No business activity is complete without a formal explanation. Similarly, corporate travel audits make for a special place after the trip has been completed. A corporate travel audit is a systematic review and analysis of an organization’s travel-related expenses, policies, and procedures. This ensures compliance, efficiency, and cost-effectiveness of all the activities that were conducted during the trip. The primary goal of a travel audit is to identify areas for improvement, cost-saving opportunities, and potential policy violations. Here are the key steps involved in conducting a corporate travel audit.
Steps for corporate travel audit
1. Define objectives and scope
Corporate trips require planning and clearly defining the purpose of travel. The same is the case with the auditing of the trip. One should outline the audit report with scope. The scope or objective of the audit report can be framed around assessing the travel policy compliance and the cost of the trips and expense-saving opportunities. The report also concludes the adherence to legal regulations and evaluating the efficiency of the trip. It should tell about how well-optimized the trip was and determine the return on investment. The scope should be distributed as per the different departments of the company and each team should collaborate effectively in the report.
2. Review travel policies
Now that you have successfully defined the scope of the report, it is time to understand each point in detail. Travel admins should ensure to follow a checklist and compare it with the travel policy. You should examine the organization’s policy and make necessary changes in the trip of the policy whichever suits the requirement. Travel policy should be up to date and mention the objectives, rules, expense limits, preferred vendors, booking procedures, and reimbursement processes.
Suggested Read: Business Travel Policy: Importance, Benefits & Implementation
3. Analyze booking and reservation processes
While travel policy is important to provide an outline of corporate travel, one should also analyze the booking process. If the booking is automated with adherence to the travel policy, it can save a lot of valuable time for the admins and employees. Most online sites today are self-booking platforms giving the employees the opportunity and responsibility to book their trips. Travel admins should evaluate the methods employees use to book flights, accommodations, and transportation. They should ensure that employees are following established booking procedures and using approved channels.
4. Expense receipts and documentation
Travel admins and finance teams should check the accuracy and completeness of expense receipts and documentation submitted by employees. Ensuring that expenses are appropriately documented, and receipts match the claimed amounts helps in better analysis and reconciliations. You should verify compliance with policies regarding acceptable expenses and educate the employees about the non-reimbursable expenses.
5. Vendor and supplier compliance
While aligning the booking process saves time, choosing and reviewing the contracts with travel vendors will open new doors. Travel admins should ensure to land into fresh contracts. However, trust is more than money. Hence, you should always try to negotiate with your preferred and old suppliers. You should take advantage of any discounts, loyalty programs, or other cost-saving opportunities.
6. Compliance with legal and regulatory requirements
Policies are created to avoid any legal issues and regulatory complexity while traveling to foreign countries. This may include tax regulations, visa and immigration laws, and any industry-specific regulations. Additionally, employee education becomes necessary so that they are equipped with the right information and knowledge to tackle difficult situations.
7. Review approval processes
The effectiveness of the approval processes for travel requests and expenses is critical for gatekeeping of any trip. Teams should make sure that there are appropriate levels of authorization and that deviations from policy are adequately justified. Notifications about any travel requests help simplify the process and streamline the approval from various departments.
8. Assess travel risk management
Travel admins should review the organization’s travel risk management processes to ensure the safety and well-being of employees during travel. This may include emergency response plans, travel insurance, and communication protocols. You should assess the emergency if any happened on the trip and how it was tackled. Any issue in the response should be understood and reinforced with better techniques and tools.
Suggested Read: Why Is Travel Risk Management Solutions Needed By An Organization
9. Recommendations and action plan
Based on the audit findings, provide recommendations for improvement. Develop an action plan with clear steps and timelines for implementing changes. Prioritize recommendations based on their impact on cost savings, compliance, and overall efficiency.
Corporate travel audits are a necessary tool that helps in assessing and optimizing future corporate trips. Therefore, travel admins should make sincere efforts to benefit the organization in the best ways possible.
Corporate Travel Audits FAQs
What is a corporate travel audit?
A corporate travel audit is a systematic review and analysis of travel-related expenses of an organisation, policies, and procedures.
Why is a corporate travel audit important?
Corporate travel audits are crucial for identifying areas of improvement, cost-saving opportunities, and potential policy violations.
What are the key objectives of a corporate travel audit?
The primary objectives include assessing travel policy compliance, evaluating the cost of trips, identifying expense-saving opportunities, ensuring adherence to legal regulations, and determining the overall trip efficiency.
