Non-payroll spend management software is useful in helping B2B Software-as-a-Service (SaaS) solutions providers install, track and control their spending.
It is considered a critical growth driver. Spend management systems are seeing more demand as SaaS firms recognize this.
Analyzing this in the study “Improving Financial Performance: The Speed of Spend Management System Adoption,” a PYMNTS and Airbase collaboration, we found nearly two-thirds of SaaS firms not now using automation for non-payroll spending are keen to adopt the technology. Larger firms and those providing content management systems (CMSs) are the most likely to use a non-payroll spend management system and are highly interested in utilizing one.
As the study states,
“SaaS firms that have not adopted non-payroll spend management software express interest in rectifying the oversight,” the study stated. “Eighty-four percent would be at least somewhat interested in using one, and 90% of these firms are at least somewhat willing to pay for it.”
While widespread interest in using such systems for spend management was uncovered, company size and operational complexity play key roles in the desire to add this component.
“Among SaaS firms that do not have a system, larger firms are more likely to be very or extremely interested in using a non-payroll spend management system than smaller firms, at 73% and 61%, respectively,” the study found. “Smaller firms, on the other hand, are more likely to be very or extremely willing to pay for an alternative system to manage all non-payroll spending than larger firms, at 75% and 65%, respectively.”
Simply put, the larger the firm, the greater the interest in non-payroll spend management software, but company size isn’t the only deciding factor.
The study stated that “while smaller firms are less apt to use an alternative system already or be very or extremely interested in using one, those that are at least somewhat interested also recognize the value of streamlining their spend management processes, given their willingness to pay for it.”
Broad Use Cases
Non-payroll spend management refers to the process of tracking, analyzing and controlling the expenses incurred by an organization that are not related to employee salaries and wages. This can include expenses such as office supplies, travel, marketing and other operational costs.
Effective non-payroll spend management helps organizations to optimize their budget and allocate resources more efficiently, reduce costs and improve financial performance. It can also help organizations to better understand their spending patterns and identify opportunities for cost savings.
Non-payroll spend management can be a critical component of an organization’s overall financial management strategy, as it helps to ensure that resources are being used effectively and efficiently to support the organization’s goals and objectives.
Non-payroll spend management software is widely used by organizations of all sizes to track, analyze and control non-payroll expenses. These tools can help organizations to automate the process of tracking and categorizing expenses, generating reports and identifying opportunities for cost savings.
There are many different types of non-payroll spend management software available, ranging from simple spreadsheet-based tools to more advanced, cloud-based platforms that offer a range of features and capabilities from numerous competitors.
Non-payroll spend management software can be particularly useful for organizations that have many employees or a high volume of expenses, as it can help to streamline the process of tracking and managing these costs. It can also be useful for organizations that operate in multiple locations or have employees who travel frequently, as it can help to ensure that expenses are accurately recorded and accounted for.
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