Like most areas of business expenditure, the costs involved in travel expenses can be optimized in order to minimize them for the following financial year. To do so, it is important to track the expenses generated according to categories on a monthly basis. Monitoring in this way will provide a basis for future analysis into expense optimization.
To be able to carry out this study, it is crucial to take great care when organizing the data, making each amount and its origin extremely clear on the expense report. In addition, a meticulous storage system must be in place that is easy to access. Much better if it is computerized!
However, what data should we track? A set of sections or categories that prevail in our company must be clearly defined, such as allowances, fuel and accommodation, before conducting an analysis of how expenses can be minimized in each of these. Therefore, if we have an amount that has been spent on petrol, for instance, we could buy packs that would work out cheaper for us.
If this data is digitally stored month-by-month, their supervision can be more immediate and consumption can be restructured as soon as there is some type of leak.
How to reduce the monthly cost per employee
It is vital that the company knows the proportion of overall travel expenses incurred by each employee. To discover the optimal mobility expenses for each employee, we have to analyse the return on the project, in comparison to the expenses that it generates.
For instance, if there is a pharmaceutical salesperson who visits ten customers a day and reports revenue of €200 but the visits generate €400 in expenses, the procedure is not viable. To resolve such an issue, the number of in-company visits could be reduced and replaced by telephone calls. Such analysis can help to reduce costs at employee level.
Expense supervision both by categories and by employee will enable the company to discover where the expense leaks are and implement a solution.
