As we look towards the future, it’s clear that AI will become an indispensable tool for finance teams, transforming the roles and skill sets required for success.

While AI’s benefits for finance are significant, teams must also navigate risks and challenges. Here are some of the major risks that finance teams need to watch out for as they adopt AI technology.

Data Quality

One key risk of using AI in finance is data quality and governance. AI models are only as good as the data they’re trained on, so finance teams must ensure their data’s accuracy, consistency, and completeness. This requires robust data governance frameworks and master data management practices to ensure data is properly sourced, validated and maintained.

Data Validation

According to EY, interpretability and auditability are other critical challenges. Many AI models, particularly those based on deep learning, are “black boxes” — making it difficult to understand how they arrive at decisions. For finance teams, explaining and justifying AI-based decisions is essential for regulatory compliance and audits. This requires a focus on explainable AI techniques and rigorous documentation and testing of models.

Adaptation

Change management and upskilling are also significant hurdles. Implementing AI often requires significant changes to processes, roles, and ways of working. Finance staff may resist these changes or fear job losses, so extensive training and support is needed to build AI skills and adoption. CFOs and finance leaders must foster a culture of continuous learning and adaptability to ensure their teams can thrive in an AI-driven world.

Over-reliance

Finally, there are risks associated with overreliance on AI and lack of human oversight. While AI can provide powerful insights and automate tasks, it’s not infallible. Finance teams must maintain human control and judgment, particularly for high-stakes decisions. Regular monitoring and testing of AI models is critical to ensure they remain accurate and unbiased.

To learn more about the use cases, benefits and risks of incorporating AI technology into your organization’s finance function, download our guide AI in Finance: The Risks and Rewards.

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Investing in your team’s growth isn’t just about staying sharp; it unlocks their full potential, leading to increased efficiency, improved decision-making, and a strategic advantage for your organization. By implementing these strategies, you can cultivate a culture of continuous learning within your finance team. This will not only equip them with the latest skills but also foster collaboration and innovation.

Here are some ways you can do just that.

Develop Specialized Skills Within the Team

As your company grows and evolves, it’s important to continuously develop specialized skills within your finance team. This will ensure that your team has the expertise needed to support your organization’s changing needs and drive strategic initiatives.

Start by identifying areas where specialized expertise is required, such as:

• Lending
• Debt management
• Financial modeling
• Data analysis

Then, provide targeted training and resources to help team members build these skills. This can include:

• Workshops
• Online courses
• Mentorship programs

Encourage cross-training and knowledge sharing among team members to ensure a well-rounded understanding of the finance function. This will help individual team members grow and develop and create a more resilient and adaptable team overall.

Invest in Continuous Learning and Development

In addition to developing specialized skills, investing in continuous learning and development for your finance team as a whole is essential. This will help ensure that your team remains at the forefront of the industry and is well-equipped to support your organization’s long-term success.

Start by curating and promoting a library of educational resources, including:

• Industry publications
• Webinars
• Online courses

Encourage team members to set aside dedicated time each week to explore these resources and share key insights with their colleagues.

Encourage participation in industry events and conferences, as these provide valuable opportunities to network with peers, gain new insights, and bring fresh ideas back to the team. Consider setting aside a budget for team members to attend these events and share what they have learned with the broader group.

Establish a mentorship program, pairing experienced team members with newer ones, to facilitate knowledge transfer and professional growth. This can be a powerful way to build relationships and create a sense of community within your team.

Finally, demonstrate your commitment to learning and development by setting aside dedicated time and resources for these initiatives. This can include offering paid time off for professional development, tuition reimbursement for relevant courses and certifications, and recognizing team members who go above and beyond in their learning and growth.

Ready to Take Your Finance Team to the Next Level?

Want to dive deeper into the art of building a high-performing finance team? Download our free guide, “How to Build a High-Performing Finance Team: Tips for Global Enterprise Companies” — packed with actionable strategies for attracting, retaining, and empowering your financial dream team.

The post Investing in your team, investing in your future appeared first on Mesh.

The first step of making an investor pitch is researching potential investors to understand their goals and motivations. Their priorities will shape the focus and content of your presentation. Here are a few things investors are generally looking for — depending on the size of your company.

To learn more about creating a great presentation for potential investors, download our How to craft compelling investor presentations guide.

Early Stage Companies

When pitching angel investors and venture capital firms as an early-stage startup, recognize that they are seeking massive growth potential and are willing to accept higher risks for greater rewards.

Do your homework to understand individual investors’ sector interests, portfolio companies, and investing history. Make connections to other startups they have previously funded that achieved hockey stick growth. Demonstrate that you have a unique value proposition, proprietary technology, and the ability to dominate an untapped market and aggressively scale.

