Ultimate Guide to SaaS Spend Management in 2024

SaaS (Software as a Service) tools power modern businesses. From email to project management to accounting, there's likely a SaaS solution for almost every need. But as your SaaS stack grows, managing costs and subscriptions gets harder. Missed renewals, unused licenses, and surprise price hikes can all hurt your bottom line.

That's where SaaS spend management comes in. It gives you much-needed visibility into your software spending. With this control, you can optimise costs, negotiate better deals, and make sure you're getting the most value from every SaaS dollar spent. The right tool is crucial – so how do you choose the best one for your business?

The Need for SaaS Management Tools

Software has become an essential aspect of every business. Teams use it for communication, collaboration, design, marketing—the list is endless! While these tools offer excellent benefits, their sprawl makes it easy to lose track of exactly what you're paying for. Without a centralised system, spreadsheets become the norm. But these are error-prone and time-consuming. 

A dedicated Spend management software like Juni can streamline your financial operations. Its built-in accounts payable and invoice automation features centralise your financial admin, saving you valuable time. Plus, it includes features tailored to boost the profitability of e-commerce businesses.

You get real-time visibility into your spending, and make informed decisions about your software investments. Plus, better vendor management puts you in the driver's seat when it comes to renewals and negotiations.

Features for Optimal SaaS Management

Keeping your hands on the right solution means focusing on the features that deliver maximum value for your business. You can head to the following features to find the perfect fit:

• Centralised Spend Overview: You need a single, intuitive dashboard displaying all your SaaS transactions. This provides a quick, real-time understanding of your software budget and spending.
• Receipt Management: Say goodbye to chasing down receipts. A good solution will automatically collect, upload, and match receipts to transactions, streamlining accounting and auditing.
• Virtual Cards: These give you granular control over spending. Create separate cards for different teams or subscriptions, set limits, and easily track where every dollar goes.
• Reporting and Insights: Look for customisable reports and dashboards. Track metrics like unused licenses, underutilised subscriptions, and upcoming renewals. These insights are crucial for optimising costs and forecasting future spending.

Key Considerations Before Evaluation

Choosing the right SaaS spend management software requires more than just jumping into the first solution you find. To ensure you get the best fit for your needs, take some time to assess these key factors.

Firstly, understand your current landscape. Consider how many different applications your company uses, your overall SaaS spending, and whether the responsibility for managing subscriptions is centralised or distributed. Clarifying these will help you determine the complexity level you'll need from a spend management solution.

Additionally, take stock of your existing processes for software procurement, renewals, and onboarding. If these aren't clearly documented or streamlined, finding a tool that can automate and simplify these areas will be highly beneficial. 

Finally, look at your current tech stack. What other systems, like accounting or ERP software, would ideally integrate with your SaaS spend management platform? Choosing a solution with strong integrations will prevent data silos and save you a lot of manual work.

Additional Evaluation Factors

Beyond core features, these practical aspects will influence your long-term success with the chosen SaaS spend management tool:

• Ease of Use and Implementation: An intuitive interface means less training and faster adoption. Look for a vendor offering excellent setup support to minimise disruption.
• Scalability: Your SaaS tool needs to grow with your business. Will it handle increased subscription volume and complexity as your needs evolve?
• Security & Compliance: Protecting sensitive financial and subscription data is non-negotiable. Choose a provider with strong security certifications, data encryption, and access control protocols. Consider whether they support any compliance requirements relevant to your industry.

Making the Decision

Prioritise your must-haves by returning to the key needs you outlined earlier, ensuring your top contenders truly address your specific pain points. Experience counts, so take advantage of free trials to test the features in your real-world environment and see how the interface feels for you and your team. Don't just consider the sticker price, but factor in the potential savings, increased efficiency, and improved contract negotiation power that the tool could bring to your organisation.

Conclusion

As businesses rely more heavily on SaaS tools, smart spend management isn't optional – it's essential. The right solution brings visibility, control, and long-term savings to your software stack. Investing time in careful selection will pay off with streamlined software management, optimised budgets, and the confidence that you're getting maximum value from every SaaS dollar.