Expense management is an area of concern for all companies, regardless of industry. But there are certain industries where a more refined approach to business intelligence reporting is required. High technology is one of these industries. Here are three high-tech expense management facts company leaders should know about.
Fact #1: The high-tech workforce is young, digital, dispersed, and in demand
According to PayScale, the median age of workers at many high-tech companies is less than 35. These employees are accustomed to, and expect access to, cloud-based solutions for workflow management. High-tech formations are also becoming increasingly geographically dispersed, which only fuels the need for cloud-based solutions that can sync with existing apps and back-office systems.
Currently, the high-tech industry has one of the largest talent deficits across all industries. Those tasked with recruiting employees while offering inadequate or antiquated workflow management solutions are doing so with one hand tied behind their back. If your company has some catching up to do, there’s good news. According to KPMG’s 2013 Technology Industry Outlook Survey, more than 70% of high-tech firms are finding little-to-no difficulty integrating cloud applications into their business strategy and operations.
Fact #2: High-tech companies are more susceptible to cash flow variances
High-tech companies often deal with long, uncertain lead times between the funding, development and sales stages of each new initiative. Adding to this complexity are the reporting requirements of specific investors and government agencies.
Cloud-based, automated expense management allows high-tech leaders to:
- Ensure expenses are aligned with activities that drive revenue
- Gain accurate, real-time insights into spend
- Quickly realize when spending patterns need to be adjusted
- Negotiate more favorable terms with vendors and partners
- Better control spend by implementing a solution that polices the policy
Fact #3: Successful high-tech companies must scale quickly
According to research from the Kaufman Foundation, “Young firms experience an ‘up-or-out’ dynamic, where they tend to either fail or grow rapidly in the early years. The job-creating strength of surviving young firms, while strong for young businesses across the private sector as a whole, is especially distinct for high-tech start-ups: the net job creation of these surviving young firms is twice as robust.”
For high-tech companies, quick growth means rapid onboarding and additional resource management requirements. Companies using a manual expense management solution will need to counter this growth by adding additional administrative overhead. Those using cloud-based solutions, on the other hand, can maintain efficiency by quickly and easily onboarding resources without adding overhead.
Learn how to better manage expenses at your high-tech company. Check out Why High-Tech Companies Need High-Tech Expense Management.