Spend management software is designed to track and control business expenses unrelated to payroll, such as the cost of raw materials, components, marketing services, and subscriptions. By collecting and analyzing spending data, this software provides valuable insights into an organization's overall expenditure, helping businesses monitor and optimize costs. It plays a crucial role in preventing overspending and ensuring that expenses are accurately accounted for in financial reports. Primarily used by procurement teams for budgeting and monitoring company spend, spend management software is also valuable for accountants in financial reporting. It's important to distinguish spend management software from expense management software, which focuses on employee-initiated, often ad hoc, expenses like travel, lodging, and meals. Spend management software typically integrates with procurement systems and supply chain solutions, such as supply chain planning and sales & operations planning tools.
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