Growth Stage Companies

Later-stage VCs and corporate investors funding growing companies want to see concrete validation that your business model actually works. They expect to see that you are on track for hockey stick growth and have a clear path to profitability.

Research existing portfolio companies to find relevant comparisons. Benchmark your traction and financials against comparable deals to showcase metrics indicating future success. 

Emphasize your progress in expanding market share, entering new geographic territories, building operational scale, and setting up a future liquidity event.

Mature Companies

Private equity firms and lenders evaluating established companies want steady returns with limited risk. They look for seasoned management teams and stable cash flows able to produce results consistently across business cycles.

Study their acquisition history and previous deals to identify areas of strategic interest and return requirements for prospective debt and equity deals. Demonstrate the strength of your market leadership, management team, and historical financials. Prove you can deliver consistency even through market volatility.

To learn more about winning over investors, download How to craft compelling investor presentations.

The post What do investors look for in a business? appeared first on Mesh.

Here are just a few best practices featured in this guide:

• Focus on the most important metrics
• Connect the data to real-world scenarios
• Use engaging and effective visuals

Get more details on these and other tips and tricks to run efficient and effective budget meetings by downloading Data, Demonstrations and Discussions: A Comprehensive Guide to Productive Budget Meetings.

The post Data, Demonstrations and Discussions: A Comprehensive Guide to Productive Budget Meetings appeared first on Mesh.

In this blog post, we present our top 10 picks for corporate finance influencers who share their expertise on social media. These individuals have garnered a reputation for their experience and thought leadership, making them worth a follow for anyone interested in the world of finance. Let’s dive in and discover who they are!

Our Top 10 Picks for Corporate Finance Influencers to Follow: 

1. Secret CFO

SecretCFO, an enigmatic and influential figure in corporate finance, writes about the CFO role in a fresh and engaging way. He also has over a decade of experience as a CFO in large multinational corporations.

SecretCFO’s LinkedIn and blog feature a wide range of content on the CFO role, including summaries of financial concepts, the skills needed to lead financial teams, decision-making frameworks, and hot takes on financial topics.

2. Anders Liu-Lindberg

With over 265,000 followers on LinkedIn, Anders Liu-Lindberg is one of the biggest corporate finance influencers in the world. He is the co-founder of Business Partnering Institute, a consulting firm aimed at helping businesses in partnering and unlocking their full potential with the finance function.

His content is worth following as he posts valuable insights regarding CFOs, Finance, Accounting, and FP&A.

3. Kathy Svetina

Kathy Svetina is a unique and influential figure in the field of corporate finance. She is a fractional CFO who specializes in women-owned businesses, helping them make informed financial decisions and grow into sustainable companies.

Kathy also posts videos in her “Castle Series” where she shares her thoughts on corporate finance topics and tidbits.

4. Christian Frantz Hansen

Christian Frantz Hansen is a primary figure in the corporate finance landscape. He is also a co-founder of Business Partnering Institute, and is known for his expertise in financial strategy and empowering businesses to maximize their potential.

Christian often posts content covering finance functions, data visualization, and tips for CFOs.

5. Chris Ortega

Chris Ortega, also known as FreshCFO, is a corporate finance influencer and the CEO of Fresh FP&A, a firm that provides fractional CFO and advisory services to businesses looking to scale their finance operations. 

Chris is active on LinkedIn, where he shares educational finance content aimed at CFOs and FP&A professionals. Plus, he is also the host of our very own CFO Trends podcast, which features insights, perspectives, and tactics on evolving finance trends from finance experts.

6. Christian Wattig

Christian Wattiq is an experienced financial professional who has worked in FP&A leadership roles for the last 12 years. He is now a corporate trainer that teaches FP&A skills to finance teams. 

Wattiq’s posts are extremely valuable to FP&A professionals. He shares tips and strategies for excel, financial models, decision making, balance sheet KPIs, and more.

7. Aliyyah Abdullah

Aliyyah Abdullah is a CPA with extensive finance knowledge, gained over 15 years of experience in accounting and finance at small and medium-sized businesses. 

Aliyyah posts content centered on small and mid-sized entities, accounting, and forecasting.

8. Mayur Vyas

Mayur Vyas is a career CFO and a consultant/mentor for startups. Mayur has extensive experience in managing the financial growth of businesses, and uses his LinkedIn to share the knowledge he has gained over the years.

9. Asif Masani

With over 105,000 followers, Asif Masani is a prominent corporate finance influencer who helps finance professionals on their FP&A journeys. He has over 12 years of experience in financial planning, budgeting, forecasting, audit and tax.

Asif posts great content covering guides for FP&A professionals, KPI cheat sheets, budgeting guides, and more.

10. CJ Gustafson

CJ Gustafon is an experienced financial professional who has a broad skill set and experience in finance roles throughout his career. He has experience in working in finance on both the funding and funded sides of the table.

