Expense management is one of the top line items costing companies and impacting their bottom line. The cost of one-size-fits-all approaches to expense management are significant to the extent that they’re no longer proving ROI to businesses. In fact, they’re pushing business leaders to find new solutions that lower costs and create efficiencies in the process.
Benefiting the bottom line
For companies actively involved in cost savings initiatives, mileage reimbursement should be the next area of focus to uncover hidden costs. Personalized mileage reimbursement solutions — rather than one-size-fits-all approaches — have proven to reduce costs and improve processes. Research from Aberdeen Group finds that companies experience savings around 20%-30% for mileage reimbursement when they take a personalized approach. These savings from mileage reimbursement are significant enough to reduce the overall T&E spend for a business. When the T&E spend is reduced, that budget available to invest in other areas of the business.
In addition to discovering cost savings, companies who implement personalized mileage reimbursement solutions create more efficient processes. Leveraging a technology platform to reimburse all business expenses — including mileage — automates processes and uncovers time savings for the employees and their managers. For example, having a fully connected platform for expense reimbursement simplifies the invoice process and provides more visibility into spend in real-time.
Streamlining with technology
Reimbursing mileage based on the exact cost of driving for business – specific to the individual, location and vehicle – is the next frontier for reducing T&E expenses for businesses. Technology offers business leaders a way of calculating these exact costs while streamlining the submission and reimbursement process. Using technology with a personalized mileage reimbursement approach allows companies to save time and money – proving ROI much faster than one-size-fits-all approaches.
How do businesses make the switch from a one-size-fits-all approach to personalized reimbursements? Technology solutions offer the necessary elements to introduce a personalized mileage reimbursement process. For example, cloud-based technology platforms allow for real-time data for things like gas prices across different regions. This gives companies the information needed to calculate both the fixed and variable costs of driving for business – personalized mileage reimbursement. Another example is automating the mileage submission process for employees to easily submit their mileage for approval.
Interested in learning more about the keys to success for personalized mileage reimbursement? Check out the guide for improving the mileage reimbursement process and expense management costs based on research from Aberdeen Group.