top of page

What is Spend Management Software?

What is spend management software?

Keeping track of expenses and managing budgets effectively is crucial for success. Spend Management Software (SMS) plays a pivotal role in helping organizations control and optimize their spending. In this blog post, we'll explore what Spend Management Software is, what it is designed to do, who might use it, and how it is deployed, all in simple terms.

What is Spend Management Software?

Spend Management Software is a type of technology designed to help organizations monitor, manage, and control their expenses. It provides tools to track spending across various departments, analyze spending patterns, and ensure that budgets are adhered to. The ultimate goal is to improve financial efficiency and reduce unnecessary costs.

Other Terms for Spend Management Software

Spend Management Software is often referred to by different names depending on its specific features and focus areas. It is also called different terms by the vendors in order to differentiate their solutions.

Some of these terms include Expense Management Software, Procurement Software, Expense Reporting Software, and Financial Management Software. While these terms might emphasize different aspects of managing expenses, they generally fall under the broader umbrella of Spend Management, aimed at optimizing how organizations handle their expenditures.

What is SMS Designed to Do?

The primary functions of Spend Management Software include:

  • Expense Tracking: SMS allows organizations to track expenses in real-time, ensuring that all expenditures are recorded accurately.

  • Budget Management: It helps set and manage budgets for different departments and projects, ensuring that spending stays within approved limits.

  • Invoice Management: The software streamlines the process of receiving, approving, and paying invoices, reducing manual work and errors.

  • Procurement Management: SMS provides tools to manage the procurement process, from purchase orders to supplier management, ensuring that purchases are made efficiently and cost-effectively.

  • Reporting and Analytics: It offers detailed reports and analytics on spending patterns, helping organizations identify areas where they can save money and optimize spending.

  • Compliance and Control: The software ensures that all spending adheres to company policies and regulatory requirements, reducing the risk of fraud and non-compliance.

Who Might Use SMS?

Spend Management Software is useful for a variety of users across different sectors, including:

  • Businesses: Companies of all sizes use SMS to manage their expenses, control costs, and improve financial performance.

  • Healthcare Providers: Medical institutions use SMS to manage their operational expenses, procurement of medical supplies, and ensure compliance with healthcare regulations.

  • Educational Institutions: Schools and universities use SMS to manage their budgets, track expenses, and optimize spending on educational resources.

  • Government Agencies: Public sector organizations use SMS to ensure taxpayer money is spent efficiently and transparently.

  • Nonprofits: These organizations leverage SMS to manage their funds effectively, ensuring that donations are used appropriately and operational costs are minimized.

Leading Players in Spend Management Software

Several technology vendors lead the Spend Management Software space, offering robust and innovative solutions. The following companies or divisions of major vendors are good examples, but by no means the only vendors operating in this area:

  • Overview: SAP Ariba offers comprehensive spend management solutions covering procurement, invoicing, and expense management.

  • Key Features: Integrated procurement, supplier management, spend analysis, and compliance tracking.

  • Overview: Coupa provides a cloud-based platform for managing all aspects of business spend, from procurement to invoicing and expenses.

  • Key Features: Real-time spend visibility, automated workflows, robust analytics, and mobile accessibility.

  • Overview: Oracle offers a suite of procurement solutions as part of its broader cloud services, focusing on streamlining procurement and spend management.

  • Key Features: Comprehensive procurement management, supplier collaboration, spend analysis, and compliance management.

  • Overview: Ivalua provides a unified platform for managing procurement, sourcing, and spend, offering flexibility and customization.

  • Key Features: Supplier management, procurement automation, spend analysis, and contract management.

  • Overview: Basware offers a range of solutions for procurement, invoicing, and spend management, focusing on transparency and efficiency.

  • Key Features: E-procurement, AP automation, spend visibility, and compliance tools.

  • Overview: Jaggaer provides spend management solutions with a focus on procurement, supplier management, and analytics.

  • Key Features: E-procurement, supplier management, spend analytics, and inventory management.

Finding Finance Technology

If you are looking for new ideas for your finance department, or if you are looking to buy a spend management platform, Viewpoint Analysis might be able to help you.

If you are looking for ideas and inspiration, our Finance Technology Matchmaker brings a host of finance technology vendors or spend management vendors to your door. It's a great way to quickly assess the options in the market.

For those who already have a shortlist of options and want to run a quick selection process, our Rapid RFP (RRFP) is the quickest selection process on the market - finding your ideal partner in a matter of weeks.


Spend Management Software is a vital tool for organizations aiming to optimize their spending and improve financial efficiency. By understanding its functions, benefits, and deployment options, even non-technical users can appreciate how SMS enhances expense management and drives cost savings. Whether you're a business owner, healthcare provider, government official, or part of a non-profit, SMS can help you manage your expenses effectively and achieve your financial goals.


bottom of page