CJ often posts his personal observations and practical advice around financial metrics, life as a finance executive, and company performance.

The Future of Finance Is Bright

Clearly, these 10 influencers have a vast amount of knowledge and expertise in the field of corporate finance. Their valuable insights into financial strategy, FP&A skills, CFO responsibilities, and accounting practices are a valuable resource for current and future finance professionals looking to advance their careers. 

By following these influencers, you can stay up-to-date on the latest trends and information, and gain practical advice to succeed in the corporate finance landscape.

The post 10 Corporate Finance Influencers You Need to Know appeared first on Mesh.

We’ve created a glossary to break down some of the most common business travel terminology, from acronyms to key players and even some technical standards.

So, if you’ve ever wondered what the difference is between booking and ticketing or need a refresher on the different IATA codes (or what IATA even stands for…), you’re in the right place.

Booking Terms

Booking: Booking is a confirmation that the request has been received by the travel service provider, holding the seat on the plane or a room at a hotel. 

Booking does not actually confirm the flight or hotel has been allocated to you, and the inventory has been removed from visibility to other travelers or agents. 

Booking is generally referred to in three ways — Direct Booking, Online Booking, Offline Booking (see each entry for definitions).

Ticketing: When a booking for a travel service has been officially secured for the traveler and the inventory is no longer visible to other buyers, agencies, or services. 

Specific examples: 

• For airlines, ticketing means that the seat has been paid for and the airline has issued a unique “ticket number” for that passenger’s seat on that specific flight
• For hotels, it means that availability has been confirmed, removed from available inventory, and either secured with a credit card or fully paid for in advance.

Offline Booking: A form of “agent-assisted booking,” offline booking describes a process where an employee communicates travel requirements to a corporate travel agent who plans and books the trip. 

Communication is typically through a TMS (see TMS – Travel Management Software), but can also be done via email or phone. It is the TMC agent’s responsibility to put together the most efficient and cost effective itinerary that fits the employee’s requirements and preferences, as well as company travel policies.

Online Booking: A form of “agent-assisted booking”, online booking refers to when an employee uses a corporate OBT (online booking tool) to book, track, and modify a trip. The goal of an OBT is to provide simple, effective and hassle-free travel booking that’s compliant with company travel policies. 

The OBT then communicates via GDS integration, directly via the travel service provider via NDC (see NDC – New Distribution Capability) or via the company’s travel agent who submits the booking for ticketing. Ticket confirmations can be shared via the OBT, where they are typically stored as part of the trip itinerary, or directly from the travel service provider.

Direct Booking: Direct booking describes when a person or employee makes their own travel bookings directly, through either a consumer booking tool (like an OTA or aggregator) or with the travel service provider (e.g. Delta, Amtrak, Hilton). 

This is strongly discouraged at companies with managed travel programs. Direct booking is by definition not “agent-assisted booking.”

AAB (Agent-Assisted Booking): Agent-assisted booking. Primarily Offline booking, but can refer to offline or online booking performed through a TMC/agency.

Booking & Management Services Terms

TMC (Travel Management Company): Travel management company, such as American Express Business Travel. More detail here. A TMC is a travel agency which manages an organization’s corporate travel programs. 

TMCs may provide an end-user online booking tool, mobile application, and program management, as well as consulting teams, executive travel services, meeting and event support, reporting functionality, duty of care, and more.

TMS (Travel Management System/Software): Software that allows companies to manage all aspects of travel, from policy management to booking and expense reporting. Typically it includes an OBT, and is often also used by a corporate travel agent as the primary communication channel to travelers. 

Examples: SAP Concur, Atriis 

White-Glove Travel Agency: A white-glove travel service tailored to select individual VIPs. Adapts to whatever the client needs with extremely personalized service. 

OTA (Online Travel Agency): Digital system where travelers can access a range of travel services, including hotels, flights, car rentals, tours, activities etc. Users can directly book through OTAs. Travelocity was the first OTA. 

Examples: Travelocity, Booking.com, Priceline, etc. 

OBT (Online Booking Tool): An online booking tool (sometimes referred to as an OBT) is an internet-based system that allows you to book flights, rail, hotels and more. The goal of an OBT is to provide simple, effective and hassle-free travel booking that’s compliant with company travel policies. 

LCA (Low Cost Aggregator): Similar to GDS, but focused only on low cost carrier inventory. Low cost aggregators primarily provide inventory visibility, and may not facilitate booking. They may use another service, like an NDC or link out to the LCC directly. 

Managed Travel: A business travel program in which employees book travel within the guidelines of a strategic company travel policy designed to control spend and ensure travelers’ safety and security. 

Unmanaged Travel: An “open booking” business travel program in which employees independently manage their own travel arrangements without the structure and guidelines provided by a travel policy.

