In today’s economic climate, where every penny counts, businesses of all sizes are rethinking how they manage their finances. Gone are the days of relying on outdated spreadsheets and manual processes. Modern spend management software offers a powerful solution to gain control over expenses, optimise budgets, and boost profitability.
Here are three essential types of spend management software your business needs to consider in 2024:
1. IT procurement software
The digital revolution has transformed how businesses operate. Cloud-based solutions and software-as-a-service (SaaS) have become the norm, leading to a surge in software subscriptions. However, this can quickly turn into a tangled mess of overlapping functionalities and unused licences, driving up IT spending.
This is where IT procurement software steps in. According to software purchasing platform Vertice: “90% of buyers are overpaying for their software by an average of 20-30%” — but with procurement software, buyers can gain real-time insight into their entire SaaS stack.”
This helps identify areas for optimisation, uncovering duplicate subscriptions, redundant features, and unused licences – all representing wasted IT expenditure.
2. Corporate budgeting software
For more general budgeting functionality, financial planning and analysis (FP&A) software is accessible for enterprises of all industries and scales, helping you to manage where company resources are allocated.
If you’re not using software to assist with your budgeting, or you’re scaling your business and wanting to procure a new tool for the job, there are some top budgeting solutions out there that can help you to collect, automate, and organise important financial data.
Investopedia offers some insight into the best FP&A tools on the market. These selections cover a range of business functions, they explain, as “financial advisors often use an array of software solutions including customer relationship management tools, portfolio management tools, trading/rebalancing solutions, and investment analytics.”
For the best fit, you’re best off researching and trialling different products before committing to one. The bottom line is that if solutions like these aren’t included in your SaaS portfolio, you could miss out on savings across procurement, travel expenses, and general financial planning — spend management software is a vital tool for any company in 2023.
3. Travel expense software
If you operate in a line of business that requires frequent travel, you’ll want to invest in a spend management tool.
According to Zippia, at least 35% of US businesses engage in business travel, with the average trip costing $949 altogether. On top of this, the average US company spends 10% of its revenue on business-related travel costs — and chances are, these aren’t funds that you can afford to let slip through the cracks. So, to get the most value for your money when members of staff are on the move, you’ll want to seamlessly track and optimise travel expenses.
There are many moving parts to consider when selecting a travel expense management solution. While some SaaS packages include basic fare-tracking capabilities as part of an all-in-one platform, there are also dedicated tools for expense management. These can provide travel booking, flight tracking, automatic reporting, and approval workflows to streamline the process that little bit more, saving you time and bother.
What’s more, these tools can be further integrated with accounting, time-tracking and HR software you might already have in your portfolio.
The Bottom Line: Invest in Spend Management for a Brighter Financial Future
Spend management software is no longer a luxury; it’s a necessity in today’s competitive economic climate. By implementing the right tools for IT procurement, travel expenses, and corporate budgeting, you gain control over your finances, streamline operations, and unlock significant cost savings.
Remember, a small investment in spend management software can yield substantial returns, allowing you to focus on what truly matters – growing your business and achieving your financial goals.
