3 Ways to Say Goodbye to Hidden Travel Costs

Managing your travel expenses is a crucial way of cutting down your company’s costs. In fact, travel expenses are the second most difficult operating expense line item for businesses to control.

So, whether you require transport services for your customers, staff movement or delivery and collection of company materials, it’s important your company’s travel costs are managed effectively.

By considering your hidden travel costs and how best to manage them, you can save on wasted time and money.

As critical as ground transportation is for companies moving employees from A to B, it may be surprising to hear that only very few organisations have a true understanding of the hidden costs surrounding their business travel.

Whether your business requires travel services for customers staff movement or for delivery and collection of company materials, you’ll find the time and cost impact this can have on your business to be significant.

Here we consider those implications in greater detail addressing both the common challenges businesses incur and the tips to help solve them.

1. Put adequate expense policies in place

Travel expenses are the second most difficult operating expense line item for businesses to control so how best do you control them?

The most common areas abused are increasing mileage expenses, falsifying taxi receipts and claiming unpaid tips.

Your employees are not intentionally setting out to defraud your company however pushing the boundaries is an expensive business, which is why companies are requiring more assistance in approaching the issue.

Tip 1: Ensuring you have a relevant and up-to-date expense account policy is an essential component of preventing the embellishing of company expenses. So too is implementing a managed transport service for your business, helping to remove the risk of claiming ‘errors’, while gaining a consolidated invoice, offering better visibility of transport costs (such as taxi costs) across the business.

2. Reduce time spent processing expense claims

The admin task of processing expense claims is a weight most organisations carry, in fact, new research shows UK employees spend 441,827,088 days a year on ‘time wasting’ office tasks such as completing unnecessary admin.

The ‘Productivity in the Workplace’ report states that ‘too much admin’ takes up a whopping 38 per cent and comes in 2nd place of the top five areas employees confirmed to restrict them from doing their job well, others include:

  1. Too many meetings take place and go on for too long (46 per cent)
  2. Too much admin (38 per cent)
  3. Too many emails (29 per cent)
  4. People management i.e. misbehaving colleagues (25 per cent)
  5. Technology is slow (24 per cent)

Tip 2: Finding a system that reduces the time your staff spend on completing time-wasting admin is a necessity. Swapping paper receipts and spreadsheets with super-fast and accurate technical processes reduces the time your staff are filling in expense claims when they can be growing your business.

3. Gain control with accurate reporting

Hidden travel costs contribute to a large factor of wasted time and money for a great deal of UK based businesses. For instance, providing a blank receipt leaves organisations exposed to a number of issues when reconciling expense claims. Other common problems include:

  • Companies not having a defined travel expense policy
  • Employees forgetting their travel charge before writing it down
  • Staff rounding up travel expenses on average by up to 25%
  • Employees over-claiming on tips

Such challenges can lead to potential discrepancies and over-claiming, whether intentional or not, particularly when concerning the rounding up of taxi receipts and tips. Poor reporting can also contribute to a lack of control and bad visibility.

Tip 3: Using a managed service that includes a reporting facility will help to increase overall visibility of travel expenditure within your business, helping to remove the risk of lost receipts, round up fares and gain a better view of tips given.

So, what's the solution?

For those in search of a trusted and reliable ground transportation service, Transport Innovation offer UGO Business; a bespoke booking platform, designed to provide a simple vehicle ordering facility that engages with multiple trusted operators. Whatever you need your business account for; UGO Business will give you a better service at the same time as lowering your costs and giving you greater control of your business expenses.

Learn more about UGO Business