In the modern business world, spend management has evolved from a tedious task involving physical receipts and complex spreadsheets to a streamlined process powered by technology.
With a multitude of platforms available, it’s essential to understand the basics of spend management and why it’s crucial in today’s uncertain economic climate.
The Importance of Spend Management
Spend management is the practice of managing all business expenditures over a specific period. This includes everything from team budgets, individual business expenses, subscriptions, suppliers, and company cards, to travel logistics. With the rise of businesses operating internationally, managing these expenses can be a daunting task. However, with the advent of digital solutions like Revolut Business, all these can be managed in one place, making the process less complex and more efficient.
How to Effectively Manage Your Business Costs
Managing your business costs doesn’t have to be a daunting task. Here are some practical ways to manage your business spending more effectively:
Streamlining Reimbursement of Business Expenses
Instead of having your employees pay for business expenses and then reimbursing them, consider switching to company cards. This not only saves time but also ensures your team members are not temporarily out of pocket. With spend management solutions, you can issue cards to each team member who needs to spend, and each card can have its own spending limit or dedicated controls attached to it.
Managing Subscriptions and Repeat Purchases
Virtual cards are especially useful for managing subscriptions and repeat purchases. You can assign specific categories or subscription companies to certain cards, making expense tracking easier. Digital invoices from your suppliers can be forwarded directly via email to be automatically processed.
Issuing Cards for Large Teams Spend Management
Issuing cards to a large team can be challenging, but spend management platforms simplify the process. You can preset controls and limits based on factors like seniority, region, currencies, and spending category.
Managing Project Budgets
You can manage project budgets by setting up funding accounts for individual projects. Budgets are allocated to the accounts, and access to these accounts is determined by financial administrators and project leads. All spending is consolidated in one place and can be viewed alongside overall company spending analytics.
The Future of Spend Management Spend Management
Effective spending management goes beyond cost-cutting and reallocating funds. It involves streamlining processes and empowering employees with transparent spend management tools. Company cards combined with expense tracking offer greater time savings and transparency. For finance departments, real-time visibility into company spend and the ability to set limits and controls on cards are invaluable.
Revolut Business: Your Partner in Smart Spending
If you’re serious about smart spending, consider booking a demo with our Sales team. One of our experts will guide you on how you can tailor our tools to the needs of your business. All features mentioned above are available in all our global markets, covered by our business terms. Get a demo today.
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