A few weeks ago, a manager at one of our client companies said he needed £10,000 worth of new equipment to complete a task.
Instead of rubber-stamping the request, his line manager pushed back — was the spend really necessary? Was there another way to get the job done?
The next day, the manager “discovered” every single item he needed sitting in the company warehouse.
Not a single penny needed to be spent.
This incident perfectly illustrates a key principle:
If you want to keep a lid on your company’s spending, you need to make it harder for people to spend money.
When it’s too easy, spending becomes the default. But when there’s a little friction in the process, people get creative — and only the truly necessary expenses make it through.
So, what’s the most effective obstacle you can introduce?
Require that every purchase order be approved by you, someone in finance, or another senior leader — so no one can commit company money without a second set of eyes.
Skipping this step is one of the most common (and costly) mistakes we see. Too often, managers approve their own POs, and the first time you hear about the spend is when the invoice lands on your desk.
By then, it’s too late.
Whether you agree with the purchase or not, the company is already committed. All that’s left is to pay the bill.
This simple change is one of the most effective we implement for our clients.
Take one company we recently transitioned onto our state-of-the-art accounting platform, iplicit. We configured the system so that only a select few senior leaders could approve POs. Previously, spending was only tracked after the fact.
Unsurprisingly, the cultural shift didn’t come without pushback.
Some managers objected: “But I’ve always signed off my own POs.”
Or the classic: “We’ve always done it this way.”
Which, of course, was exactly the problem.
The old system led to inflated costs and minimal accountability. Managers approving large sums weren’t tuned into the broader financial goals — or, in many cases, didn’t care enough about them.
What was needed wasn’t just a new process — it was a new mindset: one where managers understand that every penny matters and spending is never automatic.
We knew this wouldn’t change overnight. So we worked closely with the team — explaining the reasons behind the change, answering questions, and helping everyone adjust to the new way of working.
It took a thoughtful, empathetic approach…
…but it’s already paying off.
Managers are still submitting purchase orders — but only when it’s genuinely necessary. And often, they’re finding smarter, more cost-effective alternatives instead.
When we manage your company’s finances, this kind of purchase control is just one of the many ways we help you get a grip on costs.
Where appropriate, we’ll review your expenditure line by line to identify potential savings —and support your team in developing a culture of financial accountability.
We bring a full toolkit of systems and processes designed to ensure that every pound spent is deliberate, justified, and contributes to your business growth.
And that’s just one piece of the puzzle.
At Insight Associates, we take a truly holistic approach to your finances — so you can become more profitable, grow faster, and stay in financial control, every step of the way.
If you’d like to learn more, just email garry@insightassociates.co.uk or call us on 01279 647 447. We’d be happy to chat.
Warmly,
Garry
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