How SaaS subscriptions can burn the corporate card
In the past, software purchases were generally one-time payments. You paid a certain one-time amount, bought a big package of CD-ROMs or floppy disks, and you were done for your life.
On the other hand, big organizations had to even make some software from scratch, specifically for themselves. With different servers, this was a considerable load on the organization in terms of capital, time, and human resource.
But this was long back and now SaaS companies have changed the entire scene at the battleground. Now you can find precisely curated software, to serve your specific needs. Also, the software procurement process for companies is more dynamic these days. The payment structure for these subscriptions are recurring type, which is great considering you pay in pieces and in a timely manner, as per the requirement of your workforce.
However, this payment module can also become quite complex when you have a large workforce and you need more subscriptions. The rapid growth of companies in the past decade has made them shift towards billing automation for all their software subscriptions.
Today there are effective solutions that are helping companies manage their software subscription process more accurately and easily, and also allowing you to save on them.
But as discussed above, each exciting software tool can become unmanageable if you are considering scaling it to a large workforce.
Today, companies run on a fuel called software. At any point in time, there are tens of software that a company uses to sustain its operations. Generally, companies procure these software on a timely basis and pay till they require it. AWS, slack, intercom, Hubspot, etc. are all examples of SaaS.
SaaS subscription management Managing software subscriptions
for a company involves putting guidelines and processes in hand to track all the subscriptions, including active, inactive, and past subscription payments. It also involves, tracking their integration with other tools and their combined payments.
Signing up for a software today can be done in seconds, and employees can sign up on the company's cost on unnecessary software too. There could also be a situation, generally with a large number of employees that the company would have already paid for a software subscription, but the employee unknowingly or knowingly signs up and pays for the subscription again from the company card.
Therefore, companies end up struggling to get a clear idea of the software tools they use, who manages them, and how much exactly they are paying for their subscriptions.
Usually, the payments for these software subscriptions are made via a single corporate card. For small businesses, that require not more than a couple of software, there is not anything negative in this, but as they grow and scale, the number of software services that they require also increases simultaneously. Plus the number of subscriptions they need to take for a particular software also increases in resonance with the number of employees in the company. At this point in time, using a single corporate card for managing and completing all the SaaS subscriptions is not optimal and scalable. Apart from the risk associated with this, the mismanagement with such practices can also be considerable. Above all, if that card gets compromised thousands of payments can fail at an instance.
There are significant security issues also while using a single corporate card for various SaaS subscription payments. But the procurement teams definitely don't want to foil the innovation and work-ease that comes with these amazing tools.
For the procurement team, they need a stable and secure way to purchase and monitor these software subscriptions.
SaaS subscription platform and billing
With SaaS management features of a versatile expense management software, you can add another dimension of ease and security by managing all your SaaS payments on a single dashboard. The IT and procurement teams can view and administer all SaaS and cloud service payments, from past and current, on a single dashboard.
This also allows the administering teams to work together with the employees and figure out and expose if there are any unused applications or if for the same software subscriptions you have been paying twice.
Having a stronghold and insights on this SaaS payment data can enable you to optimize your payments and cutting down your operational costs. Especially, if you are reading this in 2020, also known as the pandemic era, businesses are trying hard to cut down their operational costs. Corporates have even gone dangerously far by slashing the salaries of their employees, whilst their quests for various methods to cut operational costs continues. But there are hidden costs in an office that are so shadowed, that forget to think about their reduction, it is even hard to detect these loopholes. SaaS payments notoriously being at the, top concerning these hidden costs.
This is why it is critical and crucial to have a system in place to address this major corporate issue. Rapid success also comes in accordance with rapid manoeuvres. So it's time that you need to look upon solutions that can help you to find these spending loopholes and hidden costs and eradicate them all at once!
VIRTUAL CARDS FOR SOFTWARE SUBSCRIPTIONS
With an expense management software, you get extra flexibility to create virtual payment cards for all your SaaS subscriptions. You can also assign separate virtual cards for specific payments. Plus, you can set recurring payments for your SaaS subscriptions. Implementing an expense management solution can help you to track all the payment data relating to all your software tools subscriptions, thus providing you with the all the spending data that could further help you to reduce your organizational costs by figuring out if there had been some unnecessary payments for you. And it's always easy and suggested to not rely on a single card for all your payments. You can create as many burner cards as you want and freeze them anytime. It's like customizing your online payments to an extent like never before! Further, the expense management software can also notify you if you are paying for any unnecessary software, or if you are paying for two similar software that are serving the same purpose. This ability of expense automation, apart from saving you a considerable amount of time, also help you save money.
To sum up, an expense management software is your one-stop solution to end all your miseries related to handing your SaaS subscription payments. It enables you to:
- Monitor all your SaaS payments in real-time: You get complete visibility over where, why, and what your business has had been spending for subscriptions.
- Set timely budgets on all your virtual cards: Load budgets as per the amount of the subscription and never pay anything extra. Set recurring payments on a monthly or yearly basis for recurring SaaS subscription payments.
- Fix loopholes: Eradicate all sloppy practices associated with handling subscription payments. Pay in a systematic manner that is easier to track and administer thus helping you in your accounting procedures.
Still not convinced to shift to automated expense management solutions, well, spreadsheets are always there and so are the loopholes!