How to Gain Strategic Insights from Company Spend Data

Best practices to improve financial decision-making As the uncertainty amidst the pandemic and economic disruption continues into 2021, companies need to use every tool at their disposal to support financial decision-making. Spend visibility in a company is extremely valuable for enabling data-driven decisions, but many companies struggle to manage spend information and maintain data accuracy. Best-in-class companies are driving productivity and even profitability in the current economy by connecting disparate sources of data for better spend management insights. An Aberdeen study of 606 companies from around the globe shows that best-in-class performers are managing 74% of company spend using invoice and expense management software – with most having integrated these systems with back-end ERP and other finance and accounting tools. In addition to managing company spend and improving budget forecasting, these companies are 31% more likely to be using that data to track and manage budgets – helping to redirect money to top business priorities. The result? In the past two years, best-in-class companies reported improvements of more than 26.1% in productivity and 24.3% in profitability – compared to -2.4% and -1.7% for others. Future-proofing a business is essential in today’s economy In 2021, the future regarding the pandemic and economy will remain unknown. Thus, companies must prepare themselves to scale their operations accordingly and focus on what they can control. As competition increases, it will be those companies that leverage business spending data to manage cash flow, track/manage budget, and audit for compliance that will effectively set themselves up for success. Read the full report to find out more about how digital spend management has helped top companies thrive and Aberdeen recommendations for comprehensively managing company spend established by best-in-class companies to achieve superior results.