Business Spending and Budget Statistics for 2021
Finance and budget owners agree - there's a better way to manage your spend.
Every growing business struggles with budgets.
Finance doesn't have time to update budget-to-actuals more than once a month. But your budget owners need more frequent updates to make good buying decisions.
We already knew this was a problem - but we were amazed at how big a problem it was. See below for for some eye-opening insights about the budgeting process. Where does your company fit in?
Budget owners are going over budgets they don't even have.
- 65% of budget managers don't have a budget until after the budget period starts
- 59% of budget managers started spending before their budget is approved
- 57% of budget managers went over budget in the last period
- 50% of budget owners went over budget by 40% or more
- 51% of budget managers went over budget before they even had their budget
- 8 in 10 budget owners agreed that spend management is too challenging
- 94% of budget owners track their spend in a separate system than finance
- 28% of budget managers reported their employees have access to physical or virtual corporate cards
Finance doesn't have the resources to keep up.
- 7 in 10 financial managers believe their budget approval process takes too long
- 67% of finance teams worry that delayed approvals prevent budget owners from staying on budget.
- 61% of financial professionals felt they did not have adequate visibility into departmental spend
- 3 in 4 finance pros believe corporate cards simplify expense management
- 62% of financial teams report corporate cards are shared by multiple people at their company
- 75% of financial managers believe shared corporate cards makes expense management harder
- 75% of finance directors believe they spend too much time on administrative tasks
This strains the relationships between finance and everyone else.
- 53% of all spend is disputed by either finance or startup budget owners
- 69% of finance teams feel like they are viewed as "bad cops" by budget owners
- 52% of growth startup leaders believe the relationship between finance and budget owners is broken
- 82% of senior leaders agree that real-time visibility into spend would improve the relationship between finance and other departments
- 80% of growing businesses believe real-time visibility into spend would help the company make better financial decisions