Even the best laid plans can go awry – that’s where maverick spend control comes in. Whilst organisations spend large amounts of time budgeting and planning, minor errors in communication can ultimately cause stakeholders to overspend. This therefore not only has a large financial impact on an organisation, but also involves a more human cost in terms of admin time.
Using Sysynkt spend control, as well as well-chosen business intelligence solutions, can reduce the chance of maverick spending occurring within your organisation.
BDI is running a series of free webinars in August and September to demonstrate specific features of Sysynkt in more detail. Join BDI for an exploration into how Sysynkt’s Purchase Management functionality can support your organisation in taking back control over maverick spending – tickets available now via Eventbrite.
Table of Contents
What does 'maverick spend' mean?
The term maverick spend, also known as rogue and tail spend, refers to expenditure that does not abide by predetermined parameters set by company procedure. This takes several forms, the most common of which include:
Why is maverick spending a bad thing?
Not only can maverick spending cause direct issues through overstepping budgets, but there is a high risk of potential resource wasting. This includes time and efforts as well as financial resources.
Depending on the severity of the situation, there are often correlating costs in terms of admin and time wastage. Even seemingly insignificant and irregular instances of maverick spending can seriously impact efficiency and restrict potential for growth. This is especially true if cases go unchecked and continue to occur over extended periods of time.
What causes maverick spending?
There are plenty of potential reasons for maverick spending, but some of the most common causes include:
Steps to avoid/control maverick spending
Maverick spend controls involve adapting procedures to reduce the likelihood and frequency of maverick spending occurring. This often involves implementing better management.
A sincere and restrictive procurement procedure is the most crucial and impactful action against maverick spending. It is equally important to fully educate all stakeholders in this process, ensuring no chance of misunderstanding. After all, misunderstanding is the most common source of maverick spending.
In fact, a spender misunderstanding company spending policies is the most common excuse for non-compliance.
Implementing an automated, digitised procurement system is one of the most effective ways to end maverick spending. Staff can electronically submit a claim or request, which then passes through either an automated or manual approval stage. This method is particularly efficient, as it removes the human labour component.
What tools are available?
There are a variety of tools designed to streamline and troubleshoot the procurement process. Sysynkt, for example, is an innovative new cloud-based XFMS designed to supercharge SunSystems. With a highly customisable and approachable user interface, Sysynkt was designed with maverick spend control in mind. As a result, Sysynkt offers efficient expense management.
Introduce Sun to the Cloud today, and take back control over your organisation’s spending.
Join BDI for our free webinar series and learn more about how Sysynkt can support your organisation. Sold on an SaaS basis with unlimited user licences, Sysynkt removes the traditional financial barrier that prevents organisations from accessing comprehensive FMS solutions. With Sysynkt, all of your team members can access the modules they require whilst your organisation only pays for the transactions you need. Introduce effective and impactful budgeting systems to your organisation today, thanks to Sysynkt.
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