Inventory Suppliers & Aggregator Terms

CRS (Central Reservation System): A central reservation system is an automated reservation system that today is used primarily for hotel booking. Similar to a GDS, it allows inventory and pricing to be distributed to other systems, but is specifically designed to manage rooms and rates. 

GDS (Global Distribution System): A global distribution system is a digital reservation system that connects travel agencies to a wide range of travel service providers with access to real-time availability, price and offers of flight tickets, hotel rooms, rental cars, cruises, ferry reservations, trains and other services.

Megasearch Engine: See Travel Aggregator. 

Travel Aggregator: Travel aggregators are websites that consolidate the travel supply (e.g. flights) and prices from multiple sources all in one place (e.g. Kayak). Users can compare more options in one place, and then book based on their priorities (e.g. cost, departure times, airline, etc.).

Primarily focused on saving travelers money, aggregators make it easy for travelers to know that they are booking at the lowest price possible. You can’t book through the aggregator. They will forward you to the travel service provider (e.g. airline or hotel).

Examples: Kayak.com, RailEurope, CheapFlights.com 

NDC (New Distribution Capability): New Distribution Capability (NDC) refers to the ability to access and book inventory directly from airlines. For example, a prospect might ask, “What NDCs do you have?” 

Technically, “New Distribution Capabilities” is an IATA-managed technical standard that allows airlines to create and distribute inventory/offers directly to buyers via any distribution channel (B2B or B2C). 

CRS (Central Reservation System): A computer reservation system or a central reservation system (CRS) is a web-based software used by travel agencies and travel management companies to retrieve and conduct transactions related to air travel, hotels, car rental, or other activities.

Originally designed to be used by airlines, it was later extended to be used by travel agencies and Global Distribution Systems (GDS) to book and sell tickets for multiple airlines.

Important Terms and Acronyms

CNR (Corporate Negotiated Rate): When a company goes directly to a travel service provider (like Marriott or Southwest Airlines) and negotiates a discounted rate for use by their employees. The discount is often tied to volume (how many services a company will book with that provider is a year). 

If a company does not have full visibility across their whole spend, usually due to leakage (when employees book their own travel directly from vendors outside the corporate online booking tool), they are unable to negotiate the best rates possible. 

Leakage: Leakage is invisible travel spending that takes place outside of an approved channel. This “out-of-contract” spending typically does not show up in reporting provided by an organization’s travel management company (TMC). 

A lot of leakage in a managed travel program can lead to missed cost-savings opportunities (like CNRs) and weaken duty of care capabilities. 

Duty of Care: Duty of Care is an organization’s legal obligation to protect employees from harm. For instance, when employees travel for work, it’s critical that businesses take all reasonable measures to ensure that people remain safe on the road. This includes knowing where they are at all times.

PNR (Passenger Name Record): A passenger name record (PNR) is a record in the database of any digital reservation/booking system that contains the itinerary for a passenger or a group of passengers traveling together.

IATA and ATA have defined standards for interline messaging of PNR and other data through the “ATA/IATA Reservations Interline Message Procedures – Passenger” (AIRIMP). 

There is no general industry standard for the layout and content of a PNR. In practice, each CRS or hosting system has its own proprietary standards, although common industry needs, including the need to map PNR data easily to AIRIMP messages, has resulted in many general similarities in data content and format between all of the major systems. 

CDF (Customer Data Field): Customer data fields, used to collect specific company information such as an employee’s role and department. This information will pull into your travel data view.

Trade Organization Terms

A4A (Airlines for America): Airlines for America (A4A), formerly known as Air Transport Association of America (ATA), is an American trade association and lobbying group based in Washington, D.C. that represents major North American airlines since 1936. 

The A4A is frequently involved in US government decisions regarding the aviation industry including the creation of the Civil Aeronautics Board, establishment of the air traffic control system and airline deregulation. 

In its lobbying efforts, A4A publicly promotes air transport as safe and efficient, and it advocates for favorable regulations on taxation, competition, and environmental standards. 

ARC (Airlines Reporting Corporation): The Airlines Reporting Corporation is responsible for supervising payments from travel agencies to airlines, and the process of issuing tickets to consumers. They are also responsible for fining travel agencies when violations are made. 

ATA (Airlines for America): Air Transport Association of America (ATA), now known as Airlines for America (A4A). See A4A.

IATA (International Air Transport Association): The International Air Transport Association, a trade association for many of the world’s airlines.

• IATA defines the standards of air transportation. 
• IATA creates a fair competition among airline companies.
• IATA designates the cargo transportation procedures. 
• IATA defines the standards for terminal designs and its management 
• IATA takes up a role in the standardization process of the utilized equipment. 

IATAN (The International Airline Travel Agent Network): The International Airline Travel Agent Network, administers the IATAN card, the only widely accepted form of legitimate travel agent identification.

