In today’s business environment which is marked by economic headwinds and geopolitical uncertainties, finance teams are under immense pressure to optimise every dollar spent.
Travel and expense (T&E) is increasingly becoming an area of scrutiny as companies look hard for avenues to trim costs. Organisations’ bid to curtail travel and spending, however, has to be weighed against the ongoing need for strategic trips that support business goals.
By the same token, even though there may be immediate savings by retaining current manual or fragmented T&E processes, finance leaders must consider such systems’ longer-term impact on business decision-making and compliance.
According to SAP Concur and FutureCFO’s recent C-suite survey of 100 finance leaders from across the ASEAN region, T&E cost control is a top strategic priority, and the lack of visibility is the biggest roadblock to T&E efficiency.
The survey found several priorities among ASEAN finance leaders:
- Cost control is paramount: The respondents’ strong emphasis (45% of respondents) on cost reduction signals a concerted effort to optimise budgets and weather potential headwinds amid uncertain economic times. Businesses need to consider a re-examination of spending patterns and justification on every travel expenditure, to better optimise budgets and prioritise travel that aligns with strategic business needs.
- Compliance cannot be compromised: With heightened scrutiny from internal stakeholders and external regulators, businesses need to ensure that robust T&E policies and controls are in place to mitigate risks, adhere to tax regulations, and satisfy all stakeholders when it comes to compliance. Some 41% of respondents shared that their finance teams need tools that can improve and facilitate seamless T&E compliance.
- Manual processes are liabilities: Outdated systems create bottlenecks, increase errors, and hinder effective decision-making. Finance leaders have a clear focus on automation (41% of respondents), suggesting a broad-based desire to streamline T&E processes. Automation adoption will reduce manual errors, improve efficiency, streamline workflows, and free up valuable finance resources for higher-value tasks. While 15% of leaders also shared that employee satisfaction remains a consideration for 2024, it is clear that finance leaders are prioritising operational efficiency and risk mitigation amid broader business pressures.
- Visibility is the key to data-driven T&E: The lack of visibility into T&E spend continues to remain a critical roadblock for finance teams, with 35% of respondents citing it as their top challenge. The downstream effects of continued reliance on manual processes are clear, with 32% of respondents sharing how they struggled with time-consuming processes.
Some 38% of finance leaders also cited visibility as a key concern, as they highlighted how their businesses need data on T&E spending patterns for business decision-making. Especially useful will be modern T&E solutions that give their teams real-time insights into spending trends – this will let them proactively identify cost savings opportunities, make informed adjustments, and ensure alignment with the business's broader goals. - The sustainability gap: The surprisingly low concern for sustainability within T&E (11%) is a potential blind spot for many finance teams. The misalignment of businesses with the growing focus on Scope 3 emissions and overall ESG commitments may indicate low awareness, or inadequate strategies, to reduce the environmental impact of travel.
As ESG considerations come to the fore, ASEAN businesses need to start considering proactive strategies to manage travel-related carbon emissions  ̶ these may soon become essential criteria for responsible business practices.
Modern technology can help finance teams address critical pain points such as limited spend visibility and manual processes, and achieve strategic priorities that include cost reduction, compliance and business growth.
Technology exists for many applications, from automating workflows to enhance efficiency; streamlining business processes to drive cost savings; automating policy enforcement to strengthen compliance; to tracking travel emissions to improve sustainability. Through technology, finance teams will be able to provide business leaders with reliable and timely data, enabling them to make informed decisions that drive organisational growth.
As economic pressures and compliance demands make themselves felt, finance teams that recognise and harness the transformative potential of T&E technology will be well-positioned to optimise spending, strengthen controls, and drive strategic and tangible value within their organisations.
