GUILDFORD, England, April 8 /PRNewswire/ -- The recent news that domestic saving within the UK has grown by 300% in the last quarter demonstrates the power of controlling discretionary spend, and the need for commitment accounting in business. Neil Robertson, CEO at Compleat Software http://www.compleatsoftware.com says, As individuals become increasingly concerned about the security of their jobs, a huge proportion have opted to become far more discerning in what they buy, what they are prepared to spend on it and what they will simply defer. The result is a significant saving within their household. These same individuals make up the workforce of our businesses and all companies should take a leaf out of their book and consider the same approach to their corporate spend, through commitment accounting.
Neil Robertson adds, Fourteen years of a growth market and access to easy credit has resulted in almost every company becoming lax in their purchasing habits http://tinyurl.com/czlj7t and the allocation of budgets set aside to support it. This has resulted in businesses spending between 10% and 20% of their entire budget either ineffectively or unnecessarily. The challenge is what to do about it, and controlling discretionary spend through commitment accounting is the answer.
Neil Robertson continues, What every financial director wants is for the budget holders within the business to become exceptionally diligent in what they purchase, the price they pay and the terms they achieve - they are starting to think about controlling discretionary spend - but most know that the majority of spend takes place because the budget is available and habit results in purchasing from where it is most convenient. http://tinyurl.com/czrvsm
Neil Robertson points out that the introduction of a complete spend control solution (automation of the purchase-to-pay e-procurement cycle to enable commitment accounting) offers the ability for organisations to ensure budget holders become as diligent with corporate funds as they are with their own money.
Neil Robertson continues, Complete spend control offers many commercial benefits. The introduction of commitment accounting on purchase order generation enables the recentralisation of budget management into finance and removes all over-budget spend http://tinyurl.com/cocask It also facilitates the instant reduction of the budget available to each budget holder, controlling discretionary spend whilst leaving the door open for over-budget spend on an item-by-item basis by the financial director/board. The removal of a percentage of available budget takes a matter of moments and has an instant impact on every request to purchase within the system.
With commitment accounting, every budget holder knows exactly where they are, what they have spent, what is available and what is in progress going through the system, instantly and on every transaction. Furthermore, both suppliers and the products available to purchase can be locked down and controlled, delivering more savings through better buying or appropriately priced goods and services - potentially on better terms.
Neil Robertson adds, Commitment accounting also provides 100% accurate cashflow forecasting reflecting every commitment made (at any moment in time) and removes the current poor discipline of accruing up to 40% of all monthly costs to budget in the accounts, simply because purchase invoices cannot be approved in time. The production of month end accounts can take place in days after the month end, yet be far more complete and accurate than the current offering.
Neil Robertson concludes, If a company could make a 10% saving on all budgets across the organisation, thus controlling discretionary spend, and remove all over-budget spending, just imagine the effect on their cash position and the profit and loss.
About Compleat Software Limited
Compleat Software Limited (formerly Vectra IT) is a provider of e-procurement and expense solutions for the mid-large marketplace. Committed to product and client satisfaction it strives to be at the forefront of technologies in order to provide best-of-breed software solutions.
About Compleat Procurement
Compleat from Compleat Software Limited is a Microsoft web-based e-procurement and expense solution that tightly integrates with most mid-ware accounting solutions. Providing your business with immediate cost-control, Compleat controls all aspects of your companies procurement cycle. With the most advanced, customisable workflow solution and real-time financial integration Compleat provides a winning procurement framework.
For further information, please contact: Clare Granville/Krista Cundy The itpr Partnership t. +44(0)1932-578-800 http://www.itpr.co.uk
For further information, please contact:, Clare Granville/Krista Cundy, The itpr Partnership, t. +44(0)1932-578-800