Effective T&E Policy Management for Mid-Market Firms

68% of firms use a manual method to enforce their T&E policy and analyze the employees monthly travel expenses. Manually monitoring and analyzing the employees monthly travel expenses is a daunting task. Corporate travel is critical for mid-market firms that rely on travel as part of normal business. In-person and on-site visits allow investment professionals to get first-hand insights into investment opportunities, it is also critical for due diligence and building and fostering relationships.  

For a mid-market firm, implementing best practices for a T&E policy involves having efficient travel and expense management processes in place. These processes are crucial for ensuring that travel expenses are reported accurately, analyzed effectively, and adhere to the company’s policies and regulations when employees are traveling.  With corporate travel comes the need for Travel & Expense policies. An effective T&E policy establishes a clear framework for managing employee travel and associated expenses, ensuring consistency, efficiency, and cost control.  

A Comprehensive T&E Policy  

A well-designed T&E policy should clearly define the company’s travel and expense guidelines, including what expenses are allowed, what documentation is required, and what approval process should be followed. The policy must be reviewed regularly and updated as needed to reflect the company’s changing needs and standards in the highly competitive world for talent (both retention and recruiting).  

Use Expense Management Software 

Implementing expense management software will automate and streamline the expense reporting process, reduce errors and fraud, and provide real-time visibility into expenses for the finance department. It also ensures a smoother travel expense, reporting, and tracking experience for the employee. With an expense management software, the back office will no longer need to manually monitor and analyze expenses to identify any unusual spending patterns, discrepancies, or potential fraud. Having this policy and software in place can help to detect and prevent fraudulent activities and ensure compliance with the company’s policies and regulations.  

Require Detailed Documentation 

If your firm decides to opt out of using an expense management software, all travel and expenses should be supported by detailed receipts, invoices, and other documentation requirements. The back -office should be regularly monitoring and reporting on the documentation.  

Set Clear Approval Processes  

Establish a clear approval process for expenses that requires employees to submit expense reports for review and approval before reimbursement. This helps to ensure the expenses are valid and authorized.  

Employee Policy Training  

Ensure that employees understand their responsibilities, are aware of the company’s policies and regulations, and know how to comply with them. Proper T&E Policy employee onboarding sessions are essential for the policy to be in practice, and for employees to stay up to date on the regulations.    

Compliance Procedures 

Establish compliance procedures to ensure that the company is complying with applicable laws and regulations, including tax regulations and anti-corruption laws. This can help to mitigate legal and repetitional risks.  

Implementing best practices for T&E policy, expense management processes, and controls is critical to ensuring that employees are traveling and incurring expenses in a way that is compliant, efficient, and cost-effective. By following these practices, organizations can reduce risks, save time and money, and foster a culture of transparency and accountability.     

Concertiv provides travel policy benchmarking based on mid-market peer firms who have similar travel behaviors and spend to help your firm make informed decisions and develop cost-saving initiatives. Some items that should be reviewed annually are hotel nightly rate caps, airline booking policy per level, and preferred black car vendors. With industry prices and trends constantly changing, it’s important to have the most up-to-date travel policy that’s in line with peer firms – Concertiv can help you stay in the know!  

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