Key takeaways
  • Recurring SaaS subscriptions can have hidden costs due to periodic spikes, unused seats and more.
  • SaaS spend optimization includes consolidating expenses on one corporate card to unify control and visibility.
  • Using virtual cards to manage SaaS spend makes it easier to ensure uninterrupted service.

SaaS spend management – understanding hidden costs

For innovation economy companies, Software-as-a-Service (SaaS) platforms are often essential to serve key business functions and a cloud infrastructure. You might need SaaS as you develop products, grow your workforce, and advance your sales and marketing efforts. Yet as you stack up subscriptions, SaaS expense management can be a top concern.

Consider a few common problems I’ve seen with clients. Cloud service usage can spike periodically, resulting in exorbitant charges that catch you off guard and may disrupt your cash flow.

Or what if a SaaS application is paid on a company card under someone’s name and they leave? Recurring autopay could fail, and the service gets discontinued. Similarly, if the card on file is compromised by fraud, you might have to scramble to add another payment method to avoid interrupted service.

With fast-growth companies, another issue is that staff turnover can result in empty SaaS seats. If you’re not tracking all your subscriptions, you might be paying for services you don’t need. Did you know that on average, $18 million is wasted on unused SaaS seats?

As we grow, it’s easy for SaaS spend to balloon out of control or to pay for services we’re not using anymore. Having an efficient way to track and manage this is important.
Co-founder and CEO, New Harbor (SVB Client)

Best practices for SaaS spend optimization

As you navigate growth, it’s crucial to have precise control over recurring spend, especially for SaaS that supports critical business needs. A great place to start is the corporate card you use, so here are a few best practices:

  1. Gain centralized control. If you’re using multiple cards to pay for subscriptions, consider consolidating payments using one corporate card solution that includes a robust expense management platform. You’ll gain a unified, real-time view to manage SaaS spend across all products and can centrally control how each gets paid.
  1. Increase control with virtual cards. Issue virtual cards for individual SaaS platforms, create categories for groups of subscriptions, or assign cards by department. You can set the budget, purpose and other controls, and modify or revoke cards on the fly.

Virtual cards also help you ensure uninterrupted service as they aren’t issued under anyone’s name. If you have staff turnover or a card number is compromised, it doesn’t affect your actual card account. You can simply assign a new virtual card to cover that SaaS spend.

  1. Automate reporting and reconciliation. Using virtual cards, the transaction data is automatically reported in the platform. No need to manually input details to reconcile expenses. You can even import invoices and the system will file them for you. And all your card activity seamlessly syncs to your accounting software or ERP.

Optimizing SaaS spend management is all about simplifying processes so your finance team (and everyone else) can stay focused on your innovation journey. An SVB corporate card solution makes it possible and helps you stay on track for growth.