Those seemingly insignificant budget leaks cost you money over time, and you’ll only notice them when it’s too late. Your bottom line has suffered as a result. Fortunately, technology can anticipate this classic issue and tip the scales in favor of sound spending management. Having the right spend management software in place prevents unnecessary costs and protects your company from shrinking margins. What is business spend management software for if not to stop misallocated funds but also the small everyday costs that add up at the end of the fiscal year? The software also safeguards your hard-earned profits, ensuring that they are returned to your bank account for better use.
Fortunately, there are numerous spending management tools available, and you may be spoilt for choice when purchasing one. Because of the variety of these products and the competition among vendors, it is simple to find a good product; the challenge is identifying a solution that is tailored to your company’s needs.
We’ve dissected these solutions to reveal their most powerful features, such as procurement, purchase-to-pay, and spend management capabilities, as well as their pricing, to help you determine how effective they can be for your company. This allows you to gain insight into the products and select the best software for your company. See 20 Best Document Management Software For Improving Workflow.
What exactly is spend management software?
Simply put, spend management software is any tool designed to help your company manage employee expenses quickly and easily.
This can cover the entire spectrum, from simple receipt scanning tools to credit facilities linked to accounting software.
Despite these new expense management tools, businesses continue to rely on a few techniques to manage company spending:
- Petty cash: Many businesses keep a box of loose cash and coins on hand. And no one knows exactly how much is in there or what the rules are.
- Despite the risk of fraud, the lack of accountability, and the delayed oversight of spending, many businesses can’t seem to break the habit of using company credit cards.
- Expense claims: This unholy trinity is completed by the dreaded expense claim. Employees here pay business expenses out of their own pockets, keep receipts, fill out claim forms, and wait for months to be reimbursed.
Fortunately, budgeting does not have to be as difficult.
There are now better ways for businesses to pay for things, and employees can manage their expenses in a more convenient, secure, and timely manner.
What characteristics distinguish good spend management software?
Not all spend management software is created equal.
No matter how large your operations are, you require a solution that provides:
You don’t want to have to wait until the end of the month to find out how much money you’ve spent. Instead, look for a solution that tracks expenses in real-time and provides a consistent snapshot of employee spending.
- A quick and simple overview: If you can’t perform a basic spending analysis at a glance, something is wrong. Good spend management software presents expense data in a clear and compelling manner, putting you in command.
- Payment options that can be customized include: Not every employee requires access to the same funds. Your software should allow you to specify how much money each person has and what they can spend it on.
- Simple document capture: Companies spend a significant amount of time storing and processing documents such as invoices, receipts, and purchase orders. A good software solution allows you to quickly and easily capture and store these documents.
- Time-saving automation: The most significant disadvantage of traditional expense management is the amount of time it requires. A good spending management platform can free you up to focus on more important—and enjoyable—things.
Best Spend Management Software
We’ve compiled the best business spend management software in this article.
Wave is a fantastic all-purpose bookkeeping tool for freelancers and aspiring entrepreneurs. Because most people in this position lack financial skills, the platform handles the majority of the heavy lifting.
It enables solo entrepreneurs to accept credit card payments, process invoices, and keep their books organized. Of course, Wave includes the essential receipt-scanning software that on-the-go spenders require to track expenses.
Expensify is a useful expense management tool that many small businesses use. Expensify allows users to import expenses from an existing credit card and quickly and easily generate expense reports.
Expensify, aimed at freelancers and small businesses, automates recurring payments and makes it much easier to record and process expenses.
Expensify also gets points for its easy-to-use user interface, which displays expense information on a single screen.
Spendesk is a comprehensive spend management software solution with a slew of user-friendly and useful features. Businesses can use Spendesk to automate recurring expenses and automatically match invoices to expense claims (thanks to OCR software), saving a significant amount of time.
Spendesk’s true strength, however, lies in its adaptability. Spendesk allows businesses to customize debit cards for individual employees and spending categories, and it also provides single-use virtual credit cards for online purchases.
Spendesk also provides same-day payment validation via push notifications, as well as a point-in-time overview of expenses, all in a single comprehensive dashboard. Spendesk also integrates with the majority of accounting software.
FreshBooks is primarily marketed as accounting software, but it also includes an automated expense tool that allows users to record and manage expenses. This is a useful feature for many growing businesses that already use FreshBooks for their accounting needs.
Though it lacks the breadth of features found in other expense management tools, FreshBooks is a good place to start for many growing businesses.
If you already use FreshBooks to manage your accounts, you should look into its automated expense management tool; you might be surprised at how useful it is.
Scanbot is an added bonus on this list because it isn’t strictly for spend management. Instead, you can use this fantastic tool to scan any document with your phone.
