The Biggest Misperception about Spend Management
December 30, 2020
VIDEO –Think your organization’s spending is under tight control?
If monitoring budget-to-actual reports on a weekly or monthly basis is your organization’s best line of defense against budget overruns, then things may not be as well managed as you might think.
The big problem with budget-to-actual reports is that they don’t provide organizations with visibility or control over purchases in the procurement pipeline – pre-encumbrance or pre-committed expenses. Without a way to automatically check budget availability prior to vendor commitment, even well-intentioned organizations will perpetually be on their heels reacting to budget overruns.
Few enterprise resource planning (ERP) applications offer out-of-the-box capabilities for checking budget availability automatically. And organizations cannot count on budget owners to scrutinize every potential purchase. Some busy managers approve purchases without ever checking the budget.
What organizations need are automated budgetary control solutions that tightly integrate with their ERP and provide control and visibility over budget performance, from the point of the requisition.
Organizations want to tightly manage their spending in these tough economic times.
Automated budgetary control solutions help organizations migrate their spend management from a reactive reporting model to a proactive-making process where spend is tightly controlled.
Listen to our latest edition of PyanGo’s Budget Bites and hear our experts share the biggest misperceptions about automated budgetary control solutions.
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