Data and research from Soldo, Europe’s leading pay and spend automation platform, has shone a light on some stark facts. Over 72% of British finance directors say that their teams are “unprepared to cope in a complete or partial virtual working environment”.
Soldo has observed a huge shift in the spending habits of UK businesses, with a 125 percent increase in expenditure on e-commerce, digital services and online advertising. Understandably, expenditure has shifted from traditional expenses such as travel and travel and entertainment.
Businesses in the UK increased their spending by 65% in Q3, compared to Q2. This includes a 28% increase in September compared to August. In the rest of Europe, business spend increased by an impressive 78% from Q2, and spend in September increased by 23% compared to the previous month.
This shift in spending, coupled with the failure to adapt to digital workflows means that over 58% of UK businesses are unsure of their current level of working capital.1 While the pandemic has meant that the strategic value of the finance focus is emerging from the shadows, 64% of finance professionals say that the unnecessary stress of day to day tasks such as reconciliations prevents a true focus on strategic matters.
Indeed, reconciliations aren’t trivial matters, with over half of finance directors (54%) saying that their working capital is so low that lost VAT receipts “threaten business stability”.2 These figures are early results from research that Soldo has specially commissioned to explore how a lack of visibility and control of business spending throughout the pandemic has created financial chaos within businesses across Europe. The full report will be launched in early 2021.
Speaking about the initial findings, Soldo’s Founder and CEO Carlo Gualandri said:
“Soldo’s research shows that it has never mattered more to businesses looking for a brighter way to manage their spending. Finance teams need to find new ways of working that are better suited to the changing economic landscape. They need greater clarity, visibility and control of their finances to be able to pivot quickly to thrive (or survive).
“Colleagues are increasingly disparate and have to accommodate more flexible ways of working, businesses need to provide the tools and services employees need to do their jobs. We want to help businesses create efficiency and help teams to delegate the responsibility for spending to anyone through our pay and spend automation platform.”
Soldo aims to help over 24m+ businesses in Europe take control of their spending and optimise financial processes, a real necessity in the current economic climate. Fully regulated and authorised across the EEA through e-money licences in both the UK and Ireland, Soldo is thoroughly prepared to continue the expansion of its services in the event of any outcome of trade deal negotiations between the UK and the EU.
The news comes as Soldo launches a new brand identity, underlining its mission to be the brighter way to manage business spending. To find out more visit www.soldo.com