Chrome River CURRENTS

Now that there is an app for nearly every conceivable function, companies have realized that their second largest expense, travel, can be fully automated – bringing a new level of insight, analysis and negotiation to the ubiquitous expense report. Gone are the days of paper, calculators and spreadsheets for the tedious yet mandatory task of reimbursement. In their place are flashy smartphone apps that track the traveler’s location and purchases and create expense transactions automatically. These mobile solutions are linked to cloud-based expense management systems that provide immediate feedback to the employee when policies have been breached. They also provide high-visibility notification for approvers when compliance conditions are not met, allowing firms to exert greater control over their operating expenses to adhere to client requirements and firm policies. Requiring employees to manually complete expense reports, which not only wastes time but also drives up costs through lost productivity and increased staffing, is no longer a viable option. In today’s economy, it’s either increase productivity or suffer reduced profitability.

Those big guys have it made. Large companies have the ability to invest in consultants and analysts to streamline their accounts payable (AP) and expense reporting processes so they can process much more volume in a short amount of time. If only there were ways for small and medium-sized businesses to take advantage of the same capabilities. It would level the playing field and more than likely reduce some operating expenses in the process.

After many years as a road warrior, I have noticed that I’ve developed patterns and routines in my business travel to help maximize my efficiency and minimize my stress. If you asked my wife, she might just chalk it up to my being OCD in nature, but these simple tips are now part of my business travel routine:

The way to drive performance is to measure it. Do you want to judge the success of a project? Do you want to change people's behavior? You need to create Key Performance Indicators (KPI) that quantify the objectives you are striving for. Your KPIs may change from project to project and from year to year. But they should be consistent in their ability to measure the success or failure of any set of activities.

World-renowned Italian artist Franco Innocenti lives in what remains of a 10th century castle tower and paints the world as he sees it. His paintings reveal a reality different from the one to which we are accustomed, as Franco removes objects from their natural environments and places them in completely unusual surroundings, creating absurd combinations that reveal paradoxical aspects of the world around us.

In any business there are specific questions that should be part of every continuous improvement plan:  

The breaking news that the Labour Member of Parliament for Rotherham, Denis MacShane, is facing a 12-month suspension from the House of Commons for submitting false invoices that were “plainly intended to deceive” highlights the constant diligence required of organisations to monitor and control their expenses and incoming invoices.

This was also the subject of a September survey that found nearly one-third of 1,000 UK employees who took taxis for work admitted that they routinely cheated on such expense claims. The people polled indicated that they added to the taxi bill or expensed fares that were not business related.

 "Taxi Receipt" Photo. Ebay.co.uk 10 Jun. 2012. 06 Nov. 2012 <http://www.ebay.co.uk>.

Few would argue with the truism “Numbers don’t lie,” but inaccurate numbers can and do lie all the time. A good example is the vast number of inaccurate numbers that can enter an organization’s financial system via expense reports. Organizations that allow employees to write or type expenses into a form that is manually reviewed and re-entered into the accounting system by a staff member have introduced several opportunities to enter inaccurate information for each transaction.

The quality of your expense reporting speaks to the type of worker you are.  Do evaluations reflect frugal or flighty spending, careful or careless tracking, a dinged or distinguished history? Too many tallies in the wrong category can echo negative opinions about professionalism and work ethic. When it’s read in black and white, what do expense reports say about you?

For many business travelers, airline travel is the fastest way to get from Point A to Point B, unless a flight delay upsets a perfectly crafted schedule, leaving unplanned downtime in place of progress. Use the interruption to your itinerary to get a head start on pre- or post-travel agendas by putting these efficient business-travel tips into practice.