Legacy Systems hamper 95% of UK Finance leaders’ spend management #UKFinance

By Gloria Methri

• New findings reveal 95 percent of British finance leaders struggle with a lack of robust spend control
• In the current economic climate, businesses maintain ambitions for global trade, but legacy systems hold back finance teams for spend and expenses
• Over half (57 percent) admit they still manage corporate expenses manually, relying on paper forms

The vast majority of UK finance leaders (95 percent) struggle to manage their global spending, due to disconnected management tools and manual processes, according to a new report released by Airwallex.

The report, which surveyed 500 senior finance professionals from UK-headquartered firms between July and August 2024, reveals that most finance teams are bogged down by legacy systems that hinder efficient expense management. Notably, 68 percent of respondents reported using different tools and processes to manage spend across regions. Furthermore, up to 45 percent admit to relying on manual tools, such as spreadsheets, to manage corporate expenses, while 57 percent still use paper forms.

As UK businesses eye expansion beyond domestic markets amid economic uncertainties, the survey highlights that 90 percent of companies consider their current systems inefficient and unreliable. This inefficiency creates bottlenecks and increases the risk of errors, stalling growth and damaging relationships with both suppliers and employees.

“At a time when UK businesses are seeking global growth opportunities more than ever, they simply cannot afford to be hamstrung by entirely avoidable inefficiencies,” said Immy Spence, Head of Sales, SME & Growth, EMEA at Airwallex. “Archaic tools may seem familiar, but they can quickly limit organizations, especially those operating across borders.”

Notably, the patchwork of disconnected tools and manual processes slows down the global growth of UK businesses. It also impacts relationships with suppliers and employees. In the context of suppliers, 41 percent of companies reported delays in invoice and bill payments, and another 25 percent claim these late payments have strained supplier relationships, hindering negotiations for better terms. When it comes to employees, an alarming 69 percent of companies report slow and inefficient employee reimbursement processes.

Other key findings from the report include:

• 68 percent of finance leaders lack confidence in the accuracy of their financial data.
• 47 percent are unsure about the reliability of their financial reporting across regions, complicating cross-border business operations.
• A staggering 97 percent report a lack of real-time visibility into their spending patterns due to disconnected tools.
• 96 percent lack modern automation in their spend management processes, with 33 percent stating that this has a significant impact on business efficiency due to time wasted on repetitive tasks.

As firms grapple with these challenges, the need for modern, unified spend management solutions has never been more clear. Airwallex’s Spend suite, which includes Corporate Cards, Expense Management, and Bill Pay applications, aims to streamline financial operations, reduce reliance on multiple tools, and enhance visibility into spending patterns.

In a rapidly globalised economy, finance leaders are urged to rethink their strategies. By adopting integrated, automated solutions, they can eliminate inefficiencies and position their businesses for success in the competitive landscape ahead.