Maverick Spending Definition
In business, maverick spending is unauthorized or uncontrolled spending. This can happen when an individual employee makes a purchase without approval from their manager, or when a department incurs expenses outside of its allocated budget. Maverick spending can be problematic for companies because it can lead to wastefulness and financial mismanagement.
Maverick spending can have serious consequences for businesses. When purchases are made without proper approval, it can be difficult to track where the money is going and whether or not it is being spent wisely. This can lead to wasteful spending and potentially even fraud. Additionally, maverick spending can put a strain on relationships between employees and managers, as well as between departments.
To avoid these problems, businesses need to have clear policies and procedures in place regarding expenditure approval. Employees should be aware of these policies and know how to follow them. Additionally, businesses should consider implementing systems that make it easier to track and control spending, such as expenditure management software. By taking these steps, businesses can help ensure that maverick spending does not become a problem.
