Exclusive: Automation Reshapes Financial Management for Businesses

The Middle East is experiencing a transformative shift in its business landscape, moving from a “stabilise and survive” mindset to one focused on rapid growth. This change brings new challenges, with companies operating at unprecedented speeds and requiring streamlined financial processes to maintain resilience.

Spend management software and advanced accounting systems have emerged as essential tools for this evolution. They automate routine processes, minimise errors, and offer real-time insights into financial health, enabling businesses to adapt swiftly to market demands. In the MENA region, the adoption of spend management solutions like Qashio has not only tackled operational inefficiencies but has also significantly boosted process efficiency—empowering businesses to thrive in this fast-paced environment.

by Armin Moradi, CEO and Co-Founder of Qashio

Challenges businesses face today

The MENA region’s reliance on traditional methods, such as petty cash for expense management, has created persistent inefficiencies. Businesses often waste hundreds of hours annually on manual reconciliations and managing misplaced receipts. Beyond operational hurdles, these methods are environmentally unsustainable, contributing to excessive paper usage.

With the UAE’s goal of achieving a 90% cashless economy by 2026, digital solutions have become urgent. Spend management platforms address these challenges by automating reconciliations, digitising receipt collection, and eliminating the need for petty cash. These tools not only save time but also help companies stay VAT-compliant while aligning with government initiatives like Digital Dubai’s vision to go 90% cashless by 2026. Overall, businesses can make more informed decisions, refine policies, and spot anomalies or potential fraudulent activities.

As we approach Q1 of 2025, let’s delve into the various aspects of this evolution to understand where financial management is headed.

2025 Trends in Financial Management

Change Management: Unlike earlier approaches, where organisations adapted their processes to fit the tools they adopted, the focus has shifted. Now, tools are designed to align with and support an organisation’s unique requirements. For spend management, this approach minimises disruption, enhances adoption, and ensures that technology serves as an enabler of existing workflows rather than a driver of change. By prioritising flexibility and adaptability, businesses can implement modern solutions seamlessly while preserving their operational integrity.

Smarter Fraud Detection: AI-powered insights enhance fraud detection by flagging anomalies in real time, safeguarding financial systems. Digital expense management solutions are crucial, especially as the PwC Global Economic Crime and Fraud Survey 2022 highlighted US$42 billion in losses from expense fraud. These tools enforce strict controls and approval processes, reduce unauthorised spending, and leverage advanced algorithms to swiftly identify suspicious activities. With transparent, traceable transactions, they deter fraud and ensure financial accountability, protecting a company’s financial integrity.

Enhanced Access to Credit: Access to lending and credit will also play a pivotal role in how companies scale with their spend management solution without cash flow disruptions. The World Economic Forum cited that around 32% of MENAP firms identify credit access as a key challenge, with traditional banks often limiting SME lending due to perceived risks. Fintech companies are bridging this gap by offering instant working capital financing and providing companies with quick and accessible credit solutions.

Reward-Driven Spending: Spend management platforms now offer robust reward programmes, enhancing cost efficiency through discounts and cashback. Corporate cards enable businesses to earn and redeem points strategically by focusing on high-reward categories or vendors. These points can be used for gift vouchers, merchandise, or additional business-related expenses, maximising the value of company spending.

Multi-Currency Solutions: With the global nature of business in the region, multi-currency cards are reducing the fees associated with international transactions. This trend is set to streamline cross-border expense management, enhancing operational agility.

How businesses can plan

Financial management is becoming more automated, efficient, and customer-centric. As companies prepare for Q1 2025, it is critical to establish a strong foundation for financial processes. This starts with setting clear and transparent expense policies to minimise errors and ensure consistency across the organisation.

Analysing historic spending trends can provide valuable insights into cash flow requirements and help businesses plan more effectively to avoid overspending during peak periods. Leveraging advanced technologies like spend management platforms can further streamline operations by automating tedious manual processes, reducing manual errors, and saving time.

By combining strategic planning with the power of automation, businesses in the MENA region can confidently navigate the evolving financial landscape and focus on sustainable growth.