The importance of risk and compliance through a national lockdown

By Rob Harrison, MD of SAP Concur for the UK and Ireland.

Businesses are experiencing an extremely different and uncertain economic environment. Navigating the numerous obstacles and determining the best way forward through recovery has been a challenge for businesses of all sizes. The constant need to pivot and change direction brings an added layer of complexity for those in charge of governance within organisations. What’s more, when you consider recent research that found that 84 percent of executives agree that the full impact of the COVID-19 outbreak may not be truly known for years to come, “business as usual” could be a long way off for many.

In a time of uncertainty now is the time for businesses to get back to basics with a complete view of cash flow. This will be critical to the survival of businesses during this difficult time, especially in light of Lockdown 2.0 still facing many businesses across the country. A slip, or interruption in payments, or unexpected costs are keenly felt at this time and can come with immediate consequences for payroll. Businesses need to turn to more reliable, immediate solutions that can monitor the balance sheet in the form of expense management systems, invoice payments and payment systems.

Risk and compliance are complex areas for any business to navigate. But as budgets are increasingly squeezed and business spend is put under greater scrutiny, organisations will need to know where every penny goes.

Start by safeguarding internal processes and audits

Assessing internal processes and spotting activities that are outside of company policy can be crucial to understanding where every penny goes. This includes non-compliant spend and duplicate or fraudulent invoices. Paper-based expense management processes can both drain employee time and give minimal visibility of expense details. Therefore, turning to efficient automated systems can improve employee compliance. The ability to see where employees may not be acting in line with company policy, gives businesses the opportunity to adjust and enforce rules. In addition, when employees are given tools that are easy-to-use and flexible – they’ll be more likely to comply.

Digital transformation as a direct solution

From an external standpoint, businesses need to ensure they adhere to HMRC regulations to prevent costly fines and damage to their reputations. Maintaining awareness of regulations can also help business leverage rules to keep cash within the business, such as VAT reclaims. Technology is having a significant impact on the world of compliance and many businesses are turning to automated management solutions to illuminate departments that have high volumes of expenses. More than 90 percent of executives surveyed agree that a scalable, automated T&E management solution is key to ensuring consistent application of policies and protocols across the business. It’s crucial that data-based decisions are made to guide businesses through uncertainty and to sustain the company in the long-term. Synchronising methods to track travel, expenses and invoices can boost process efficiency as well as open up precious employee time to be focused on more productive tasks.

Survival through a second national lockdown

As we continue to weather a second national lockdown businesses are focused on maintaining their recovery and surviving until the economy rebounds. Rapid digital transformation can allow companies to be aware of risk and maintain compliance across their fields of activity. Compliance relies on identifying errors quickly, putting a stop to them and reporting them to regulators without delay. The allowance for error is slim especially considering the damage it can do in terms of reputation. Technology and software that can patterns and correlations in data will help streamline processes and minimise human error. While investing in new technology may seem daunting during these times, it can help businesses recover and maintain stability through increased efficiency, agility, cost control, and compliance. Companies that have funded digital change correctly and invested in the right tools will be able to outcompete their rivals and emerge from this difficult period more dynamic than before.