Although managers manage departments, they must collaborate with other company members and departments. Operations managers have a lot of responsibilities on their plates. Among them is keeping track of expenses.
More specifically, you’ll keep track of the company’s travel expenses.
Most corporations and enterprises can afford to keep a travel department afloat without too many financial hiccups. However, even large companies must keep an eye on expenses.
Let’s look at how operations managers can stay on top of their company’s travel expenses.
Make Friends with the Corporate Travel Manager
To manage the company’s travel expenses, you’ll work closely with the corporate travel manager. Therefore, it helps to have a good working relationship with them.
The corporate travel planner puts together travel itineraries for the company. They also negotiate with vendors, hospitality partners, and transportation providers.
When team members return from their trips, the planners receive the expense reports. Then, they review them and approve the reports for reimbursement.
Operations managers benefit from reviewing summaries of expense reports. It’s one way to ensure that the expenses don’t surpass the allotted budget. Plus, you can spot trends. Inflation hit several sectors, especially gasoline prices.
For a while, companies that reimburse mileage and driving expenses had to make adjustments, and needed buy-in from managers and staff.
Hotel Engine provides an overview of per diem taxes for your information.
Use Technology
Bookkeeping and accounting software has existed for a couple of decades. For example, Quickbooks launched in 1998. In 2022, software exists for every industry and business need.
Therefore, operations managers should become comfortable using a version that fits their needs. In addition to software, adopt other technology to stay on top of expenses, such as a smartphone, laptop, and tablet.
Electronic devices become more efficient when you couple them with productivity software. They allow the software to run efficiently and help you compile important reports.
For example, compiling reports allows you to spot additional trends. Once you see them, you can take action to rectify the issues. You might spot cost-saving strategies that one department has employed that could benefit the rest of the company.
Set Limits
Since operations managers have a hand in managing the company’s expenses, set limits. Then, follow up by reviewing expense reports.
Setting limits means placing a cap on other departments, including travel. When you set them, you want to ensure that you have buy-in from the other managers.
Sometimes it’s easy to implement the limits because they make sense. Other times, they can cause strain for the manager because the limits will elicit reactions from travelers.
The prices of hotels continue increasing post-COVID. That’s not the fault of your team members. Instead, it’s a hurdle that everyone must jump over together.
The corporate travel manager can try negotiating better rates with their hospitality partners. Planners can also attempt to establish flat rates with hotels for a certain number of reserved rooms annually.
Asking corporate travelers to cut back could cause them to groan since they might already watch their spending.
Successful operations managers set limits and provide solutions so team members remain under them.
Share Information
The operations manager might find out that budget cuts need to be made before any department heads. Executives might roll out mandates that you must incorporate into travel budgets. Therefore, share information with them.
Communication is an art. If you need to set limits, share why you chose them. Communicating the information might still elicit pushback. However, you took stakeholders through the process.
If department heads listen to your presentation, that’s half the battle. Working together to achieve goals is the other half.
Sometimes companies must tighten their belts because their data shows that a bad quarter is on the horizon. To avoid layoffs, cutting costs in other areas might release some pressure.
More importantly, sharing information keeps the lines of communication open with your colleagues. They can provide feedback and tell you when something isn’t working or achievable. Then, you can work together to push through it.
Conclusion
Operations managers carry a lot of weight on their shoulders. Luckily, it’s possible to stay on top of things, including the company’s travel expenses, through several strategies. Keep the lines of communication open with your colleagues and employ software to help you compile and analyze data.
