Spend management is the processing, analyzing, and controlling of company non-payroll expenses, designed to reduce costs, increase profits, and improve efficiency.
The vast data collecting, cleansing, classifying, and evaluating offers better control and perspective on company spending, which paves the way to forward-thinking strategies and growth opportunities.
In businesses of all sizes and sectors, and especially startups and fast-growing companies, expansion equals more expenses, which require higher volumes of control and analysis. Without spend management, it’s easy to miss opportunities and overlook problems.
Managing spend is essentially painting the big picture. A centralized repository of cleansed and classified spend data at a company-wide level, produces a comprehensive view on inefficiencies, saving opportunities, and resource allocation options.
Here’s where spend management strategy comes in. To achieve the objectives of optimizing efficiency, improving profits, and reaching full potential, a strategic plan sets policies and implements controls on company expenditure.
Advanced Spend Management Technologies
Traditionally, managing spend demands a substantial amount of manual work, which entails major challenges in accuracy, efficiency, and time-management. Here’s why:
- The human factor - Manual reporting and processing inevitably suffers from inconsistencies and discrepancies
- Silos mentality - Lack of communication between different departments, each with its own internal goals and rules, proves difficult to centralize and prone to duplicated expenses
Thankfully, technical advances in the finance industry provide a solution for a lot of these problems. Smart spend management platforms turn a challenging and tedious process into an easy, effective, and time-efficient system.
The benefits of advanced platforms involve every part of the financial chain - management, finance teams, and employees, in every step of the process - data collection, analysis, control setting, and execution.
- Generates reliable and precise data
- Simplifies reporting and auditing
- Streamlines funding requests and approvals
Transparency and Visibility
- Deliver real-time data
- Enable insights into performance and operations
- Ensures compliance with preset policies
- Streamlines workflows
- Improves risk management
The Bottom Line
The better a company spends, the more efficient it becomes, and that is what makes spend management invaluable to financial success.
PayEm offers a powerful spend management platform using advanced automation technology.
Keren A. Rosenfeld