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Spending thresholds rarely stop spending. They mostly tell everyone where to stop the invoice, and the pattern is sitting in your own ledger.
SBy Steve··5 min read
Sort a year of purchase invoices by value and plot them. In a great many businesses the shape is not smooth. There is a visible cluster in the band just below whatever number triggers the next level of scrutiny, £5,000, £10,000, £25,000, and a conspicuous thinness just above it. Nobody decided this. It is what happens when a control taxes the buyer’s time rather than the buyer’s budget. The control moves the number, not the decision Approval thresholds are almost always framed as a test the spend must pass. In…
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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.