Classifying spend data can often seem like a huge and overwhelming task, especially if you’re starting from scratch and, more often than not, it’s a task that gets pushed further and further down the priority list.

You may even already be thinking about it, or can’t justify the time or resources, or it might be something that you think is just a complete waste of time. But I’m here to tell you why you need to make it your top data priority in 2022!

Finance departments use GL codes to track spend. We’re looking at items like office supplies, marketing or maybe a specific project within the business. However, what finance are looking for and what procurement are looking for can be two quite different things.

The Trouble With GL Codes

Firstly, if you're only using your general ledger codes, I can almost guarantee they are wrong! In my experience working with GL codes, I would say 90% of them are unreliable. You'll almost always find something classified under a GL that shouldn't be there.