, the employee will hesitate to travel for business needs. This will ratify the employee's productivity and indirectly cost the company's gain as well. In serious cases, an employee can even quit working in delayed travel expense settlements.
How can Digigarage – an automated travel management system help?
Digigarage has devised a corporate travel management application, a single-click solution for all the employer and employee problems related to corporate travel and expense management.