A new report, from Insights For Professionals (IFP) in collaboration with Payhawk, finds that 36% of respondents were extremely or very concerned about the amount of corporate spending in their organisation. Meanwhile, only 51% of senior professionals said their spend management effectiveness was ‘very good’.
The report revealed that senior professionals are concerned about the state of spend management and a lack of business expense visibility across multiple solutions in their organisations, despite the technological improvements that have made paper processes and manual work a thing of the past.
Companies of all sizes are facing challenges with their corporate spending and human error topped the list with 29% of respondents citing it as a major challenge. The survey, which was commissioned by Payhawk - the company that makes business payments easy - found the other challenges were time wasted on reconciliation, resistance to change, ineffective software, and inefficient and/or legacy processes.
Hristo Borisov, CEO and Co-Founder of Payhawk said, “Corporate spending used to be managed with piles of paper, and receipts and invoices that were filed by hand. Those days are long gone, and businesses can be proactive in their approach to spend management. However, despite the massive improvements that have come with digitalisation, companies are still facing numerous challenges and senior professionals are right to be concerned about the current state of corporate spending.”
The IFP research focused on uncovering attitudes to corporate spending and surveyed over 100 senior professionals in the US and the UK across more than 11 industries, including finance, health, education and manufacturing. The company size of those interviewed ranged from 250 employees to companies with over 25,000 employees.
Aside from the challenges companies face, senior managers expressed how important visibility was and how understanding how money is being spent is a crucial part of their role. Of all the professionals surveyed, 51% said they had ‘very good’ visibility into company spend, but this figure dropped to 38% for professionals in large organisations.
Borisov added, “Senior professionals are bogged down with inefficiencies and a lack of up-to-date, accurate information about their corporate spending. With the right processes in place, and right information at their fingertips, they will be able to make clear, strategic decisions about how their organisation’s money is being spent. With greater automation and efficiencies in place, they will have more time to focus on more important things.”
The report noted that organisations will have to invest in spend management initiatives to overcome the current challenges they face. The majority of those surveyed said they would invest in the next year, with 22% stating they planned to invest $500,000 and $1 million in such initiatives. Through such investment, the respondents said they aimed to have better internal spend controls, improve efficiency and minimise risk. “By having the right technologies and initiatives, every organisation can improve their spend management process,” said Borisov.
Curious to discover other insights from the IFP report? Download it here.
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