In the corporate world, the term T&E is widely used amongst employees, CFO’s and decision-makers. But what does it actually mean?
What does T&E mean?
The industry refers to T&E as either Travel & Entertainment or Travel & Entertainment Expenses. But whatever you may call it; it is unarguably the second-largest operational cost for any business. These costs may be unavoidable but that does not mean they cannot be controlled or effectively managed. The solution for the same is called a T&E audit.
What’s a T&E Audit?
T&E audit is an official inspection of the company’s travel plans, accounts and expenses in order to bring down the costs in a reasonable manner.
How can T&E Audit be helpful for your company?
A team of auditors looking at a company’s records; what could go wrong with that picture. Absolutely nothing! In a world when most of the expenses are determined by external factors and conditions you have no control over, you need someone qualified to audit your expenses and help you minimize them.
When it comes to expenditure resulting from business travel, meetings and conferences, the best thing corporates can do is try to manage their expenses. The goal is to make the process as efficient as possible while minimizing hassle and saving the company’s time and money.
How much can your company save with a T&E Audit?
A T&E audit gives your company the chance to save around 8% – 10% of your total annual T&E expenditure. But most of the times corporate travel bookings are so fluid and vast, these are outsourced to travel agencies where all the action happens behind the scenes. In this scenario how do you save that critical 8 to 10% of your expenses? A thorough T&E audit has someone delve deep into travel records, expenses, reimbursements and cancellations. It helps you uncover hidden insights about your travel bookings. The only problem is that few financial heads or their teams have the resources or time to research & analyse what exactly went wrong and where, if the expenses go above and beyond the budget.
How do you get a T&E Audit done?
Find someone with the experience of checking and auditing travel records. Here lies the answer to your question. The solution is to have a check in-place that can validate travel expenses real-time to ensure travel bookings have been done at the best possible rates right at the time of booking. So whether the organisation itself is managing the booking or an external agency is handling it, you have the key to make it work.
How can TravelSpends help in improving my T&E?
Tripnomics is a technological tool powered by TravelSpends. It captures & analyses data in real-time which in turn results in transactions at the fairest of price points. This tool brings in a transparency between procurement of fares from multiple suppliers and its usage in business travel.
This goes to show that corporates do have what it takes to undertake a T&E audit and be well on their way to getting the best deals possible when it comes to travel expenses. Now isn’t that what travel and expense audit’s all about.