As businesses continue to grow in size and complexity, managing spending becomes an increasingly challenging task. With many departments approving purchases, receipts flying around in disarray and duplicate spending lurking around every corner, traditional systems just cannot keep up. This is where business spend management software steps in to bring order and oversight to company finances.
Centralized Spending Approval and Tracking
One of the key functions of spend management software iscentralizing the approval and tracking of all company spending. By setting approval workflows and spend limits per department, the software ensures purchases adhere to budget and policy guidelines. Employees submit spending requests through a digital portal which routes to the proper approvers. Approvals can quickly be granted, and the full transaction history is accessible anytime.
Receiving and coding is simplified through digital receipt capturing. Employees simply photograph receipts on their mobile devices which are automatically matched to the original spend request. Accounting staff no longer spend hours sorting through paper receipts, and can easily assign codes to ensure expenses populate the right general ledger accounts.
Duplicate Spending Prevention
Preventing wasteful duplicate spending is another major benefit. Business Spend Management Software platforms integrate supplier and contract information to check for existing rates or agreements before new purchases are made. If another department is already using a particular vendor, additional orders can leverage those negotiated terms to save money. Powerful reporting and analytics uncover patterns of duplicate or maverick spending so remedial action can be taken.
Clearly, business spend management software delivers compelling advantages for gaining oversight, enhancing control and driving savings from procurement activities. With configurable workflows to enforce governance, visibility into spending patterns and approvals built-in, these solutions bring much needed discipline and optimization to company finances. As spend grows ever more complex, leveraging specialized technology is absolutely essential for aligning spending with strategic business objectives. Implementing the right spend management platform sets businesses up for ongoing purchasing efficiency and competitive advantage through optimized cost management.
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