Spanish companies, dissatisfied with their personnel expenditure management processes
The past year has exposed companies’ digital gaps in many business aspects. The lack of well-defined tools or procedures made business management difficult, in a context where teams were more dispersed than ever. This new reality has served as a turning point for many Spanish companies who, after an exercise in self-reflection, are preparing to face the next step in a more profitable, efficient and digital way.
According to data from Pleo, a fintech start-up created to simplify the management of business expenses, employee expense management is precisely one of the least modernized areas: only 30% of Spanish companies have digital procedures, It doesn’t does not imply that they are well structured and defined.
The study, in which Spanish CFOs and CFOs participated, highlights that 77% will change their employee expense management processes, in search of more agile solutions adapted to the new reality of work. In other European countries, such as the United Kingdom, this percentage is reduced to 33%. However, in Spanish companies, expense management affects the profitability of the companies: for 34%, it is an inefficient, tedious process or a waste of time. For a company with 1000 employees, manual management involves a cost of around 19 € per report and, moreover, 1 in 5 reports contains errors.
Benefits of digitized expense management
The implementation of these systems can bring great benefits, both for the business administration and for the daily life of the employees.
On the commercial side, greater control and transparency are obtained on all movements, which makes it possible to adjust forecasts and costs for each project or service as needed.
At the same time, the work of finance teams and team leaders is streamlined, eliminating the need to categorize and approve each employee’s expenses individually. In this way, these professionals are encouraged to devote their working hours to more strategic activities that contribute to business development.
On the other hand, for the rest of the employees, digital solutions eliminate the obligation to fill out expense sheets, favoring faster and simpler reporting. In addition, they prevent workers from undertaking job purchases with personal money.
The “new normal” has brought big changes to the workplace. Companies, in particular small and medium-sized enterprises, are betting more and more on technological solutions that allow them to accelerate their digital transformation, to improve the various areas of the company and to put in place more competitive procedures for next year.
“It is very interesting to see how more and more companies are realizing the importance of digitization in day to day tasks, like managing employee expenses. These are processes which traditionally have not received enough attention; however, the reality is that its modernization saves considerable time and resources ”, explains Aiyana Moorhead, Country Manager for Spain at Pleo.
The startup, which landed in Spain just six months ago, provides businesses with a smart expense management solution that helps achieve more efficient, transparent processes that are in step with the new reality.