They deal with too many variables that are impossible to control solely through human efforts when developing and implementing a comprehensive travel and expense policy. In addition, they deal with unreliable information, dishonest employees, and a range of approver leniency. In this article, you will find some common challenges to corporate travel management that finance officers face.
1. Financial reporting errors and expense fraud
Traditional travel and expense management relies heavily on the honesty of the staff. Employees can overstate costs without being discovered because the systems in place to verify them are inadequate.

Lack of transparency is one of the biggest obstacles to efficient corporate travel management, which directly contributes to the company's financial losses. The solution to this issue is the implementation of a spend management system that facilitates real-time expense tracking or simplifies accurate expense verification.
2. Inadequate information about travel policies
A company's travel and expense policy needs to be very specific. However, creating a comprehensive policy can be challenging for businesses that handle thousands of trips annually. The dissemination of this policy to all parties involved is the more difficult issue. Conflicts can arise if the hierarchy of approvals, spending caps, and authorizations are unclear.
3. Anticipated cost savings
The finance teams are also expected to reduce the overall travel costs of the companies as much as possible, as if tracking, organizing, and managing all company travel weren't enough. Given the rising costs of travel and lodging, it is challenging to implement these cost reductions. In addition to the exorbitant travel rates, overreporting payments and employment frauds raise the overall cost of travel.

Traditional travel expense management doesn't provide any tools for forecasting, analyzing, or lowering travel costs. Either no data exists in the repository used for analysis, or it is not exhaustive. Due to this lack of transparency, businesses suffer from budget overruns and money leaks.
4. Time and resource waste
Employee time and resources are wasted as a result of ineffective corporate travel management. The planning stage takes up a lot of time before the trip. When there are many approvers, communication becomes a time-consuming task.

The employees find it challenging to gather all the receipts and accurately record all the information while on the trip. Due to complex reimbursement policies and protracted payment cycles, the post-trip phase becomes more challenging.
5. Contaminated and decentralized data
Traditionally, the information provided by employees, vendors, and managers has been used in travel expense processing. The likelihood of inaccurate inputs increases when all of the data is manually entered. As a result, the final database is tainted with mistakes and might result in poor judgment.

The financial team is further burdened by all of the aforementioned challenges of corporate travel management. Their time is wasted on tedious, manual travel expense operations, and they are forced to fight an impossible battle with a broken system.
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