One of the essential aspects of your business is how you manage your corporate spending. This is why it’s highly important to incorporate a spending management process into your company.

In this article, you’ll learn how spend management works, what advanced tools you can use to optimize the process, and, more importantly, the vast range of benefits it can bring to your company.

What is spend management?

Spend management is a crucial process that allows you to monitor, control, and evaluate your entire corporate spending.

On a daily basis, most companies can have multiple transactions taking place across almost every area of the business – whether it be employee expenses, product purchases, or any other type of payment.

On top of that, you also have the countless data, documents, and processes that revolve around your spending – such as completing an expense report template after business travel or collecting receipts after payment.

Whatever contributes towards your corporate spending, spend management helps you keep it organized and controlled.

That being said, there are many different ways you can execute this process – the most effective being to incorporate spend management software.

How does spend management software work?

Spend management software is an advanced tool that helps you complete your spend management process more efficiently and effectively.

With the software, you’ll be able to effortlessly track every transaction that takes place in your company. With every payment, you’ll receive a wide range of useful data, such as the time of payment, the amount spent, what was purchased, and much more.

The software will also give you access to a variety of features designed to give you a firm handle on your spending, with things such as spend controls, insights, etc.

With expert software at your disposal, you’ll have the ultimate tool to optimize your spend management process.

What are the benefits of spend management software?

There are many benefits to implementing spend management software in your company, which can include things like:

  • Complete visibility on spending

Spend management software can give you total visibility over your corporate spending, and this is vital for your process to work effectively.

Every time a payment is made in your company, the software can automatically record and analyze the transaction. This can be a payment made in any area of the business, from any team, across any company card, for example.

With each payment, you’ll be able to see how much was spent, what was purchased, who the recipient company was, and various other data.

This accurate and automated data from each payment will help you have a bigger-picture view of your corporate spending and have all the information necessary to implement the right strategies moving forward.

  • Advanced spend controls

Another major benefit of spend management software is the variety of advanced spend controls you can incorporate into your process.

One example of the many spend control features you can use is putting spend limits on your payments.

These are specific limits on your payments that stop any transactions from exceeding a certain amount. You can customize these limits to different teams, various types of purchases, or individual cards, for example.

With features like this, you can tailor every aspect of your company’s spending to suit your needs, goals, and budgets.

  • A variety of spending insights

Your software can also offer a range of meaningful spending insights to ensure you’re continuously being as cost-efficient as possible with your spending.

Among the many insights you gain, for example, you’ll receive information on any cheaper alternatives to transactions you make.

This could be something like a software subscription, for instance, that you pay for on a regular, monthly basis. You can then be notified of any other software that offers the same service but at a lower price.

With insights like these, you’ll have the most effective way of increasing your cost-efficiency and be able to fully optimize your corporate spending.