General Terms

Adoption Rate: The percentage of bookings made through a company-approved online booking system; a high adoption rate is key for capturing trip itinerary information and travel spend.

“Bleisure”: The practice of combining business travel and leisure travel in one trip. 

Land Arrangements: All non-flying reservations upon arrival such as car rental, hotel and tourist reservations.

Preferred Supplier: A company such as a hotel or airline that has a contract with an organization to extend a preferred rate or additional preferential conditions in exchange for a certain volume of business. 

IROP (Irregular Operations): Irregular operations refers to flight disruptions such as delays or cancellations due to weather, acts of God, equipment changes or rest for the crew.

IATA Designator Code: Those companies assigned an IATA Airline Designator Code are to use such designators for reservations, schedules, timetables, telecommunications, ticketing, cargo documentation, legal, tariffs and/or other commercial/traffic purposes. Requirements are explained in the IATA Designator Code Requirements document (pdf). 

IATA Location Code: The International Air Transport Association’s (IATA) Location Identifier is a unique 3-letter code (also commonly known as IATA code) used in aviation and also in logistics to identify an airport, (e.g. JFK, LAX, etc.). 

Airlines may request the assignment of a unique three-letter code to identify a location like an airport. Bus or ferry stations may be eligible for an IATA location identifier if these locations are involved in intermodal airline travel. 

Record Locator: The number assigned to a reservation in the airlines’ number. This number is unique and will never be assigned again.

Now that you’re up to date on travel business lingo, it’s time to equip your business with a travel management solution that meets your global needs, stops leakage, and provides full visibility into exactly where and how money is spent on corporate travel.

Mesh Travel provides online and offline booking, multi-entity and multi-travel agency support, duty of care and much more – all with fully integrated expense management and corporate cards. 

To learn more, schedule a demo.

The post Business Travel Glossary appeared first on Mesh.

Maverick spend is different from tail spend, which refers to unplanned non-strategic spending. Tail spend transactions are usually low in value, and might be defined based on a specific threshold.

The negative consequences of maverick spend are real and measurable. These costs can quickly escalate and affect cash flow, and may not be easy to identify. You can minimize the associated risks by following the steps below.

1. Identify Maverick Spenders by Conducting a Detailed Spend Analysis

If you want to reduce expenses that don’t support your company’s best interests, you have to know who the maverick spenders are. Using a spend manage system is the easiest way to do spend analysis, since it gives you a real-time picture of your company’s financial health without any manual work. This will show you where resources are going, who’s responsible, and the scope of the issue, so you can take the appropriate actions.

To identify maverick spenders, you’ll need effective spend classification and complete visibility. Your spend management platform should make analysis easy with reports that can either consolidate data for big-picture insights or drill down into details as needed.

2. Clearly Communicate Your Procurement Policy & Preferred Suppliers

The procurement policy, list of preferred suppliers, and any relevant contract terms should be openly shared with all staff members who have purchasing power. This makes procurement through preferred suppliers quick and easy.

When staff understand the company spending policy, they’re more likely to use resources properly and maximize value. Transparent policies and clearly outlined responsibilities and consequences will will go a long way toward reducing maverick spend.

3. Educate & Train Your Team Members

Education and training should be ongoing, so that staff members are always up to date on the latest policies. Include procurement education in the HR process and incentivize savings with company card or virtual card reward programs.

Regular training ensures that every team member has the information they need, as well as the opportunity to ask questions as they come up. If they’re well informed not only on company policies, but also on the reasoning behind them, they’ll be better equipped to make responsible spending decisions—which leads to less maverick spend.

4. Foster Collaborative Relationships With Shared Accountability

The most productive relationships have shared accountability at their core. Encourage cross-functional collaboration through virtual or in-person meetings and team-building sessions. This helps to clarify staff roles, establish shared goals, and increase transparency.

As opposed to dividing your team into silos, creating collaborative relationships fosters accountability and teamwork. Team members gain a better understanding of how their actions affect other people and business functions. Collaboration also increases oversight, which helps to identify maverick spend and find effective solutions.

5. Set Up Vendor Approvals & Block Unauthorized Charges

You can use spend controls to protect the company by setting up a system for vendor approvals and blocking unauthorized charges. Customizable features include spending limits, purchase blocks, streamlined approvals, and authorization requests. This also makes the approval process for requisitions and orders more efficient by defining approved vendors.

Fast and efficient approvals will encourage employees to shift toward using approved vendors, helping to reduce maverick spend. Placing blocks on unauthorized charges reinforces policies and holds staff accountable, while also protecting company cash flow.

