The role of a CFO is constantly evolving. In today's business world, CFOs are responsible for more than just financial planning and analysis. They are also responsible for optimizing travel expenses in order to save the company money. This can be a difficult task, but with the right tools and strategies in place, it can be done. In this blog post, we will discuss how CFOs can optimize travel expenses and save their company money.
The Reality Behind Business Travel
Business travel can be expensive. In fact, it is one of the most significant expenses for most companies. However, it's also usually one of the most necessary expenses for companies as well. After all, business travel is essential for meeting with clients, prospects, and partners. It can also be necessary for attending conferences and networking events.
For many CFOs, the challenge is not to eliminate business travel altogether. Instead, the goal is to find ways to reduce the cost of business travel and automate the challenges associated with it without compromising its necessity.
Travel Challenges For A CFO
There are many challenges that a CFO faces when it comes to managing business travel expenses, including:
The first challenge is creating and sticking to a travel budget. This can be difficult, as business travel expenses can quickly add up. It's important to find ways to cut costs without cutting corners. However, employees and customers should never feel the pinch of cost-cutting measures. This means that CFOs must be creative in their approach to budgeting for business travel.
The second challenge is ensuring that employees are accountable for their travel expenses. This can be difficult, as many employees view business travel as a perk rather than a responsibility. CFOs must find ways to ensure that employees understand the importance of being mindful of travel expenses.
Another challenge is ensuring that employees are comfortable and safe while they are traveling. This includes making sure that they have the right accommodations and that their travel itineraries are planned in a way that minimizes stress. For example, most employees will not feel comfortable staying in a Motel 6, but that doesn't mean you need to host them at the Ritz Carlton either.
A fourth challenge is giving employees the freedom to book their own travel while still being able to control costs. This can be difficult to do, as you don't want employees booking first-class flights and five-star hotels on the company dime. However, it's essential to find a balance between control and freedom. For example, travelers may have different preferences on what they like to eat, how they want to travel, etc. Allowing them some leeway in these areas can go a long way in making them feel comfortable and reducing stress levels.
Follow The Company's Travel Policy
Finally, it's essential to make sure that employees are following the company's travel policy. This includes things like booking travel through the company's preferred vendors and using the company's corporate card for all expenses.
Tips To Have A Great Business Travel Management
If your business is currently struggling with the management of business travel, here are a few tips that may help:
Have An Automated Travel And Expense Policy
One of the best ways to manage business travel expenses is to have an automated travel and expense policy. This will allow you to control costs while still giving employees the freedom to book their own travel. A travel and expense policy lays out all of the rules and guidelines for business travel, including what expenses are covered and how they should be reported. This makes it simple for employees to follow the policy and easy for you to track and manage costs.
Traveler Freedom To Choose Based On The Policy
While it's important to have a travel and expense policy in place, it's also important to give employees some freedom when it comes to booking their travel. After all, they are the ones who will be doing the actual traveling. Allowing them to choose based on the policy laid out will make them feel more comfortable and less stressed while they are on the road. For example, if your policy allows up to $35 per meal, employees can choose where they want to eat based on the budget provided.
Make It Easy To Track Travel Expenses
Having to keep track of business travel expenses manually can be a hassle. Fortunately, many software programs and apps can make it easy to track travel expenses. This way, you can focus on more important things, like running your business. For example, Jenji is a popular program that allows users to track their expenses, create reports, and submit receipts.
Importance Of Implementing A Travel And Expense Management System
If you want to save time and money, it's crucial to have a travel and expense management system in place. This will allow you to control costs, book travel easily and track expenses. Having a system in place will also make it easy for employees to follow the company's travel policy.
With Jenji, business travel has never been easier to manage! Jenji is a cloud-based travel and expense management software that makes it easy to track expenses, submit receipts, and create reports. With Jenji, you can be sure that your business is spending its money wisely. If you want to learn more about how Jenji can help your business, click here.