As teams adopt more and more software tools, you can imagine how often auto-renewal payments get mixed in with other charges on your corporate cards and go unnoticed.
A recent study found that most companies spend approximately $10,000 per employee per year on software subscriptions. 😯 With this amount of money being paid out to vendors on an annual basis, there’s a huge risk of missing questionable charges, hidden fees, or price increases.
Pro tip: Looking at a list of your subscriptions is one of the best places to find cost savings! 💲
As a best practice, we recommend reviewing big ticket vendors and purchases regularly. Start by doing the following:
👍🏼 Ensure tools and platforms are being used
👀 Look for ways to control costs
💵 Set a budget and stick with it
Let’s go over how to review your current subscriptions to help you achieve greater accountability, transparency, and autonomy over company spending.
Step 1: Make a list of your subscriptions ✏️
- Make a list of all of your subscriptions and update it throughout the year
- Be sure to include the name of the tool, the cost, plan type, and payment frequency
Step 2: Assign an owner 👨🏾💻
- Distribute your list to your Department Leads or Managers
- Have them assign an owner to each tool
- This person will be responsible for managing users, monitoring payments, etc
Step 3: Audit your current subscriptions ❌
- Identify which tools are still in use and/or determine if there are cheaper options available
- Cancel any subscriptions that are not adding value to your business
Step 4: Set up a virtual card by vendor 💳
- To make subscription payments easier, Float allows you to set up an unlimited number of virtual cards for your vendors, which allows you to:
- Assign daily, weekly, monthly, and yearly card limits
- Instantly pause or cancel cards
- Request and approve card top-ups
- Automatically capture receipts and match to transactions
- Track spending in real time
Step 5: Successfully manage your subscription spending 🤑
- Take the list you created in Step 1 and easily move spending over to Float by assigning the person you identified in Step 2 as the cardowner
- Your finance team can monitor spending by looking at individual card transactions, or filtering by vendor on the Transactions page
Subscribe to Float’s management method 👀
There’s no doubt that we all love subscriptions – shoutout to Netflix! 🍿 When it comes to your business, they serve as a convenient way to pay for some pretty cool tools that support your day-to-day operations. But we also recognize that it can become overwhelming to manage these expenses at times. Luckily, Float’s virtual corporate cards can help. By assigning a virtual card per vendor, you’ll be able to stay on top of your monthly purchases and save money along the way. 🤩
To learn more about our smart spend software and how we can help you improve the way you manage your company’s subscriptions, book a demo with us today! Our team is happy to walk you through all of our incredible features.