That naturally includes receipts and invoices. These documents can be instantly digitised and saved to a folder of your choice. As a result, business travellers can save every receipt as they go, knowing that they’ll have it when they need it (later on).
#6. Receipts Bank
Receipt Bank is laser-focused on one thing: simple data extraction from invoices, bills, receipts, and other expense documents.
Receipt Bank eliminates the need for users to keep physical copies of documents by scanning and automatically uploading them to a variety of accounting software.
This simple design has already saved freelancers and small business owners countless hours of time. Examine it and see if it can help you.
Certify, which aims to simplify the travel expense reimbursement process, assists larger companies in streamlining their systems and saving time. This is especially useful for larger businesses with a mobile workforce.
Certify includes a useful mileage calculator, and its web-based platform allows users to easily manage common travel expenses such as tickets and meals. Companies can also tailor approval flows to ensure that expense claims are routed correctly.
Certify also includes a user-friendly interface that allows users to manage their expenses quickly and easily no matter where they are.
Scannable, created by the team behind Evernote, is similar to Scanbot (above). It allows you to scan any document with your phone. The fact that it integrates natively with the larger tool is an added bonus for Evernote users.
This makes saving receipts and expense report forms even faster and easier. And, because Evernote files are designed to be easy to find, it will never be difficult to locate a receipt from weeks ago.
Avaza combines the key features of project management tools such as Trello or Slite with some useful expense management features. Users can manually or in real time, track time spent on a project, which is critical for agencies and consultants.
The tool allows you to create project budget estimates and then track spending as the project progresses. Expenses are assigned to the appropriate project and can be labelled as non-billable when necessary.
FinancialForce is a multi-purpose cloud accounting tool designed to aid larger businesses in the organization of their operations. FinancialForce is well-suited for businesses looking for a simple, clear picture of their financial performance because it is built with a high degree of flexibility.
While it is more of a general accounting tool than a specialized spend management software, it does include a robust cash management function. Users can use FinancialForce to handle transactions and reconciliations from multiple accounts and currencies.
FinancialForce has a strong emphasis on financial reporting and modeling, allowing users to automate many time-consuming tasks. Businesses that use FinancialForce can also automate vendor payments and quickly match purchase orders and invoices.
AvidXchange is an all-in-one account payable and automated bill payment solution for mid-sized businesses in a variety of industries, including financial services, real estate, energy, construction, and nonprofits. To reduce processing costs, the solution automates invoicing and payment processing while also accelerating approvals. Its goal is to enable businesses to automate the AP process, thereby eliminating manual processes and increasing transparency and control.
With tools such as bill services, invoice applications, purchase order applications, and pay applications, AvidXchange focuses on assisting organizations in streamlining the entire Purchase-to-Pay (P2P) process from purchasing to payment. As a result, the solution ensures that organizations achieve optimal spending, improved reporting, and improved budgeting across all departments.
Kissflow Procurement Cloud is a web-based spend management software solution that provides a variety of tools to help you manage your procurement processes. The software’s end-to-end spend management capabilities allow you to manage purchase requests, orders, and invoices while also providing visibility into your expense data.
The solution also allows for the careful collection of financial records, allowing you to make sense of all relevant information and documents, even if they are dispersed across email, forms, and excel sheets.
Another benefit of using Kissflow Procurement Cloud is that it gives you complete control over your expense processes. For example, you can configure rules and approval workflows for each of your financial transactions using the solution. This allows you to avoid impulsive spending and instead save money for legitimate expenses.
Bellwether is a simple-to-use purchasing software that assists small, mid-sized, and large enterprises in gaining control of their spending, lowering operational costs, and improving regulatory compliance. The solution includes a purchasing manager as well as procurement management, inventory management, vendor performance optimization, and invoice management components.
The best thing about Bellwether is that it is available for both cloud-based and on-premise deployment, making it suitable for both online stores and traditional businesses. Its web-based version is especially useful because it allows for the customization and flexibility needed to manage business spending. What distinguishes Bellwether is that it is available to an unlimited number of users and offers world-class customer support via phone, live chat, and email.
#14. GEP Smart
GEP Smart is an industry-leading supply chain management application with enterprise-grade features that can help you optimize spending and add value to your business. The solution includes a number of spend management tools to assist you in managing your procurement processes from start to finish. Spend analysis, category management, contract management, procure-to-pay, and savings tracking are among the features available.
Furthermore, GEP Smart provides real-time spend visibility, allowing you to stay on top of your spending trends and savings opportunities. You can have a complete and end-to-end view of your supply chain performance using the software’s supply chain visibility and execution tools. GEP Smart also gives you the ability to manage your inventory from logistics to warehouse operations.
