June 2009:
Expense mismanagement costs UK businesses millions annually
British companies are in desperate need of an expense management overhaul according to a new report from expense review and business management specialist F2X, which has revealed that UK businesses are suffering expenses 40 per cent higher than they should.
According to the consultancy, it’s not just the politicians taking liberties with their expenses and companies urgently need to review their operational management to stem the flow of millions of pounds thrown away on needless spending.
Over a five year period, F2X claims to have saved companies over £50m using expense reviews and processes that are transparent, auditable with a delegated authority and, where possible, automated.
Suggested measures indicate that expenses should be process driven with tight controls demonstrating to staff where each spend adds value to the business and where it is a drain on the bottom line. New governance processes should be delivered to staff with checks in place to ensure ownership and sign-off policies.
Regular supplier contract reviews also aid in keeping costs to a minimum and are particularly effective in the high spend areas of travel, accommodation and technology, especially mobile phones, the report concludes.
F2X asserts that putting these cost measuring systems in place is neither costly nor complicated, and underlines this with its established risk/reward model that means its fee comes solely from savings made by the client.