The vast majority of UK finance leaders (95 percent) struggle to manage their global spending due to disconnected management tools and manual processes, according to a new report released by Airwallex, the leading global payments and financial platform for modern businesses.
The Airwallex Spend Management Report surveyed 500 senior finance leaders at companies headquartered in the United Kingdom between July and August 2024, outlining the most pressing challenges and issues in business spend and expense management.
As the confidence of UK business owners in the current economic climate wanes, firms that are instead focusing on fuelling growth beyond their domestic markets are facing challenges when managing their global spend and expenses. This comes as no surprise, with 90 percent of companies saying their current systems are inefficient and unreliable, which creates bottlenecks and more risk of error.
While managing spend remains a top priority for UK finance teams, 68 percent of respondents reported using different tools and processes to manage spend across regions. Furthermore, up to 45 percent admit to relying on manual tools, such as spreadsheets, to manage corporate expenses, while 57 percent still use paper forms.
Notably, the patchwork of disconnected tools and manual processes slows down the global growth of UK businesses. It also impacts relationships with suppliers and employees. In the context of suppliers, 41 percent of companies reported delays in invoice and bill payments, and another 25 percent claim these late payments have strained supplier relationships, hindering negotiations for better terms. When it comes to employees, an alarming 69 percent of companies report slow and inefficient employee reimbursement processes.
Immy Spence, Head of Sales, SME & Growth, EMEA at Airwallex, said that the problems whittle down to legacy systems that are unable to keep up with an increasingly globalised workforce and business.
“At a time when UK businesses are seeking global growth opportunities more than ever, they simply cannot afford to be hamstrung by entirely avoidable inefficiencies. Archaic tools and processes may seem familiar and reassuring, but spreadsheets and siloed tools can quickly limit them, especially for those already operating across borders.
“Finance leaders looking to set their business up for success must look at unifying spend management into one platform – removing the friction, errors and a lack of financial visibility that comes from multiple systems.”
Airwallex Spend, a product suite which includes Corporate Cards, Expense Management and Bill Pay applications, is designed to reduce the time and number of tools businesses need to manage their finances with its all-in-one global platform, AI-powered automations and fast and efficient infrastructure to pay suppliers built-in.
Other key findings from the Airwallex Spend Management Report include:
- 68 percent of respondents lack confidence in the accuracy of their financial data
- 47 percent lack confidence in their financial reporting accuracy across regions, creating problems for conducting business across borders
- 97 percent of businesses report a lack of real-time visibility into their spending patterns due to disconnected tools that obscure a clear view of their finances
- 96 percent of businesses lack modern automation in their spend management processes, with 33 percent saying that it has a significant or highly significant impact on their businesses due to wasted time on repetitive tasks like manual data entry and reconciliation
Download the Airwallex Spend Management Report here. To find out more about Airwallex Spend, visit here.