Procurify is a cloud-based spend management software that aims to help medium-to-large businesses make the most of their spending. The solution provides tools to help businesses gain greater visibility into their spend, monitor purchases, and accurately report on financial data.
Procurify is marketed as an easy-to-use solution, and its availability on both desktop and mobile devices backs up this claim. Its mobile interface is especially useful for users who need to track approval and manage business spending while on the go. The best part is that Procurify provides the same flawless experience whether you are completing a task on your desktop or mobile device. When you sign up for a Procurify free trial, you can easily investigate Procurify features in depth.
#16. Paramount Workplace
For businesses of all sizes, Mount Workplace provides requisition, procurement, and spend management software. The software is well-known for assisting businesses in making purchasing decisions, lowering processing costs, and ensuring procurement process efficiency. Furthermore, Paramount Workplace enables small-to-large businesses to increase mobile and web procurement.
The software is ideal for businesses that handle travel expenses on a regular basis, and it includes a variety of spend management features to optimise travel and business expenses. It allows you to easily implement corporate spend management regulations, allowing you to quickly create, submit, and approve business expenses.
Tradogram is a robust, cloud-based business spend management solution that assists businesses of all sizes in implementing effective spend control strategies. It’s an all-in-one solution that combines six powerful modules: contract management; supplier management; strategic sourcing; order management; spend control; and purchase-to-pay. The solution is intended for business leaders who want to maintain complete control over their procurement process while learning about the future of spend management.
Tradogram’s impressive suite of spend control solutions distinguishes it as a spend management software. A budget planner is included in the suite, which allows businesses to control their finances and perform cost forecasting to identify potential savings opportunities. Furthermore, Tradogram makes it simple to create dynamic approval workflow systems that improve the company’s spending. Even better, the solution includes dependable spend analysis tools that make it simple to perform real-time cost tracking.
Precoro is a dependable spend management tool that assists you in keeping track of your expenses and procurement processes. The software, which is ideal for small to medium-sized businesses, provides a single, unified system for managing your procurement operations, from tracking orders and invoices to analysing costs and expenses.
Another advantage of using Precoro is that it automates your procurement workflows, which eliminates error-prone manual work. It allows you to create your own approval workflow, allowing you to deliver needed products and services to your business more quickly. Furthermore, Precoro allows you to coordinate purchasing processes and ensures that all aspects of your procurement are in order.
PayEm is a global spend and procurement platform that assists finance teams in centralizing and automating their processes. This comprehensive solution gives them complete control and transparency over their financial processes. PayEm can be used to manage corporate spending on a global scale, ensure that payments run smoothly, and empower employees to manage non-payroll spending. CEOs, CFOs, VPs of Finance, VPs of Procurement, controllers, accountants, bookkeepers, and employees are among those who use the software.
#20. Tipalti Approve
Tipalti Approve is a simple spend management tool that gives business and finance teams control and visibility over their expenses. It includes a plethora of customization tools for configuring procurement workflows for your organisation. You can also set up your own purchase order system, requisition processes, and procurement approvals.
Furthermore, Tipalti Approve modernises your vendor onboarding processes, allowing you to complete purchases and transactions more quickly. You can ensure a smoother and faster process for reviewing, verifying, and approving vendors by automating your vendor onboarding workflow.
SellerCloud is a powerful sales management software designed to assist mid-sized and large multi-channel merchants in selling everywhere. The solution, which boasts seamless integrations with more sales channels than other providers, enables merchants to establish a presence in virtually all leading marketplaces.
Furthermore, it provides a centralized platform for managing all aspects of merchandise flow, from purchase to delivery. This way, every aspect of your business operation, from pricing to order processing to warehouse and shipping, is done efficiently and conveniently for the benefit of both the company and the customer. The integration of all interconnected activities improves the company’s spending control and boosts the bottom line.
#22. SAP SRM
SAP Supplier Relationship Management (SRM) is a web-based procurement software that is intended to speed up the Procure-to-Pay process. SAP SRM enables businesses of all sizes to purchase a variety of goods, including direct and indirect materials, as well as services. Businesses can use the solution to streamline and automate purchasing in order to reduce supply costs while maintaining high-quality output.
It helps to know what you’re looking for when selecting a spend management solution. If you’re a freelancer or a small business owner, you’ll want something simple and straightforward. If you’re a growing company or a large corporation, you’ll probably want something a little more comprehensive, with enough flexibility to meet your needs.
Whatever you decide, it’s time to start thinking about business spend management. Not only will you save a lot of time and effort, but you’ll also have a better idea of where your money is going.