Business man touching the word data managementYou probably spend the bulk of your days brainstorming ways to increase your revenue and expand your business. But sometimes, you don’t give much thought to minimizing spending and its implications to your bottom line.

Along with expansion comes waste or unnecessary costs, particularly software licenses and various SaaS services and products, if you’re not careful. While pinpointing the source of SaaS-related unnecessary costs can be difficult, below are some tips to help you monitor your SaaS costs.

Ask the Most Important Questions

Do you really need this SaaS product? If you stopped using it, how would it affect your operations? If the user can’t convince you or the team about the product’s value, might as well spend your resources on something else.

Encourage Innovation to a Certain Extent

Start by making it clear that you’re on board with using secure SaaS products to improve your business operations. Make sure that your team knows how to buy SaaS products, perhaps by creating guidelines regarding the most basic terms and factors to consider.

Monitor Key Things

These include point persons (in your team or vendor), costs drivers (contacts, data, licenses/users, etc.), frequency of payments, and payment methods (credit card statements, invoices), as well as terms of agreements and renewal dates.

Make a List

While it might take some time and digging, especially if you have a big organization, it will benefit everyone. Your team will appreciate the effort, especially when it is time to locate important details about your SaaS products and vendors.

Set Up Reminders

Once you have managed to organize everything, you can set up reminders or notifications in advance to help your team in managing SaaS vendors, renewals, and costs. Once a team member receives a reminder about a SaaS product he’s using, he must review his usage, evaluate the effects of using vs. not using the product, and depending on his evaluation, renew the contract. This way, you’ll feel more secure knowing that your SaaS costs are always justified.

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Managing SaaS vendors and monitoring related costs should be a team effort, one that requires transparency, constant collaboration, and tools to make sure you’re using your resources well. Remember these tips to safeguard your bottom line from unnecessary costs and unexpected renewals.