3 signs your spend management software isn't working

Introduction 

Many companies put up with ineffective spend management software, unaware of how much it’s costing them.  

Not you. Maybe you’re starting to realise that the difference between business success and failure is, often, is as simple as knowing where your company’s money is going.  

Or maybe it’s because your current spend management software isn’t giving you the visibility and control you need. The company credit cards you give your teams that were supposed to give you flexibility now create reconciliation headaches. The reimbursement process that was supposed to help you recoup lost costs now drains your time and resources. The manual reconciliations that once helped you keep accurate records now slow down your month-end close. 

Or maybe you’re not sure how to make things meaningfully better. Even if there were targeted solutions for the specific problems you’re tackling (and there are many options on the market right now), you’re not sure if they can help you address big-picture problems – like controlling spend without adding more admin, making sure teams can pay for what they need without delays, and getting real-time visibility into where company money is going. 

Want more confirmation that your spend management software isn’t solving your biggest challenges?  

Here’s what to look for. 

Section 1 – How ineffective spend management software fails your business 

Sign 1 

#1 You’re only looking at the past.  

The past is a good indicator of the future. But when you’re spending most of your time reacting to weeks-old information from banks, you’re not staying ahead. You’re running late. You’re busy responding to the past when you want to prepare for the future – for growth, resilience, and innovation. 

Did you know: Companies that use real-time data can see as much as 358% ROI over 3 years? The right spend management software gives you real-time tracking tools, reducing reliance on outdated bank data and helping you plan well in advance of key deadlines. 

Sign 2 

#2 Every step in your spend management process in manual.  

Even the least valuable steps. Collecting, scanning, and submitting receipts. Checking policy compliance. Tracking expenses. They’re not the most fulfilling tasks for your finance team. They also don’t add much more value than just ticking boxes. 

Start small with automation. For example, setting up rules in your accounting software to auto-categorise expenses can reduce manual entry errors and save your team hours each week. 

Sign 3 

#3 Change is painful.  

If your procurement teams need to source new goods and services for a project, it’s a multi-step process that involves approvals, paperwork, and a slow turnaround time. By the end of it, the opportunity is lost to delays or inefficiencies. If a trusted employee spots a new opportunity, they have to navigate layers of red tape. Jumping on new opportunities and thinking outside the box becomes impossible.  

Implement clear spending policies that empower employees to make small purchases within pre-set limits – without requiring excessive approvals. 

Section 2 – Why existing spend management solutions fail 

Most spend management solutions target the biggest chunk of company spend: the strategic purchases.  

Strategic spend is planned and controlled. It’s the cost that’s tied closely to a company’s core objectives. For a manufacturer, that might be raw materials or production equipment. Making a strategic purchase involves a small number of suppliers. Think long-term contracts with key vendors. It’s structured and falls neatly into defined procurement processes. 

Non-strategic spend, on the other hand, is harder to explain. It’s the lifeblood of your company’s spending – the costs a business incurs just to run. 

Commissions. Benefits. Office rent. Payroll taxes. Salespeople travelling. A booth at a tradeshow. 

Those costs happen every day, at different ends of the company, with a large range of loosely connected suppliers.  

Existing spend management solutions fail because they’re not built to manage decentralised, day-to-day spending. They’re built to handle big-ticket, structured procurement. But when you’re trying to control and optimise everyday business expenses, that doesn’t address the real problem. 

Section 3 – What effective spend management looks like 

It starts with three key principles:   

• Real-time visibility: Instead of reacting to past transactions, you need a system that lets you see and control spending as it happens. That way, you’re not playing catch-up. You’re taking a proactive approach to financial planning instead.  

• Tip: Set up automated alerts for high-value transactions or budget overruns to catch issues early. 

• Automation over admin: Reducing manual tasks like receipt collection, policy enforcement, and reconciliations frees up finance teams to focus on strategy. The right solution can save you as much as 62% on expense claims. 

• Tip: Use a spend management tool that auto-match receipts with transactions to eliminate expense report bottlenecks. 

• Flexibility without chaos: Employees need access to company funds to do their jobs, but that access should come with guardrails that prevent overspending and ensure compliance. Spending freedom without a free-for-all.  

• Try: Set spend limits by category (e.g., travel, office supplies) rather than micromanaging individual transactions. 

With those principles in place, spend management becomes easier because you’re no longer relying on slow, manual processes to control company money. No more missed opportunities. No more wasteful spending or poorly negotiated deals with suppliers.  

Just more order, efficiency, and agility.