6. Prevent Fraudulent Activities by Adopting Virtual Cards

Virtual cards provide temporary account numbers that protect users from data breaches and unsecured connections. They offer real-time purchasing data and integrate into your existing system. They also allow you to lock a card to a particular vendor, limit transactions over a certain threshold, type of purchase, and more.

This increases transparency and visibility throughout the month—not just at month end—and makes it easier to identify fraudulent or wasteful spending. Mesh Payments offers virtual cards that can help prevent fraud and abuse.

The Verdict

It’s essential to control maverick spend for a variety of reasons. Just to name a few, proper control prevents unnecessary losses, helps avoid breaches of contract, and mitigates reputational risk.

Mesh’s spend management software gives you the tools to identify, address, and reduce maverick spend—including virtual cards, real-time spend analysis, and customizable controls.

The post 6 Ways to Reduce Maverick Spend Among Your Employees appeared first on Mesh.

That said, effective control and management of variable costs can help increase your profit margin. Read on for practical tips to help you reduce variable costs in your business.

1. Scrutinize Your Products & Services Regularly

The number of products or services you sell is directly related to variable costs. As you produce or sell more products, variable costs increase. Scrutinizing your products and services will allow you to find cost-saving opportunities. You should also look at all other aspects of business operations to identify functions contributing to variable costs.

Analyze the profitability of your products and services so you can focus on the most profitable and eliminate the least. Maybe one of your products could be designed with fewer parts or features. On top of that, inefficient internal processes like production design can also add to variable costs.

2. Negotiate Better Terms With Your Suppliers

Negotiating better terms with your suppliers can help lower the cost of goods sold or manufactured for your business. Many suppliers will offer discounts for buying in bulk. Identify products that might allow you to negotiate for volume or early payment discounts. Start with the product that will provide the most significant cost savings.

Consider asking your utility providers for “budget billing,” where you pay the same amount each month to reduce the variability of your utility expenses. Look for ways to reduce distribution costs from your suppliers and to your customers, like packaging improvements and alternative distribution channels.

3. Manage Wage & Salary Costs

Salaries and wages are typically among the biggest expenses for any business and can vary from month to month. Labor costs fluctuate with the seasons, sales volume, and other factors. Effectively managing these costs can reduce variability over time, lower total labor costs, and increase efficiency.

Consider investing in training to help your employees become more efficient, so they can complete more work in less time and reduce overtime. Find ways to streamline your processes to boost productivity, like implementing automation. Outsourcing some positions to contractors can also lower your overall labor costs.

4. Continually Monitor Your Variable Expense Average

Averaging your variable costs can reveal patterns over time. You might notice that you pay roughly the same amount each year, with seasonal fluctuations occurring around the same time. Monitoring these averages will allow you to budget more effectively and prepare for months with higher expenses.

Calculate your average expenses for the last several years or, at the very least, the previous 12-month period. Use the highest average from the last few years to estimate the next year. Then compare the highest bill to the average, and make sure you have enough of a buffer to cover the difference.

5. Reconsider Your Budgeting Strategy

Reworking your budgeting process can help you prepare for the unknown. Incorporating new strategies can make your business more agile in response to volatility in variable expenses.

Use variable expense averages to build your budget. Establish a dedicated savings account to serve as a cushion for unexpected expenses. Securing a business line of credit can give you access to emergency funds as an extra layer of protection.

6. Invest in Advanced Business Technology

Advanced technology like automatic light switches, HR software, or an ERP system can lower your variable costs with minimal effort. These systems use AI, OCR, machine learning, and other tools to optimize your business processes and operations. Software can also analyze spending data and provide valuable insights.

Look for technology that optimizes your most volatile expenses, such as labor. For example, workforce management software anticipates your sales and schedules employees accordingly. Expense management software can track your spending, set limits on variable expenditures, and help you find opportunities for savings.

7. Use Virtual Payment Cards

Virtual payment cards are the most effective way to control variable costs. By using virtual cards, you can ensure that spending doesn’t go over budget.

A virtual payment card should allow you to set spending limits by category, card, vendor, and more. The best virtual cards also provide insights through a spend management dashboard. Keep in mind that you shouldn’t have to pay any transaction fees to use these cards.

Reducing Variable Costs Is Essential

Most business failures have to do with cash flow issues, and mismanaging variable costs can put your company at high risk. Controlling and actively seeking out opportunities to reduce variable costs is essential to ensure profitability, continuity, and long-term success.

FAQs

The post 7 Simple Ways for Businesses to Reduce Variable Costs appeared first on Mesh.

This software is designed to support compliance and risk analysis. It allows you to identify risks, but also to rate their impact and adapt to constantly changing circumstances. The top tools integrate various aspects of compliance and risk analysis and give you plenty of time to address issues in advance. Below, we’ll explore some of the best audit management tools on the market.

Criteria for Choosing Audit Management Tools

Here are some of the main considerations you should take into account when selecting new audit management software.

