Byline from Immy Spence, Head of SME Growth at Airwallex
UK finance leaders are facing a host of challenges, from supply chain disruptions and cybersecurity vulnerabilities to cash flow monitoring and forecasting. However, spend management has emerged as a critical thread that underpins many of these problems, and leaders need cohesion to tackle these issues.
The reality is that 90% of finance leaders are dissatisfied with their current spend management solutions. This frustration stems from a lack of control, visibility and automation, issues that are further compounded by fragmented systems hindering business growth. The reality is, UK finance leaders face significant hurdles in effectively managing their spending, and these challenges must be addressed before they can truly unlock the potential of their organisations.
Paying and receiving payments are the basis of any successful business, but that is easier said than done, especially for companies that engage in international trade and transactions, which are increasingly fraught with complexity. To overcome this, finance leaders must recognise and address the individual barriers that obstruct effective spend management.
Spend controls
Without robust spend controls, organisations risk overspending, misusing funds and budgetary issues, which ultimately impact wider business operations. These risks can jeopardise the financial health, operational efficiency and strategic direction of a company. A concerning 98% of UK finance leaders acknowledge that inadequate spend controls have adversely affected their operations.
Equally, 32% of companies are overwhelmed by the number of software tools at their disposal. However, finance leaders can regain control of spend management by creating unified spend management systems. By consolidating these tasks into a unified platform, companies can streamline processes into one seamless system, cutting cuts on manual tasks and boosting efficiency and accuracy.
Visibility over spend
Visibility is essential for informed decision-making, yet UK businesses continue to struggle with fragmented, disconnected tools that cloud financial clarity. Alarmingly, 97% of businesses reported a lack of real-time visibility into their spending patterns, which can lead to operational blind spots and an inability to detect overspending, ensure compliance and forecast cash flow.
To increase real-time visibility, companies should adopt platforms with built-in automation and scalability. Similar to spend controls, this requires having unified spend management systems.
Automation
While automation has been a hot topic in recent years, with many advocating for rapid adoption to stay competitive, a significant number of UK businesses are still heavily reliant on manual processes. In fact, 96% report feeling the impact of insufficient automation, with a third stating it significantly hinders their spend management capabilities.
Leaders must now pivot towards automating spend management processes. This shift can save time, effort and help finance teams concentrate on strategic initiatives rather than mundane tasks.
While getting to grips with spend management might seem overwhelming, especially where businesses must start from the beginning, there is a clear path to overcoming spend-related challenges: addressing spend control and visibility head-on and leveraging automation. By implementing unified systems that offer robust controls, visibility and automation, finance leaders can help steer their organisations towards being better prepared for the future and in the decision-making process.
