The impact of COVID-19 on expense management
Business and Finance have faced unprecedented challenges during this pandemic, which is still lurking at large. In such situations, technology expense management for such organizations has also got imbalanced and taken a downturn. This has forced businesses to reorganize and re-evaluate their processes as well as make drastic changes to their strategies, in order to have a positive impact, going forward.
According to an April study on SMBs, it was found that 68.9% of them felt that the pandemic has affected them negatively.
To effectively handle TEM services, get satisfactory results, and reduce costs, we have gathered some of the fruitful procedures to follow:
1. Maximize the flexibility of the technology
Technology Expense management solutions are useful when you are in the dilemma about expenditures and restricting spend during this crisis. With the TEM services, you can focus on high-value work and save time and resources for labor-intensive tasks.
The various advantages included are:
- It provides a seamless and automated workflow and gets the work done like clockwork.
- It provides a bird’s-eye view of real-time tasks going on and where the expense is more. Additionally, it will also reflect the savings that you have incurred to optimize spend. This will allow you to review and make an informed decision about the next step ahead.
- A centralized approach with compliant workflows to forecast and adjust plans to divert funds accordingly.
- It helps to save time and strategize, instead of spending it on excel sheets full of data.
- TEM service providers can improve supplier and customer relationships with updated negotiation terms.
2. A holistic approach to expense management
The present COVID situation would continue to affect business decisions for organizations. The calculation about the driving factors for the costs, how they influence the overall cost scenario, and how they stay aligned to the demands needs to be done. Once the complete analysis of the spending and saving is done, the next step should be to focus on safer investment options.
According to McKinsey, as much as 30% of IT cost savings were reinvested into business performance.
A flexible and focused governance process has to be established, wherein you can forecast easily and update costs whenever necessary. Technology Expense
management plays an important role in assisting in this process. Following these steps after discussion with your team will positively impact business resilience.
3. Stay ready for uncertainties
Selecting TEM services for scaling your business is a great step towards increasing the organization’s productivity along with remote work and other support processes. But, sometimes everything doesn’t go as expected. During such situations, taking a step back and relaxing on the efforts is feasible.
After witnessing the unforeseen changes that COVID has caused, being mentally prepared for the least comfortable situation and best to occur should be the attitude one should be working with.
Thus, with the current situation overlooking businesses, some reinventing changes need to take place, which is the need of the hour. Sometimes, organizations may not have particular resources for pursuing the necessary requirements and hence, require support from external sources. Inspiredge IT Solutions is a Technology Expense Management Solutions provider and we fund, track, and manage all your expenses and support bottom-line growth.
Inspiredge – A Unified TEM Solutions Provider for your Business