Today SAP Concur announced the results of its review into the costs of business expenses for the 23/24 financial year, which showed a 34 per cent increase in the cost of the average expense transaction compared to pre-pandemic levels in 2019, likely driven by rising inflation.
This is more than four times the 8.1 per cent inflationary rate at the peak of Canadian inflation in June 2022. This demonstrates that Canada, in particular, has been hit harder than average by inflationary increases compared to the rest of the world. Using SAP Concur data from thousands of businesses across Canada, the company has been able to pinpoint some of the main areas where businesses face rising costs and paint a clearer picture on where inflation is damaging profits.
The biggest culprits for rising costs came from gas, car hire and ground transportation which rose 40 percent, 36 per cent and 35 per cent respectively. Similarly, the cost of entertainment also saw a large inflationary rise, coming in at a 35 per cent increase. But the cost of train transportation took the top spot as the biggest expense for businesses, amassing 85 per cent of the total expense amount.
Through SAP Concur’s analysis, it’s clear that businesses across the board are facing real increments in their additional costs. Most of which are often unseen or unaccounted for early on in the financial planning process. Chris Juneau, head of market strategy at SAP Concur said “For all businesses, the costs of operating in the current global market has become trickier with time and the 23/24 financial year was no exception. As the end of the year approaches, now is the time that finance managers and business leaders need to be analysing their outgoings, forecasting for the next financial year and re-evaluating policies to deliver a more robust year ahead.”
To ensure the smooth management of finances in 24/25, finance leaders need to take advantage of every spending moment to navigate times of change. Through the implementation of expense management systems, businesses need to look at ways in which they can better control expenditure. Whether that’s through greater monitoring of expense compliance, improving visibility or improving data driven decision making, finance leaders can take active steps to gain better control for the new financial year.
You can have a look at their write up on this topic here.
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Inflation drives up Canadian business cost by 34 per cent for 23/24 financial year: SAP Concur
Today SAP Concur announced the results of its review into the costs of business expenses for the 23/24 financial year, which showed a 34 per cent increase in the cost of the average expense transaction compared to pre-pandemic levels in 2019, likely driven by rising inflation.
This is more than four times the 8.1 per cent inflationary rate at the peak of Canadian inflation in June 2022. This demonstrates that Canada, in particular, has been hit harder than average by inflationary increases compared to the rest of the world. Using SAP Concur data from thousands of businesses across Canada, the company has been able to pinpoint some of the main areas where businesses face rising costs and paint a clearer picture on where inflation is damaging profits.
The biggest culprits for rising costs came from gas, car hire and ground transportation which rose 40 percent, 36 per cent and 35 per cent respectively. Similarly, the cost of entertainment also saw a large inflationary rise, coming in at a 35 per cent increase. But the cost of train transportation took the top spot as the biggest expense for businesses, amassing 85 per cent of the total expense amount.
Through SAP Concur’s analysis, it’s clear that businesses across the board are facing real increments in their additional costs. Most of which are often unseen or unaccounted for early on in the financial planning process. Chris Juneau, head of market strategy at SAP Concur said “For all businesses, the costs of operating in the current global market has become trickier with time and the 23/24 financial year was no exception. As the end of the year approaches, now is the time that finance managers and business leaders need to be analysing their outgoings, forecasting for the next financial year and re-evaluating policies to deliver a more robust year ahead.”
To ensure the smooth management of finances in 24/25, finance leaders need to take advantage of every spending moment to navigate times of change. Through the implementation of expense management systems, businesses need to look at ways in which they can better control expenditure. Whether that’s through greater monitoring of expense compliance, improving visibility or improving data driven decision making, finance leaders can take active steps to gain better control for the new financial year.
You can have a look at their write up on this topic here.
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This entry was posted on April 29, 2024 at 12:05 pm and is filed under Commentary with tags SAP. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.