Over half of organisations cut expenses in light of rising government costs
Over half (52%) of organisations are cutting expenses in light of rising government costs. That’s according to a survey by AccountsIQ, a provider of advanced financial management software, and ExpenseIn, who joined the AccountsIQ Group earlier this year.
The survey, which gathered insights from 125 CFOs and senior finance leaders across the UK, highlights how businesses are adapting and reacting to growing financial pressures. The survey found that a quarter (25%) have already put new restrictions on expenses budgets as a result of rising costs, with 52% planning to. Seventeen percent say they ‘might’ introduce restrictions in the near future, with only 5% not planning to reduce expenses. These cuts align with rising tax costs coming into play from April 6th, including National Insurance increases, which are adding further pressure to UK businesses.
The survey also found that the two areas of finance operations most under scrutiny are payroll (46%) followed by expenses (24%). This is pushing businesses to reassess staffing levels and operational efficiencies at a time when finance leaders are already seeking ways to accomplish more with less.
Darren Cran, CEO of AccountsIQ, commented: “These figures demonstrate how finance teams are being asked to navigate an increasingly complex environment, with rising costs and ever-changing regulations always on the horizon. That said, this doesn’t have to be all doom and gloom. As well as these challenges, we are also in an age where technology and business intelligence is as exciting and cutting edge as it ever has been.
“The ambitious businesses we work with every day are the backbone of the economy, and there is now a real opportunity for these organisations, and in particular their finance teams, to leverage these tools, prioritising efficiency and automation to stay ahead.”
Businesses are also facing ongoing challenges when it comes to managing expenses efficiently in the current economic climate. Top challenges outlined by the respondents are compliance with changing regulations (40%) followed by manual processes (23%), underscoring the need for automation and streamlined financial management.
Richard Jones, MD of ExpenseIn, part of the AccountsIQ Group, added: “With employee expense policies tightening, businesses need better visibility and control over spending. Simplifying expense management through automation can help finance teams ensure compliance while reducing the administrative burden on employees.”
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