Running a successful startup at times calls for entrepreneurs to continually keep a close eye on expenses. And it might be so challenging to set enough time aside for that, honestly! Yet, even after generous funding rounds, businesses still rely on capital going strictly where it's intended and most beneficial to reach proper traction and growth. New businesses simply need to rely on rigorous expense tracking. That's why we hope our 10 tips to cut back on software expenses can help expedite SaaS app expense needs and get you right where you need subscriptions to be. This level of optimization is undoubtedly the first step on the right path.
To start, let's take a look at the most imminent challenges having to do with SaaS expense management, shall we?
What are the challenges of managing SaaS expenses?
SaaS (Software-as-a-Service) businesses have grown substantially in the last few years. That's so to the point that most companies use a large amount of SaaS applications every day. These services are used in different departments, and they're extremely helpful for companies.
On the other hand, some subscriptions can be as cheap as a few dollars per month. Or others can be as costly as thousands per year. Yet, a few of those seemingly uncostly apps, along with a small pick of the pricier ones, can add up to considerably large sums of money spent on a ton of different subscriptions. As more members and apps join the bunch, it gets harder and harder to stay on top of it all.
Furthermore, keeping an inventory of SaaS subscriptions is quite a hassle. Doing so implies knowing exactly which services we've hired and how much we're paying for which kind of them. It also entails knowing the precise dates payments are due along with dates on which subscriptions need to be renewed or updated, even upgraded or canceled. As apps get numerous and our teams grow, keeping track of these expenses can quickly get out of control.
As a whole, all of this can swiftly get to be too much to manage. And startups don't want to end up paying for services their teams aren't using. Nor do they want to be paying more for subscriptions that could be cheaper. These are only a few of the challenges we might face regarding a starting company's SaaS expenses.
And now that we've gone over the challenges around managing SaaS expenses let's take a look at the benefits of expense management software.
What are the benefits of expense management software?
Using expense management software can lead to great wins for a company. Money savings is an example of that. Companies can either get rid of subscriptions they're not using, which means no longer paying for those. Or they can find better deals for those subscriptions already in place.
Another benefit of expense management software is how it fosters new discovery of new SaaS apps. With Monthly, for example, users get smart suggestions on new apps that can be better for a business. According to those recommendations, companies can end up entirely replacing an existing stack altogether to, again, save money!
But there are specific actions we can take to ensure we cut back on software expenses. And we'll break those down for you at the end.
Why should we use expense management software?
There are different reasons to use expense management software. Some of those include optimization. And reaching that optimal level can mean removing duplicate licenses or removing apps you're no longer using. It can also entail tracking SaaS to determine which apps are currently underused in a company. We seek to understand if they're really needed or whether businesses can get rid of them. They can also be exchanged for more functional applications.
Another reason to use expense management software is being able to track user management. This is a great way to know which users are actually logging in to a specific app every month. And that helps know how many actual users are active on each subscription.
Ready to look into your own company needs for cutting back on expenses? We'll now deliver on our promise with our 10 pieces of advice to help companies cut back on costs.
Here are our 10 tips for cutting back on software expenses:
Get the best expense management software you can find. With Monthly as an app, for example, we know you'll be making the best of all SaaS expenses.
Listen to smart recommendations and explore other SaaS applications that could save money.
Delete orphan or duplicate apps.
Pay for the number of users who are actually using a team's SaaS applications, not more.
Compare the costs of paying per month, per user, annually, or any other option you have available. Do this for each of your subscriptions.
Take advantage of free trials when they're available. This helps ensure you're getting just the apps you really need.
Use data analytics. Rely on these to make the best decisions regarding the software for which you need to pay.
Beware of hidden fees. On this one, read the terms and conditions on all your contracts carefully, which we know can be nagging or hard to do. Yet, beware of auto-renewals. At times, merely avoiding automated fees can be a real money saver.
Delete applications that are no longer being used due to employee terminations. Put any costly apps on hold during extended sick or vacation leaves, as well. When apps are quite specific to a role, it might be worth pausing that user's subscriptions for a while. Think of cases such as when the person executing particular tasks for which you have an app will be away for extended maternity or sick leave, for example.
Map and categorize all of your expenses. And aim to do so very well to truly and better understand where funds are allocated. Check if you're putting the right amount of money in each area or whether these expenses could be better distributed.
Now, do you wonder which software will do all of this best? We've got a bit of a final word on that for you next.
What is the best expense tracking software?
Of course, here we'd like to recommend a newly launched Slidebean app. And we do so because we used all of our expertise running a venture-funded startup to develop Monthly. It's the best tool to track and manage all of your SaaS expenses. It was created to fulfill startups' exact need to manage tons of SaaS subscriptions in a single place and optimize how that budget is spent.
Of course, we took all needs related to a seed and Series A company stages into account to help those businesses get traction. Monthly was created thinking about CEOs and COOs, too. And the goal is to make it easier to keep control and oversight on a company's subscriptions, related expenses and optimize what's coming out of that type of usage. Check Monthly out to find out more!
Freelance and Remote Web Content Writer is the current hat under which Ang keeps on the global move. Writing blogs, website content and (especially) Facebook ads for diverse small businesses, entrepreneurs and international parties is part of the common work under Ang's belt. Otherwise, you'll see Ang riding a motorcycle on their vegan way out of theater rehearsal.