• Compatibility with IT infrastructure: This is the first thing you should look for when choosing a tool. Only consider those that work with your existing infrastructure.
• Ease of use: A user-friendly tool will support employee buy-in. If the system is too confusing or segmented, your staff won’t be able to use it effectively.
• Integration with other software systems: This is the simplest way to pool data across business functions.
• Automation capabilities: The best software tools eliminate the need for manual work and lower the risk of human error.
• Customization: The tool should offer access to features and reports relevant to your company or industry, and allow you to customize its functions.
• Scalability and flexibility: You’ll need to be able to embrace new procedures and developments. A system that leaves room for growth and adjustments will have a higher ROI over time.

1. AuditBoard

AuditBoard is a cloud-based, unified platform for audit, risk, ESG, and compliance management. Its “connected risk architecture” means it’s best suited for companies looking to improve their internal collaboration and manage their risk data from one source.

Features

• Automated workflows: A centralized platform means improved employee interaction and better time and resources management. By focusing on a “user-centric experience”, tasks are easily delegated, tracked, and completed.
• Reporting and analytics: Data is converted into easy-to-read charts and graphs that are color-coded by risk. Reports are available in real-time and give you a complete view of your company.
• Integrations: AuditBoard can integrate with 18 other cloud-based platforms, including AWS, Microsoft Office, Slack, Jira, GoogleDrive, and more.
• Additional native applications: AuditBoard offers extra management, risk, audit, and compliance products to improve your audit process further. This includes RiskOversight, CrossComply, SOXHUB, OpsAudit, ESG, and TPRM.

These features can help your company zero in on areas at risk for non-compliance and fraud before external audits. It also means such issues can be caught before they cause expensive problems, saving you both time and money.

Rating

AuditBoard gets consistently high marks for ease of use and customer support. Customers are impressed with its efficient and intuitive features. It currently has a rating of 4.6 out of 5 on Gartner, based on 286 reviews.

This software works well for companies of all sizes, but may not be budget-friendly for smaller businesses.

Pricing

AuditBoard doesn’t make its pricing plans publicly available. If you’re interested, you need to contact them for a customizable quote based on your company’s size and needs. Pricing plans are subscription based and there’s no free plan or version available. In comparison to other platforms, prices are on the higher end.

2. TeamMate+

TeamMate+ is a comprehensive software tool built specifically for audit management. With complete workflow solutions, it handles the audit process from planning and execution to reporting and follow-up. This makes TeamMate+ best suited for companies who want an end-to-end audit management solution.

Features

• Configurable and scalable: TeamMate+ is flexible and can be configured to fit your business model and audit strategy, whether this is to launch a new process or fit in with the current one. This also means TeamMate+ can grow with your business and adapt as your business needs change.
• User-friendly dashboard: TeamMate+’s dashboard visually showcases data to give you a comprehensive overview of your audit process. Its color-coded representations can track various trends and warn you beforehand of possible risks.
• Analytics and reporting: With its native Excel-based analytics tool, TeamMate Analytics, you can view important data to make strategic decisions and reach your organizational goals.

The end result is that internal audits are more likely to catch problems before they become issues and can provide information to external auditors more efficiently. This reduces audit billable hours and overall expenses.

Rating

TeamMate+ has received positive feedback on its customization and integration capabilities, as well as user-friendliness and customer support. Based on 49 reviews on Gartner, TeamMate+ scores 4.2 out of 5. This program works well for companies of any size.

Pricing

TeamMate+ offers subscription-based pricing, but no free plan. Pricing plans aren’t publicly available, so you have to contact a sales representative for a personalized quote according to your requirements.

3. Resolver

Resolver has modules for audit, risk, compliance, investigations, and security operations. The audit module is a cloud-based platform for your company’s internal audit, including planning, execution, and reporting. Resolver is best for companies with less than 1,000 employees or users as its currently customizability may not be enough for bigger companies.

Features

• Centralized platform: Employees can manage processes, risks, controls, and tests from one location. This means workflows, reminders, and alerts are automated to allow departments to easily share information between them.
• Reports & interactive dashboard: View the latest risk exposure data to prioritize risks and allocate resources accordingly. Alternatively, you can view “snapshots” of data on the dashboard by applying the necessary filters.
• Assessment templates: Standardize your assessments with Resolver’s templates, complete with built-in IPPF performance standards.
• First-line client engagement: Use Resolver’s portal to encourage clients to submit and review documents.

Rating

Resolver has positive reviews for ease of use and reporting capabilities, as well as integration and customer support. Based on 10 reviews on Gartner, it has a rating of 4.6 out of 5.

Pricing

Resolver offers subscriptions with customizable pricing based on each company’s needs. Its pricing plans aren’t available publicly, so you can request a specific quote through its website. The total cost will vary based on the company’s specific needs, as there is no set price or free plan option.

