Harvest
Expenses
Sign up

Gartner Travel and Expense Management

Harvest simplifies time tracking and invoicing, addressing the complexities of travel and expense management. With Harvest, businesses can streamline their processes and minimize errors.

Start for free
  • Attach receipts to projects & tasks
  • Turn tracked expenses into client invoices
  • Free 30-day trial, no credit card needed

or drag & drop • Images and PDFs, max 10 MB

The Growing Importance of Travel and Expense Management

Travel and expense management has become a critical component of business operations, with the market projected to reach USD 11.7 billion by 2031, growing at a CAGR of 17.32%. Over 75% of businesses prioritize optimizing their travel and expense processes, aiming to reduce costs and increase efficiency. Despite advancements, 43% of companies still rely on manual processes, which are prone to errors and inefficiencies. By embracing modern solutions, businesses can benefit from real-time data and seamless experiences, crucial for today’s distributed workforce.

The shift towards cloud-based solutions is notable, with these systems expected to hold 73.92% of the market share by 2025. This transformation is driven by the need for agility and integrated platforms that streamline travel and expense management. Automating these processes can significantly improve submission times, with mobile-first reporting leading to a 40% reduction in delays.

Challenges in Manual Expense Management

Many organizations continue to manage travel and expenses through basic reimbursement processes, leading to missed opportunities for strategic cost optimization. Companies like AirFlite, dealing with high volumes of travel, often face error-prone, time-consuming tasks. These manual processes can obscure visibility into spending, making it difficult to identify cost-saving opportunities.

Implementing automated solutions can address these challenges by harmonizing travel and expense processes. For instance, a top IT services company in India achieved a 25% cost saving by standardizing their approach. Automated systems ensure expenses are tracked accurately, reducing the time and resources needed for reconciliation and improving overall efficiency.

The Role of Compliance in Travel and Expense Management

Compliance with legal and corporate policies is a significant aspect of travel and expense management. Businesses must adhere to various regulations, such as the Internal Revenue Code in the U.S., which requires maintaining records for several years. Similarly, the EU’s Corporate Sustainability Reporting Directive mandates disclosure of travel expenses, impacting financial reporting.

Non-compliance can lead to severe consequences, including financial penalties and operational disruptions. For example, failing to meet EU travel regulations can affect employees' social benefits and work permissions. Therefore, integrating compliance checks into expense management systems is essential for organizations seeking to mitigate risks and ensure adherence to all relevant policies.

Strategies for Effective Travel and Expense Management

To optimize travel and expense management, businesses should develop clear policies outlining spending limits, preferred vendors, and approval processes. This approach prevents uncontrolled spending and ensures consistency across the organization. Encouraging the use of corporate cards for all business-related expenses can increase visibility and simplify VAT recovery.

Automated solutions offer a centralized platform for managing travel expenses, reducing human error, and speeding up approvals. By integrating these systems with existing business tools like ERP and accounting software, companies can automate data transfer and ensure accurate, timely reporting and reimbursement. Pre-approvals and role-based spending limits further enhance control over travel budgets, aligning expenses with strategic objectives.

Optimize with Harvest

Harvest helps streamline time tracking and invoicing, key aspects of effective travel and expense management.

Screenshot of Harvest dashboard showing time tracking and invoicing features.

Gartner Travel and Expense Management FAQs

  • The global travel and expense management market is valued at approximately USD 4.8 billion and is projected to reach USD 11.7 billion by 2031, growing at a CAGR of 17.32%.

  • Cloud-based solutions are crucial as they offer agility and real-time data, which are essential for managing expenses efficiently. By 2025, these solutions are expected to dominate the market with a 73.92% share.

  • Automated systems streamline the process, reducing errors and submission times. For example, mobile-first reporting can cut submission times by 40%, enhancing overall efficiency.

  • Businesses must adhere to regulations such as the Internal Revenue Code in the U.S. and the EU’s Corporate Sustainability Reporting Directive, which require detailed documentation and reporting of travel expenses.

  • Harvest offers tools for time tracking and invoicing, simplifying the travel and expense management process by reducing errors and enhancing efficiency in business operations.

  • Implementing clear policies, using corporate cards for expenses, and integrating automated solutions with existing systems are key strategies for effective travel expense management.

  • Non-compliance can lead to financial penalties and operational disruptions, such as issues with employee benefits and work permissions, especially in the EU and U.S. markets.