When times get tough, stay one step ahead by remembering your strategic objectives. Businesses should be prepared and modify their workflows based on evolving market conditions, but always keep business goals in mind.
Inflation, COVID, supply chains, and the changing job market affect how expensive a business trip (yes they’re back) or office supplies have become. With the current average inflation rising to 8.6% this past month, companies are rethinking their approach to operating expenses.
During times of economic instability, companies should focus on managing cash flows, tightening budgets, and keeping a close eye on spending. Market volatility, inflation, and economic uncertainty require more stringent financial management, transparency into cash flow, and stability where possible in the supply chain.
Having the right tools and workflows in place cannot be a passive exercise. One smart move is the addition of a corporate card program that enables businesses to stick to specific budgets, avoid credit debt, and manage their liquidity. Spending platforms, such as PEX, provide automated and efficient money management with full insight into employee spending.
Consider the following tips on how to manage your business through times of economic uncertainty:
- Optimize Employee Output: Focus on your team’s productivity. Managers motivate their workforce, boost morale and reduce potential stress by recognizing the contributions made by their employees. The more value your teams can deliver, the better off your business will be.
- Automate Processes: Automation is crucial to the growth and advancement of business, due to its ability to decrease operating costs, and increase performance and productivity. Spending Platforms like PEX automate your expense policy, essentially creating spend rules for approvals that prevent employees from overstepping their boundaries and creating unnecessary expenses. Integration with leading software platforms and receipt capture via mobile web significantly reduce bookkeeping and reconciliation times.
- Plan Ahead: An effective way to determine if your business is meeting objectives is through measuring results or forecasting. This will help make informed business decisions in case your business begins veering off course. Companies should build a financial forecast including both profit and loss expectations in order to know their priorities and limit unnecessary expenses. It would benefit these businesses to create a financial cushion in the event that economic conditions worsen. This could include budgeting and holding off on making non-essential purchases in order to save funds.
So, although a volatile business climate creates uncertainty, financial visibility, cash management, and automation create a more stable operating environment for Finance teams. PEX was purpose-built from the ground up to offer corporate card programs that empower Finance teams to gain control of company spend while reducing the effort required to manage it. Continue strengthening what works for you, and click here to learn more about how PEX can fit the needs of your business.