How to stay on top of your company’s software subscriptions
Business subscriptions should make life easier, right? It means you never run out of teabags or those reception magazines that nobody reads. And increasingly, it means that your team’s software needs are met with a minimum of fuss and upfront cost.
More and more employees need a wide range of tech to work effectively, whether that’s basic communication systems or job-specific tools. It’s easy to sign up for most Software as a Service (SaaS) tools, and easy to deactivate profiles or swap users. It’s empowering for both leaders and their teams, as productivity goes up and a spirit of innovation is fostered.
But for financial teams, it can be a lot less fun.
Exactly who’s signed up for which tool and how much it costs the company is difficult to monitor. 71% of companies have at least one SaaS subscription with no billing owner, according to a study.
How much are your business subscriptions costing you?
New research shows that — across companies of all sizes — business spending on subscription services is likely to continue to grow. According Enterprise Apps Today, the SaaS end-user spending value has gone up from $31.4 billion to $171.9 billion (around £28.4 to £155.8 billion) between 2015-2022.
As of 2018, the average spend on subscription services per company reached $343,000 (around £274,000) in the US. That averages out to just under $2,900 (around £2,320) per employee, per year, spent solely on subscription services.
Depending on the job they do, employees might be using dozens of different SaaS tools to work effectively, and the rise of remote working is likely to see this increase even further.
But with new business subscriptions being adopted daily, things can easily spiral out of control.
And that’s just the subs that are maintained.
Rogue subscriptions cause real problems
Other subscriptions exist in a no man’s land after the original owner leaves a company. Be honest: how many times have you discovered a former employee’s name still registered as the owner of a subscription? Somebody’s paying for that subscription – but who? How much is it costing the company every month?
Oh, and it gets worse. If your SaaS spend has gotten out of control, your enterprise valuation (EBITDA) will be affected. An inflated SaaS spend that’s bloating your operating costs will impact how potential buyers see your business.
So the pressure’s on financial managers and CFOs to manage these growing costs in the right way.
One answer? Automate company spending
In traditional workplaces, the IT department has full ownership over any new software that’s introduced. This centralised approach means that adopting a new tool can be a long, tedious and not-at-all transparent process.
One of the best ways to manage the rising number of subscription-based services is through an automated spending solution like Pleo.
We unify your entire expense process, making the whole thing faster, easier and more transparent.
No more duplicate subscriptions? Sounds good
We’ve got a pretty tall tech stack ourselves, so we get the importance of having all of those recurring payments in one place.
That’s why there’s the Subscriptions Overview.
It’ll empower your people to sign up for the tools they need, while admins get a full overview of every subscription. No more duplicate sign-ups that needlessly lose you money every month, or subscriptions that you still pay for – even though nobody uses them.
The other ways Pleo makes subscriptions easier to manage
Here’s how switching to an automated spending solution can help you make sense of all those sign-ups and SaaS payments.
Easy-to-manage payment cards for employees
The primary benefit that an automated expensing solution provides for business subscription management is company cards. These cards can be pre-loaded and set with custom spending limits before being given to your employees which gives you full oversight of who is signing up to what subscriptions and how much for.
This empowers your staff to make purchases without ever needing to be reimbursed. It also keeps your financial team in control of your business spending. And if someone leaves the organisation, your finance team can end or reallocate their payments easily.
Real-time financial overview
The wasted spend on forgotten subscriptions can be tackled with more real-time monitoring of business spend, something Pleo offers from your first use.
Invoice matching and account integrations
Every finance manager knows just how painful and time-consuming it can be to match invoices to company card payments. With an automated solution such as Pleo, categorisation and spend matching occurs automatically as your employees pay.
Everything is connected with your accounting software – so no more repetitive manual reconciliation.
Subscriptions are changing the way businesses run; the time is probably right to get on top of how you pay for them.
Want more tips and tricks on how to make smarter spending decisions?
Don't miss other articles in this series
Keeping an eye on your outgoings and users’ activity is a sure fire way to stay in control of company finances and plan for the future.
By taking a few seconds to record the correct categories and add any essential notes, you can make the most of one of Pleo’s most useful fea...
Motivate and build trust in your team without sacrificing control or visibility with spending limits.