5 Ways to Optimize SaaS Spend For Your Business

Apps you use on a daily basis, such as Google Drive, Docs, Dropbox, HubSpot are all part of the SaaS category. SaaS stands for Software as a Service and refers to a subscription-based model where service-providing software can be accessed using external servers.

The rise of cloud computing has helped in the growth of SaaS a lot, since software is stored on external servers. Users often need only a web browser to access the software since there is no installation needed.

SaaS subscriptions often cost less than businesses having to purchase a number of software licenses for their employees. But, the recurring costs can often add up to be much more than expected. On average, a company spends $5700 on SaaS for every employee.

So, there is a need to ensure that the SaaS spend for a company is regulated and that all costs are accounted for. This ensures that there are little to no unexpected losses involved when the financial reports are generated at the end of the term.

With that in mind, here are five efficient ways to help you manage your SaaS spend better and reduce the likelihood of unexpected costs.

1. Make an Inventory List of Apps Used

The first step to effectively managing SaaS spend for your company is ensuring that you have drawn up a list of apps needed. Then, you should be able to see how much is being spent on these apps at a team and employee level. If employees across departments can share accounts, it becomes much more convenient for businesses to reduce costs. 

This way, you don’t have to add multiple licenses for employees since they are all using the same account to use the SaaS app.

2. See How Many Apps Your Teams Actually Use 

Once you have drawn up a list of apps that have been subscribed to, it is time to see how many apps are actually being used. One great way of ensuring that these apps are helping your employees is establishing a review system. Are the apps aiding your employees regularly? How many of them actually use the app for their work? Do they need the service for a short or long period?

Answering all these questions will help you gain insight into the true value that the SaaS app brings to your business. Upon evaluation, you should identify how many user accounts are needed, and then pay for them accordingly.

3. Set Budgets For Your Teams 

You can allocate budgets and create spend policies for different teams in your business. One great way to manage SaaS subscriptions is to designate the subscription responsibilities to team leaders and managers. Having teams operate under a set budget also ensures that company funds are managed effectively.

If teams go over budget, they can also be asked to ask for approval from higher authorities to approve their purchases. 

4. Look For Ways to Optimize Spending on SaaS Apps 

Since these apps are subscription-based, they offer discounts if you purchase a license for a certain amount of time. Taking advantage of such offers is a great way to save money on SaaS subscriptions and ensure that your company funds are as efficiently managed as possible. Looking out for rewards given by your card company is also an effective solution to reduce your spending.

5. Review Your SaaS Spend Periodically 

Once you have drawn up a clear report of how your company spending on SaaS looks like, it is important that you review the expenditure report. Here are some basic questions that can help you in your review process:

  • Where can costs be reduced? 
  • Is the software actually benefiting the employees? 
  • Is there a better, more cost-efficient alternative on the market?
  • Can the software be purchased at a better price if you avail discount offers?

Objectively answering these questions and efficiently managing your expenditure will lead to an optimized SaaS spend model.

Conclusion 

SaaS apps can be very beneficial for your employees if they are regularly using it for their work. But, they can also pose extra costs to businesses in the long run. And this is why it is vital to ensure that these costs are managed like all other aspects of business operations. 

Managing SaaS spends is often a very laborious procedure to do manually. Thankfully, Mesh Payments’ SaaS Spend Management system can deliver a detailed report of your SaaS Spends on a regular basis. So, consider choosing an effective spend management tool to optimize your SaaS spends today. 

Manage Your Payments With Full Control
& Visibility

Get Started
The Future is Cardless
Manage Your Payments With Full Control & Visibility