Software-as-a-Service eCommerce providers have inadequate management over and visibility of their non-payroll spending. It leads to slow progress, errors, and losses. A survey revealed that 62% of CRM (Customer Resource Management) firms use a system for this. Yet, considering SaaS firms, only 32% of them own such a system.
The firms that do not have a system to manage non-payroll spending are attempting to acquire one. Airbase and PYMNTS arranged a collaboration. They assessed 225 knowledgeable executives at SaaS firms. The study took place between 18th May and 6th June 2022.
Their result was ‘Improving Financial Performance: How SaaS Firms Manage Non-Payroll Spend’. The study outlined the benefits of a non-payroll cost management system.
The survey also concluded that most eCommerce companies use a spend management system. CRM and Project Management firms are in the lead, with around 95% of them using a system. Still, 90% of all firms need a clear idea of their non-payroll spending and complete control over it.
Solving the issues will reduce 11% of the financial losses of the firms. Additionally, Web Hosting firms can save more than the average values. They will reduce their losses by up to 15%.
Despite the popularity of a spend management system, CRM firms need more knowledge. They also need better control over the non-payroll spending before processing it. It is not possible yet, due to the complexities of manual analysis.
AP (Accounts Payable) teams spend 18% of their time on manual tasks. It includes non-payroll payment management in eCommerce. 22% of all firms face visibility issues due to manual processing. SaaS firms are the most vulnerable to it.
Web Hosting AP teams spend 36% of their time taking care of non-payroll spending. As a result, 40% of these companies brought up issues with processing.
The report outlines these points. It solidifies why eCommerce firms need a non-payroll management system. It will overcome significant issues with the workforce and finances.