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June 11, 2026
Darren McMurtrie
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Darren McMurtrie

The SMB guide to SaaS spend management

SaaS spend compounds quietly. A tool gets trialled by one person, the card details go in, and the trial converts to paid without a conversation. Marketing signs up for something that engineering already uses. A vendor reprices and the new invoice is 40% higher than the last one. Nobody notices until the month-end reconciliation, and even then, the line item doesn't always tell you enough to act on it.

SaaS spend management is the practice of getting and keeping control of your software vendor costs: knowing what you're paying, to whom, under what terms, and when each commitment renews. For a company with 50 or more software subscriptions and no dedicated IT procurement function, it's less a discipline than a survival skill.

How SaaS sprawl actually happens

It doesn't happen because people make bad decisions. It happens because each decision, made in isolation, is reasonable. The sales team needs a dialler. The design team needs a prototyping tool. Someone in ops finds a tool that automates a recurring task and signs up with the company card. Each of these is a legitimate, low-cost decision. None of them feel like they need a formal process.

The problem is the accumulation. At 20 tools, someone roughly knows what exists. At 60, nobody does. The mental model that worked when the company had 15 people breaks down somewhere around 40, and by the time it's obviously broken, the vendor list has already compounded beyond what any spreadsheet can reliably track.

The other thing that happens at this stage is category fragmentation. Most ops leads can tell you roughly how much the company spends on software in total, pulled from a finance report. Fewer can tell you how much goes to project management tools specifically, or how many separate tools the company is paying for in that category. Without that level of visibility, duplicate spend is almost impossible to find, because the duplicates don't announce themselves.

What good SaaS spend management looks like

There are five questions a company should be able to answer without digging.

How much are we spending on software vendors in total, and how has that changed over the last 12 months? Not an estimate. A number, with a trend.

Which software subscriptions have auto-renewal clauses, and when do they renew? Not the renewal date. The notice period deadline, which is often 30 to 90 days earlier.

Do we have duplicate tools serving the same function? Two project management platforms, three video conferencing subscriptions, four different tools for customer surveys. This is more common than most companies realise.

Did any software spend increase significantly last month without a known reason? Token-based pricing on AI tools is making this harder to track. Bills vary month to month and there's no easy way to forecast them without visibility into usage.

Which software vendors are we paying without a current contract on file? A surprising number. When someone signs up via a self-serve flow, there's often no formal contract, which means no notice period, no documented terms, and no clear owner when the renewal comes around.

Most companies at the 50 to 200 person stage can answer one or two of these questions confidently. The rest require digging. That digging is the cost of not having a system.

The SaaS spend management landscape

The market has a pricing problem for mid-market buyers. The tools with the best capabilities are priced for enterprise IT teams, and the tools priced for smaller companies often lack the depth to be genuinely useful.

Vendr and Tropic are buying concierge services: they negotiate software contracts on your behalf and charge for that service, typically starting around $15,000 to $30,000 per year. They're not primarily visibility tools. They're useful if you have someone internally to manage the relationship and enough renewal volume to justify the cost.

Zylo and Productiv are enterprise SaaS management platforms. They offer usage analytics, licence optimisation, and access management at a level of depth that requires an IT team to operate. Pricing reflects that, usually $30,000 to $50,000 per year and up. Built for companies with 500 or more employees and a procurement function.

Sastrify sits in a similar bracket to Vendr, combining a software tool with a managed service layer. Again, useful at a certain scale. Not built for a 100-person company managing its own renewals.

The gap is companies that have a real SaaS spend problem, more than 40 software vendors, real exposure to auto-renewals and price increases, but no procurement team and no appetite to spend $20,000 per year finding out what they're already paying. For that profile, the right tool is one that connects to your accounting system, shows you what you're spending and on what, tracks your contracts, and alerts you before notice deadlines. That's the product category Ensurva is in.

How to audit your SaaS spend

You can do a reasonable first audit without a tool. It takes longer and it won't stay current, but it gives you a baseline.

Pull 12 months of payments from your accounting system grouped by payee. Filter for vendors that appear monthly or annually, which isolates subscriptions from one-off purchases. This is your working vendor list.

For each vendor above a threshold you set, say $200 per month or $2,000 per year, find the contract or sign-up confirmation. The goal is four data points: the renewal date, the notice period, whether auto-renewal applies, and who internally owns the relationship.

Cross-reference for duplicates. Group vendors by function: communication, project management, analytics, design, customer support, finance. If any function has more than two vendors and the company is under 100 people, that's worth scrutinising.

Build a 90-day renewal calendar from the notice period deadlines you've collected, not from the renewal dates themselves. A tool that renews on 1 September with a 60-day notice period needs a decision by 2 July.

The honest limitation of doing this manually is that it decays fast. A new tool gets added, a contract gets amended, someone leaves and nobody updates the sheet. The audit is accurate on the day you finish it and progressively less so after that.

What to look for in SaaS spend management software

Five things separate tools that solve the problem from tools that describe it.

It pulls from your accounting system automatically, not from manual entry. Manual entry creates a system that's only as good as the last person who remembered to update it.

It tracks contracts, not just invoices. Invoices tell you what you paid. Contracts tell you what you're committed to and when you can exit. A tool that only reads invoices misses the most consequential information.

It alerts on notice period deadlines, not renewal dates. This distinction matters more than it sounds. An alert on the renewal date is too late to act. An alert 60 days before the notice period deadline gives you time to make a decision.

It covers all your software vendors, not just the popular ones. Tools that rely on a fixed catalogue of known SaaS products miss the long tail: niche tools, regional vendors, custom-priced enterprise agreements. Connecting to your accounting data surfaces everything you're actually paying for.

It's priced for companies without a procurement team. If the annual cost of the tool exceeds the first year's savings from better renewal management, the economics don't work.

The vendor list at a 100-person company is real infrastructure. Keeping it current and visible is not an IT project. It's an ops function that every department head and every finance lead has a stake in.

See your full SaaS spend in one place

Connect your accounting system and see every software vendor in one place. Ensurva pulls from Xero, extracts contract terms, and tracks renewal deadlines automatically. Free to start.

Blog
Finance
June 11, 2026
Darren McMurtrie
Written by
Darren McMurtrie
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