As explored in the first part of this series, business use of subscription services (specifically SaaS) is becoming increasingly popular. It’s easy to see why. These tools enable businesses to securely scale up operations across a range of different business functions.
However, subscriptions aren’t without its downsides. The most notable issues being a lack of control and visibility on spend.
In this accompanying piece, we take a deep dive into how finance teams can use Soldo (or a similar tool) to create a single subscription management wallet or ring-fence subscription funds separately within departmental budgets. Ring-fencing funds provide a more granular layer of visibility that’s likely to be more suitable for larger or more complex organisations.
Applying one of these two approaches lets employees complete necessary subscription purchases. At the same time, it lets while CFOs get better visibility and optimise spends.
Using a spend management software is a simple way to create a dedicated wallet for subscription management. Especially for businesses with flat structures and just one team (like IT) who manages their subscriptions.
This consists of the following steps:
Ring fencing funds is suitable for larger companies with a more complex approach to budgeting. Particularly budgeting based on departmental lines. For example, departmental budgets may consist of a breakdown of spend categories types rather than a set value across all transactions.
Ringfencing subscriptions funds consists of the following:
With the popularity of subscriptions likely to increase further, organisations should implement a subscription management strategy to control spend and give finance teams access to real-time data.
Soldo’s flexibility allows new and growing organisations to put bespoke subscription management solutions in place to suit their needs. Doing so will also free up significant time and remove bureaucracy and friction between finance teams and other departments.
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