According to new research, business dining is one of the least managed areas of corporate expenses, representing about 10% of annual travel and expense spend for a corporation. About 40% of respondents to the survey conducted by Dinova LLC, along with The BTN Group, said their companies spend at least $1 million on meals and entertainment a year.
Businesses are spending more frequently on company meals and turning to catering or large group delivery orders. Thirty-nine percent of companies said budgets for corporate meal spend have increased in the last year, yet over fifty-percent have indicated no analysis or focus in this area to identify cost savings.
“With 80 percent of respondents indicating business dining expenses within their organization are reported to senior management, it’s advantageous for travel managers to reclaim a portion of the overall company dining spend,” said Vic Macchio Founder and CEO at Dinova. “We estimate the business dining spend to be around $60 billion, and the ability to manage this spend is critical in overall T&E savings. It’s found money!”
So how can travel and expense management solutions help companies identify areas such as these?
- Automation – companies need automation that simultaneously eliminate wasted effort while delivering command visibility for compliance and auditing.
- Visibility – excessive spending can quickly shrink profit margins, and inappropriate expenditures can lead to regulatory issues.
- Built-in reporting system – this displays various views of spending trends and helps identify potential budgetary issues.
- Auditing capabilities – such capabilities allow for automatically finding suspect expenses as well as random samples for review.
Don’t let expensive corporate meals go unnoticed, or any miscellaneous corporate spending for that matter. For more information on Apptricity Travel and Expense, call 214.596.0601, or check out the latest on-demand webinar to hear expert opinions on the must-haves for travel and expense management software.