In this article
You might like
No items found.
Spending made smarter
Easy-to-use cards, spend limits, approval flows, vendor payments —plus an average savings of 5%.1
|
4.8 Rating 4.8 rating
Error Message
No personal credit checks or founder guarantee.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Get fresh finance insights, monthly
Time and money-saving tips,
straight to your inbox
|
4.8 Rating 4.8 rating
Thanks for signing up
Oops! Something went wrong while submitting the form.
Table of contents

It’s no longer a growth-at-all-costs environment—but that doesn’t mean the need for business growth has completely disappeared.

As a result, in Q2, we see companies trying to strike a delicate balance between growth-oriented spending and cost cutting measures for potentially tough times ahead. Our newest report, 2022 Q2 spending benchmarks, sheds light on the tough tradeoffs that finance leaders are being asked to make.


What you’ll find

Data on how business spending has shifted quarter-over-quarter

image


Spending in Q2 grew at a faster rate than in Q1. But while we saw transaction volume rise in most major categories, there were some notable exceptions. Companies held back on electronic spending, and fluctuating transaction volume month-over-month reflects uncertainty about the economy.

A closer look at how spending priorities change with company size

image


Differentiated spending patterns emerged when we cut expenses by company size. SMBs invested in general merchandise and T&E, but cut back drastically on electronics. Mid-market companies also saw a sharp increase in T&E spend while keeping their ad spend flat. Enterprise companies balanced increases in shipping and software expenses by reducing professional services.

Insights on how companies are adjusting their ad spend

image


Overall share of ad spend dropped 3.4pp on Ramp cards as compared to Q2 of 2021. Mid-market companies were the biggest driver of this decline, indicating that they are aiming to curb growth-related expenses. On the other hand, we saw enterprise ad spend tick up in the second quarter, with the average customer increasing spend by 17.7% in Q2.

Signs of optimism and uncertainty in T&E spending

image


On average, companies spent 46.7% more on T&E in Q2 vs. Q1. But that’s not the whole picture. While T&E transaction volume rose across the board, the average size of entertainment transactions decreased for nearly all business segments, indicating more discerning budgetary requirements for most companies. In June, we also saw companies tightening total allowable spend on business trips.

Get the full report

As you start to prepare your 2023 budget, download our report to see how your company’s spend compares with other businesses of your size or industry. Where do you need to trim costs? Where can you afford to spend more to stay on par with your peers’ investments? At Ramp, we’re committed to providing you with the financial intelligence and tools you need to optimize spend and drive long-term stability and success.

Try Ramp for free.
Error Message
No personal credit checks or founder guarantee.
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.
Content Lead, Ramp
Fiona writes about B2B growth strategies and digital marketing. Prior to Ramp, she led content teams at Google and Intercom. Fiona graduated from UC Berkeley with a degree in English. Outside of work, she spends time dreaming about hiking the Pacific Crest Trail one day.
Ramp is dedicated to helping businesses of all sizes make informed decisions. We adhere to strict editorial guidelines to ensure that our content meets and maintains our high standards.

FAQs

How Ramp helped Viking Well Service institute a more efficient expense management process

“Having the purchase order and bills all in one place just makes a whole lot more sense for the type of business that Viking’s doing, because you can simplify it down to a one-line-item type deal. That’s really important for control purposes, for visibility."
Chris Lowdermilk, Senior Controller, Viking Well Service

How Ramp Procurement helped NPHY simplify, save time, and improve transparency

“Before Ramp Procurement, requests could take up to a month. Now the process is complete in a matter of days, meaning we can get much needed supplies and focus on delivering care to our clients (teenagers in crisis) faster.”
Michelle LaBonney, Director of Finance & Operations, Nevada Partnership for Homeless Youth

How Betterment manages corporate spend for five entities with Ramp

“With Ramp, we can save rules directly to the card. Transactions from any of our monthly vendors come in already coded, so that’s been a huge time saver.”
Marianne Hawes, Senior Accountant, Betterment

How Alexandra Lozano Immigration Law prepared for scale with Ramp

"I used to have to call our card provider and sit on the phone for a couple hours a week, I don’t have to do that with Ramp.”
Wayne Robinson, CFO, Alexandra Lozano Immigration Law

How Ramp helped Smart City Apartment Locating save time, expedite month close, and grow sustainably

"Five to 15 hours each month of non-value-add activities are off my plate. I’m able to be a strategic advisor versus just a tactical manager when it comes to spend management.”
Dustin Walsted, VP Finance, Smart City Apartment Locating

How TaskHuman built their runway with Ramp

“I’ve pretty much seen or used everything that’s out there, everything does something Ramp does, but nothing does everything Ramp does.”
Matthew Ferguson, Controller, TaskHuman

How First Tee transformed its bookkeeping and saved time with PwC and Ramp

"The efficiency of using PwC Bookkeeping Connect, coupled with the Ramp platform, has probably been about 75% time savings. Instead of every hour I would have had to spend on bookkeeping, I’m probably having to spend maybe 10 or 15 minutes.”
Dan Burke, CEO, First Tee San Francisco