Spend management isn’t simple. Trying to control spending is important, but there are some obstacles that can get in the way of making budgeting or spend initiative effectively. Frequently these obstacles prevent spend management from doing its job, and a company’s finances can suffer because of it. On the other hand, not implementing a budget can be just as dangerous.
Luckily, Divvy is here to help. Here are some common spend management problems and how to solve them.
1. You’re using old data
The most common spend management problem is using old data and expecting better results. Identifying useful expenses is difficult without real-time data. Traditional expense management works with spending information that’s at least a month old. This makes it hard to tell what your money is doing for you. You never know what the company is committed to paying for until a month after the fact, making it difficult to gauge the financial health of the business.
Wouldn’t it be nice to know what’s being spent when it’s spent?
Divvy can do just that (track expenses in real-time). With Divvy, every purchase is tracked at the point of purchase, so you know what’s been spent right when it happens. Let’s say an employee is using company cards when traveling for business. If she goes over budget or is making purchases that aren’t company approved, your finance team will know right away. If she has unexpected expenses, you can even increase her spend limit line on the fly
2. Tracking spending habits
If you’re still stuck using old data, how can you expect to track spending habits? Without help, you’ll spend a significant amount of time trying to make and track your budget, including lots of time spent trying to:
- Analyze spending habits
- Decide where you can cut spending
- Track and enforce new budgets
- Compile reports and analyze results
It’s a lot of work. Without insight into how you’re spending money, you have no idea what needs to be done to control it, and gaining that insight takes a lot of effort unless you have the right tools.
That’s why Divvy provides the resources critical for implementing spend management at your business. Combined with our system of analytics, you’ll have the insight you need to make critical financial decisions, and because all your data is real-time, you can make decisions that prevent shortfalls at the end of the month.
3. Cutting costs
Working with old data and being unable to track spending habits makes it impossible to know what costs can and should be cut. Cutting costs across the board isn’t as helpful as it sounds. Not every expense is something you can just get rid of. Some things you need just cost more than others and some expenses are justifiable and beneficial. Taking an ax to expenses indiscriminately won’t necessarily solve your spend management problems. That said, you likely can’t stay within your budget without cutting at least some costs.
Divvy helps in this area because you always have the newest spend data and the ability to track spending habits as they happen. With Divvy, you’ll have the proper insight into where and how effectively money is being used. Once you identify ineffective costs, you can make informed decisions about whether to cut an expense.
Divvy makes spend management more effective (and easier)
Divvy provides you with better visibility, increased control, and improved flexibility to utilize your finances in a way that will best benefit your business. Your foray into spend management doesn’t have to be haphazard, it can be informed and smart. Let us help you make your spend management and budgeting more effective and easy to manage. Divvy is free to use and free to try. Contact us for a demo today.