Business leaders, are disjointed systems draining your budget faster than an out-of-control firehose? I feel your pain. Managing our company’s ballooning SaaS costs was a losing battle until we implemented an airtight spend strategy.
In this complete guide, I’ll share the hard-won lessons that helped us finally rein in expenditures. You’ll get proven steps to track every SaaS subscription, align tools with real needs, weed out waste, and optimize contracts like a pro.
With targeted solutions, we tamed the SaaS spend beast and pumped savings back into growth. You can too! Say bye to budget-busting bloat and hello to your lean, mean SaaS machine. Join me as we create order from chaos, once and for all. When SaaS solutions streamline instead of drain, you have the momentum to accomplish incredible things.
Let’s stop the money leak and fuel the future you deserve!
Consider these things when choosing SaaS to spend management tools.
But how do you find the best business solutions for spending management? There are many SaaS products, so it’s important to understand what’s out there.
Our strategies will help you make the most of your spend management solutions. We’ll also help you find the best tools for your needs. Keep reading to discover the best spend management software and strategies.
Step 1: Perform SaaS Inventory
Here’s a surprising statistic: companies spend nearly $3000 on SaaS software annually.
How do you avoid overspending?
Start by taking inventory of your company’s SaaS products.
Getting rid of your duplicate, outdated, and unused programs could save you thousands of dollars annually.
Analyze the spend management software you’re currently using and find out the following:
- which products you’re paying for
- what you’re using them for
- how much the software cost
- when the licenses expire
- whether you have duplicate programs
This information will guide you to spend management tools and solutions better.
Step 2: Know Your SaaS Contract
Another key step needed to develop a budgeting plan to manage spending is understanding the contracts of your SaaS software.
If you need to pay attention to details like renewal fees, termination fees, your contract term, and effective date, you could spend a ton of money.
Knowing the details of your contract will help you save money and ensure you’re getting quality service.
Step 3: Choose the Right SaaS Spend Management Solutions
Once you’ve determined which SaaS products you use, it’s time to ensure you’re using the best spend management software.
These ramp alternatives are all great options for spending management:
- Bento
- Brex
- Airbase
- Divvy
- Expensify
- Spendesk
- TripActions
Step 4: Perform Regular Reviews of SaaS Software
More than just taking inventory of your spend management software is needed to develop the best budget. Regularly reviewing the Software used by your company will help you save money and create the most effective budget.
Here are some things to consider when reviewing your spend management software:
- Who uses the Software on your team?
- Are there better tools on the market at the time of your review?
- Can you cut or switch Software?
- Are your vendors increasing their software prices?
Analyzing these questions regularly will maximize your budget and help you optimize your spending. Innovations happen in Saas all the time, and it’s important to determine if you’re using the best solutions.
Successful SaaS Spend Management
Successful Software as a Service (SaaS) spend management is crucial for organizations to optimize their software expenses and ensure efficient utilization of SaaS tools. Here are the steps to achieve this:
1. Inventory and Audit
- Begin by creating a comprehensive inventory of all your SaaS subscriptions. This includes identifying which departments or teams are using each tool.
- Conduct regular audits to track each SaaS application’s usage, renewal dates, and costs.
2. Centralize Data
- Centralize all SaaS subscription data, including contracts, invoices, and usage statistics, in a single repository or software management platform. This helps in better visibility and control.
3. Categorize and Prioritize
- Categorize your SaaS tools into essential, functional, and non-essential categories. Prioritize those that are critical for your business operations.
4. Cost Analysis
- Analyze the cost-effectiveness of each SaaS application. Determine if the benefits outweigh the expenses.
- Consider each tool’s scalability and pricing model to ensure that it aligns with your organization’s growth plans.
5. User and License Management
- Implement user management practices to allocate licenses efficiently. Ensure that users have access only to the tools they require for their roles.
- Monitor user adoption and adjust licenses accordingly to avoid overprovisioning.
6. Contract Negotiation and Optimization
- Regularly review and negotiate SaaS contracts with vendors. Look for opportunities to optimize pricing, add-ons, or discounts.
- Consider longer-term contracts if they provide cost savings, but be mindful of flexibility in case your needs change.
7. Renewal Management
- Establish a clear process for tracking and managing contract renewals. Avoid auto-renewal unless it’s in your organization’s best interest.
- Evaluate whether you still need the tool or if there are more cost-effective alternatives.
8. Usage Monitoring
- Continuously monitor SaaS usage to identify any underutilized tools. If a tool isn’t providing value, consider canceling or replacing it.
- Implement alerts for significant changes in usage patterns, which can indicate potential issues or opportunities for optimization.
9. Employee Training and Communication
- Ensure employees are trained to use SaaS tools effectively to maximize their value.
- Communicate changes in SaaS usage policies and the rationale behind them to foster understanding and compliance.
10. Data Security and Compliance
- Ensure that all SaaS applications comply with data security and privacy regulations relevant to your industry.
- Conduct regular security assessments and audits to mitigate risks associated with SaaS tools.
11. Expense Reporting and Tracking
- Implement an expense reporting system to track SaaS expenses. This helps monitor costs, allocate expenses to departments, and identify anomalies.
12. Regular Reviews
- Hold regular reviews with key stakeholders to discuss SaaS spending, usage, and optimization opportunities.
- Continuously refine your SaaS spend management strategy based on changing business needs.
13. Utilize SaaS Management Tools
- Consider using specialized SaaS management tools or platforms to automate the above tasks and provide real-time insights into your SaaS environment.
14. Feedback Loop
- Encourage feedback from employees regarding the usability and effectiveness of SaaS tools. This can help in making informed decisions about renewals and usage.
Moving Forward
There are a variety of tools and solutions you can use to optimize your SaaS budget. The tools and strategies listed in this guide are great options. But without regular reviews and proper analysis, you could overspend on SaaS spend management.
If you want to save money, stay on top of your inventory, get ahead of contracts, and take stock of your company’s needs.
