Corporate travel is a significant expense for Private Equity and Investment Banks as the average US domestic business travel expense was $1,293 in 2022. With the amount of travel that both Private Equity and Investment Banks do, it becomes a large expense for these types of firms.
For CFOs, it can be hard to keep track of every business travel expense with many deal makers traveling at once without the proper travel spend reports in practice. Travel spend reports are critical to help ensure cost control and optimization, travel policy compliance, manage risk, and to stay in line with the company's budget and financial goals. To help with managing corporate travel spend as a CFO, there are a few different types of reports to consider to stay on top of your firm's corporate travel spend.
Key Performance Indicators (KPIs)
The CFO needs to establish and monitor KPIs related to travel spend, such as travel cost per employee or per department, travel savings achieved, and travel policy compliance. These KPIs can help the CFO to measure the effectiveness of the company’s travel spend management and identify areas for improvement.
Travel Expense and Vendor Spend Reports
The CFO needs to review the expense reports submitted by employees to ensure that all expenses are legitimate, authorized, and compliant with the company’s travel policies.
It is important to review the vendor spending reports from airlines, hotels, and transportation rental companies to ensure that your firm is getting the best deal and rates. In order to get the best deals, the CFO should also track the performance of the vendors used and negotiate contracts to optimize the cost savings and identify any trends or patterns with vendors rates.
Forecasting reports are helpful for ensuring that they are in line with the company’s financial goals and objectives. Identifying any variances from the travel budget can help with forecasting the budget and guide corrective action if necessary.
It is critical that the CFO reviews compliance reports to ensure that the company is abiding with all applicable laws, regulations, and internal travel policies. Identifying areas of non-compliance requires corrective action to mitigate risks. Proactively reviewing compliance reports can help decrease travel spend, increase savings, and significantly increase duty of care for the firm. Knowing how, when, and where your employees are traveling is extremely important and can lead to an overall, more efficient and profitable company.
It is key for CFOs to review various types of reporting related to corporate travel spend to ensure that the company is managing travel expenses effectively and efficiently. By analyzing the data and identifying opportunities for cost savings and process improvements, the CFO can help the company to achieve its financial goals and optimize its travel spend management.
Concertiv works with your firm and travel agency to ensure all required data and reporting are available and visible to all necessary team members on a recurring basis. Concertiv also supports in analyzing this travel data to help determine the best travel policy decisions for your firm. Let us help in ensuring your firm receives the necessary reporting and insights to help make informed business decisions.
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