Efficiency and liquidity: keys to optimal travel expense management
Implementing digital tools for business travel can be slow and expensive, often taking months due to high costs and complex integration. As a result, many companies end up without a complete solution for managing travel and entertainment expenses.
Ironically, this inefficiency contradicts a distinct trend in business travel post-2020: cost-effectiveness. Businesses seek to lessen trip frequency and prolong durations for optimal value. Quality now trumps quantity, emphasizing the highest return on investment. This is where digital tools become indispensable.
Simplify your travels with an expense management tool
Travel expense management applications offer a solution at the crossroads of these two trends. Unlike most digitization processes with lengthy integrations, these applications are easy to implement throughout a company. They function as standalone systems, impacting only travel expense management while seamlessly integrating with your ERP system.
Expense management apps significantly improve the travel experience and are easy to implement and use. With a user-friendly interface and intuitive design, they minimize the learning curve, saving employees a significant amount of time from the very beginning.
Expense management is either a breeze or a headache. A Banyan study highlights the positive impact of these tools: 32% of respondents would rather visit the dentist than prepare expense reports. Making it easy is the key.
Companies also benefit from effective control over travel policies, preventing overspending, duplication, and fraud. Thanks to the digital centralization of all reports, supervisors can efficiently and accurately approve claims without sifting through mountains of paperwork.
Centralized data extraction also makes expense report creation easier, allowing managers to craft insightful reports that guide cost-saving and efficiency efforts, cutting down expenses and improving travel performance.
Improve cash flow with VAT recovery
Travel expense management applications go beyond saving money through policy adherence and expense reporting visibility. They also unlock another direct way to generate cash: VAT reclaim.
VAT reclaim is a benefit many companies overlook. While VAT deduction on travel expenses is a right for all businesses, many fail to take advantage of it or do so inefficiently. Specialized VAT recovery companies can quickly help you overcome three main obstacles.
The first obstacle is a lack of awareness or priority. With VAT recovery, attention is focused on supplier payments due to their larger amounts while overlooking travel and entertainment expenses. This failure results in European companies losing a substantial €20 billion yearly.
The second common obstacle is a lack of internal resources. Companies may abandon VAT recovery efforts or rely solely on high-cost expenses, neglecting the potential of recovering smaller amounts that add up significantly.
Companies may disregard expenses documented only by receipts, not invoices. Depending on the country and amount, receipts may not be valid for tax purposes. VAT recovery companies, with dedicated teams, can efficiently contact various suppliers (restaurants, taxis, hotels, etc.) to request the corresponding invoices, eliminating this burden for the company.
Finally, companies may fear audits. However, a VAT recovery service not only guarantees correct VAT deduction (both formally through valid receipts and from a deductibility standpoint thanks to tax expert oversight) but also creates a clear audit trail for any expense justification required by local authorities.
Overall, a VAT recovery service ensures proper expense deductions while maximizing cash flow without requiring significant time or resource investment from the company.
An end-to-end solution for your travel expenses
The combination of expense management applications and VAT recovery services provides the perfect solution to optimize business travel's efficiency and cost-effectiveness. While presented as separate solutions, they function seamlessly together as a unified solution for clients thanks to their complete integration. Depending on the country's legislation, VAT recovered from previous and future years can finance the implementation of expense management tools.
The alliance between Expensya and 60dias exemplifies this approach. Centralizing expense entry and payment generation from mobile phones saves travelers both time and effort. Once expenses are approved, the VAT recovery process is automatically launched, particularly for receipt-based expenses that require direct contact with suppliers for valid invoices.
This integrated solution generates cash flow through VAT recovery while driving savings through adherence to company spending policies.
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