Comparing Audit Management Tools

To make the best decision for your company, you’ll need to evaluate and compare each solution based on your specific circumstances. Create an audit software checklist to define your requirements and preferences. For example, you might prefer a unified platform, a comprehensive solution, and/or a cloud-based system.

Keep in mind that tools with automated workflows, integration options, and advanced analytics will likely be more expensive. Consider whether the increased efficiency these features provide is worth the higher price tag.

Moving Forward

Audit management software is a critical part of a proactive approach to risk. All three of the tools above can help streamline your audit process. After choosing and implementing a software solution, be sure to gather feedback from your audit team on whether it’s working for your company. This will help you ensure that you’ve chosen the right tool.

The post 3 Best Audit Management Tools for a Streamlined Audit Process appeared first on Mesh.

The exact implications vary between industries, but in today’s unpredictable economy and constantly changing market conditions, all companies need to safeguard against these risks to prevent loss. We’ve put together a general overview of the different types of operational risks and how to manage them.

Understanding Operational Risk in the Context of Treasury Management

Operational risk refers to the risk of financial loss and diminished reputation due to failures of people, processes, and day-to-day operations, or due to external events.

Operational risk management mainly focuses on how things are accomplished within the organization. It’s typically associated with active decisions related to how the organization functions and what it prioritizes. If mismanaged, operational risks can have severe consequences in treasury management, which can even lead to permanent closure of the business.

5 Types of Operational Treasury Risks + Mitigation Strategies

1. People Risk

This refers to the risk of loss due to poor management of human capital and resources. Typically, people risk involves the company’s ability to hire, manage, and train employees. Inadequate people risk management can result in simple mistakes or more severe consequences like fraud or unethical behavior.

Best practices for managing people risk:

• Ensure that you’re attracting the right candidates for every role with detailed and accurate job descriptions for all team members.
• Thoroughly assess potential candidates, specifically analyzing their fit within your company culture in addition to their background and qualifications.
• Provide regular training on policies, procedures, risk awareness, fraud, and other relevant subjects.
• Establish a communication structure for everyday operations as well as fraud reporting.

2. Process Risk

This is the risk that daily internal processes will fail, leading to financial loss or loss of reputation. Process failures can be caused by a malfunction or breakdown of manufacturing equipment, outages within communication channels, human error, or the design of the process itself.

Consider these process risk mitigation strategies:

1. Review prior incidents to identify risks, including potential bottlenecks and safety issues.
2. Create a process map to pinpoint any interdependent processes and areas of risk exposure.
3. Look for opportunities to implement automation, which reduces the risk of human error in manual processes.

3. Systems Risk

Systems risk is defined as the risk of loss due to the failure of internal systems. Internal system failure might involve a loss of power, computer hardware failures, viruses or malware that affect system use, or security breaches.

Try these tips to mitigate systems risk:

• Brainstorm with your team by asking “what if?” questions to prepare for worst-case scenarios. For example, “In case the power fails, we’ll have a generator on-site.”
• Protect your company devices with encryption, antivirus software, and other security measures.
• Provide regular IT security training to staff members.
• Back up your data daily.
• Review user access controls at least once a year.

4. Legal & Compliance Risk

This refers to the risk that losses will occur due to non-compliance with regulations and laws. Legal and compliance risk usually relates to tax laws, human resource regulations, OSHA regulations, EPA regulations, and internal codes of conduct or policies.

Reduce legal and compliance risks by:

• Identifying and assessing risks through consultation with different departments.
• Designating the ownership and management of specific risks to the departments or individuals who have relevant expertise.
• Establishing disciplinary procedures for non-compliance with internal policies.
• Using automation and external advisors to audit and manage compliance.

5. External Events Risk

This is the risk of loss due to external events that are outside the company’s control. External events could include natural disasters, protests/riots, war, disease, supply chain disruptions, cyberattacks, economic volatility, or viral social media content.

Even though the prevention of external events is out of your control, you can mitigate the resulting risks to your business. Here’s how:

• Study how various external events are affecting other companies. Use this information to come up with mitigation strategies.
• Implement crisis, emergency management, and business continuity plans to be used in the event of natural disasters, inclement weather, pandemics, or civil disruptions.
• Make sure you have insurance to cover losses due to external events. For example, a business interruption rider can protect you from income loss if your operations are interrupted due to a fire, burst pipe, or natural disaster.

Manage Operational Treasury Risks with Automation

Operational treasury risks are no small matter, and neglecting to manage them can have catastrophic consequences. Luckily, automated solutions can help you to identify and manage many of the operational risks mentioned above, and give you real-time feedback on the health of your company.

The post Operational Treasury Risks: Overview, Types and Management Strategies appeared first on Mesh.