Ensuring compliance with travel & expense automation in energy & utilities

Every energy and utilities company must adhere to strict regulations that enforce safety standards, ensure operational integrity, and limit service disruptions. However, according to a recent survey, 34% say their current T&E solution will not meet these requirements as they evolve over the next two years. Without updated systems, these companies face severe penalties for noncompliance, including operational shutdowns, loss of certification or contracts, monetary fines, and more.

Why Manual T&E Systems Threaten Compliance and Sustainability Reporting

To ensure safety, reliability, and efficiency of operations, the energy and utilities industry is subject to security mandates and regulations like NERC Critical Infrastructure Protection standards. In addition to these mandates, energy and utilities companies must also comply with sustainability guidelines like the Carbon Disclosure Project, Sustainability Accounting Standards Board, and Global Reporting Initiative. Almost all (96%) of industry leaders say there are specific sustainability guidelines their organization follows, and almost half (44%) say capturing sustainability data for internal and external reporting isn’t just a benefit, but a requirement of their organization's T&E solution. However, more than a third (33%) use a solution that doesn’t support sustainability tracking or other environmentally conscious      features.  And with new environmental, social, and governance (ESG) regulations being implemented by the Securities and Exchange Commission, many employees doubt their company’s ability to meet these requirements, with less than half (45.7%) of professionals expressing confidence.

In an industry with so many moving parts and pressure to maintain consistent service, investing in new financial management systems might seem like a costly distraction. However, relying on manual systems can be devastating to the long-term health of these organizations. Not only are they prone to error, they also make it impossible to keep up with the ever-changing regulatory landscape.

Strengthening Cybersecurity and Reducing Compliance Risk in Energy and Utilities

As cybersecurity threats grow more sophisticated as technology evolves, advanced security measures are a must-have in the energy and utilities sector. In fact, 20% of industry leaders say data security is a requirement for an updated system. Without it, the company is subject to attacks that jeopardize sensitive information, disrupt critical operations, and impact public safety.

On top of being a compliance risk, manual processes are a chore, taking time and resources away from other functions. In fact, more than a quarter of energy and utilities leaders say their AP (29%) or T&E (28%) solution is difficult for employees to use, creating tedious, time-consuming tasks and reducing efficiency.

Mitigating Audit Risks & Improving Invoice Management for Regulated Industries

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How Automation and AI Tools Streamline Accounts Payable and Expense Reporting

Automation can relieve administrative strain and allow employees to focus on more strategic initiatives. According to SAP Concur data, accounts payable automation can save 12 hours a week per finance or accounting employee, as opposed to 13 hours spent processing vendor invoices each week. It also provides the flexibility companies need to adapt to evolving regulations and remain compliant without disrupting existing workflows.

AI-driven tools can automatically create expense reports and reduce manual data entry and errors, and even enforce travel and expense compliance in real time. Predictive analytics can study historical data to provide accurate budgeting and forecasting, and machine learning algorithms can analyze expense reports for anomalies and flag potential noncompliance. All of which leads to significant time and cost savings, improved financial oversight, and a more streamlined and user-friendly expense management process.

How to Enhance Cybersecurity, Audit, and Sustainability Data Reporting With Automated AP Tools

An automated AP solution is key to mitigating audit risks and other liabilities.To protect against ransomware and Advanced Persistent Threats (APTs) that threaten company cybersecurity, automated finance management tools use malware detection, anomaly identification, and real-time monitoring. They also have built-in safeguards like fraud detection, compliance checks, and data encryption to seamlessly protect sensitive information. These features make it easier to spot and address discrepancies, which simplifies the auditing process, maintains compliance, and saves time.   To protect against ransomware and Advanced Persistent Threats (APTs) that threaten company cybersecurity, automated finance management tools use malware detection, anomaly identification, and real-time monitoring. They also have built-in safeguards like fraud detection, compliance checks, and data encryption to seamlessly protect sensitive information. These features make it easier to spot and address discrepancies, which simplifies the auditing process, maintains compliance, and saves time. 

Additionally, an automated system provides the infrastructure needed to accurately track and report company sustainability data. It can also embed approvals and guidelines into travel planning and send in-app reminders to guide employees toward sustainable options. Plus, an integrated solution can connect all spending data, giving the company a clear view of how money is being spent and whether or not it complies with sustainability policies.

Ensuring Compliance in the Energy and Utilities Industry with Spend Management Technology

Modern society needs the energy and utilities industry – and the industry needs modern spend management technology. An automated, integrated system ensures compliance with safety and sustainability regulations, enhances security, and reduces administrative burdens. All of which protect the organization from noncompliance and power it into the future.

Ensure compliance, enhance security, and streamline operations with SAP Concur. See how SAP Concur solutions help energy and utilities organizations manage risk, control costs, and stay audit-ready.