Brian Veloso, Managing Director at SAP Concur Canada, discusses with CanadianSME Small Business Magazine the intricate challenges Canadian businesses face with rising expense transaction costs amid inflation. He highlights how technological advancements and globalization have increased transaction volumes and complexities, complicating expense management. With a notable 34% increase in the average expense transaction cost since 2019, primarily in sectors like transportation and entertainment, the urgency for businesses to adapt and manage escalating costs is clear. Brian emphasizes the benefits of leveraging expense management systems like SAP Concur to gain real-time data insights, improve expense tracking, and forecast expenditures efficiently. He advocates for the integration of advanced technologies such as AI to help businesses control expenses and predict future trends more accurately, ensuring they remain agile and informed in their financial strategies.
Brian Veloso has worked with SAP Concur for over 15 years, beginning as the company’s first Regional Sales Executive and moving up consecutively within the organization. Now serving as Managing Director for Canada, Brian is a seasoned sales professional with an unmatched combination of business acumen, sales savviness and product knowledge accumulated over the past 23 years through his experience at ADP and Gelco Expense Management. At SAP Concur, Brian leads high performing teams and is focused on delivering cloud-based solutions that deliver an effortless experience for employees and total transparency into spending, helping organizations of all sizes run better.
Outside of work, Brian enjoys spending time with his dogs and family at the cottage. He is also passionate about raising awareness and funds for Make-A-Wish Canada and the SickKids Foundation.
SAP Concur’s data has shown a substantial increase in the average expense transaction costs for Canadian businesses. What are the specific challenges these businesses face in managing these rising costs and the role of inflation in this trend?
The challenges Canadian businesses face with rising expense transaction costs are multifaceted. Firstly, inflation plays a significant role, driving up the prices of goods and services, thereby increasing the cost of business operations. This inflationary pressure directly impacts expense management, requiring businesses to allocate more funds to cover essential expenditures. Additionally, technological advancements and globalization have expanded business operations, leading to increased transaction volumes and complexities.
In light of our recent announcement regarding the 23/24 financial year, the data reinforces the challenges faced by Canadian businesses. The substantial 34 per cent increase in the cost of the average expense transaction, compared to pre-pandemic levels in 2019, highlights the significant impact of rising inflation on operational costs. The analysis also identified specific areas where businesses are experiencing the most significant cost hikes, such as gas, car hire, ground transportation, and entertainment, with train transportation emerging as the top expense. This data underscores the urgency for businesses to address these rising costs and implement effective strategies to manage expenses more efficiently.
With the financial landscape currently being very volatile, how can businesses effectively use expense management systems like SAP Concur to better control and forecast their expenditures?
In a volatile financial landscape, businesses can leverage expense management systems like SAP Concur to enhance control and forecasting of expenditures. We offer real-time data tracking, automated reporting, and customizable dashboards that provide insights into spending patterns, enabling proactive decision-making. By integrating with other financial systems, SAP Concur ensures accuracy in expense forecasting, helping businesses adapt to changing economic conditions and optimize cost management strategies.
Looking ahead to the 24/25 financial year, what strategic advice would you offer to finance leaders to navigate the ongoing economic pressures effectively?
As we approach the 24/25 financial year, my strategic advice to finance leaders is to prioritize agility and innovation in their financial management approach. Embracing technology-driven solutions like AI solutions can streamline processes, improve efficiency, and enhance accuracy in financial forecasting and decision-making. Additionally, fostering a culture of data-driven insights and collaboration across departments can facilitate informed financial strategies that navigate economic pressures effectively.
At Fusion 2024, SAP Concur announced new AI integrations. How do you see these advancements influencing the efficiency and accuracy of travel and expense management for your clients?
The new AI integrations announced at Fusion 2024 mark a significant milestone in enhancing the efficiency and accuracy of travel and expense management for our clients. These advancements leverage AI algorithms to automate expense categorization, detect anomalies, and provide predictive insights. As a result, clients can streamline expense processes, reduce errors, and gain actionable insights that drive smarter financial decisions and cost optimizations.
Given the evolving economic conditions, what future strategies is SAP Concur developing to continue supporting businesses in managing their expenses and financial planning more effectively?
Looking ahead, SAP Concur is focused on developing future-proof strategies to support businesses in managing expenses and financial planning effectively amidst evolving economic conditions. This includes ongoing investments in AI and machine learning capabilities to further automate processes, enhance data accuracy, and deliver predictive analytics. Additionally, we are expanding our ecosystem partnerships to offer integrated solutions that address diverse business needs and enable seamless financial management across organizations.
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