By Keith O’Leary
A recent survey from Duke University and CFO Magazine finds that CFOs of global companies expect a nearly nine percent increase in capital expenditures this year over 2010. I’m sure that they’d like to be able to rein in that spending, but it’s tough when they don’t have an effective approach for managing the process.
Successful capital spend management requires visibility and control at every level of a project, from budget creation and approval through requisition approval and procurement. In the face of intensifying regulatory pressures and changing technology requirements, which I’m sure are big factors in that nine percent increase, many CFOs are rethinking their spend management strategy. We find that they’re looking for a tool that provides an end-to-end, real-time view of the capital allocation and spending process, information they can use to make key decisions.
Putting in place tools for managing capital projects enables CFOs to reduce unapproved expenditures and account for how capital is managed and spent.
How is your CFO taking control of your organization’s capital spend?