Business spend management
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(BSM).
Business spend management is an internal collaboration between finance and procurement teams that aims to improve the efficiency and effectiveness of purchasing and payment.
- Benefits of BSM platforms
- "A Business Spend Management (BSM) platform can provide an organisation with a single source of truth into its current financial situation by tracking all supplier payment terms, invoices pending approval, invoice payment methods available per supplier, approved invoices, in-flight payments, and current cash positions.
- For instance, by combining treasury data with approved PO and invoice data, treasurers and cash managers can obtain greater visibility into their company’s spend, which is fundamental to improving how they manage liquidity.
- In real time, treasurers can see which payments are approaching and which have already been committed.
- In addition, an AP team can make appropriate decisions on when to pay certain large invoices, based on the liquidity position of the company, instead of the treasury team having to respond to large payments triggered by AP without any forward advice."
- The Treasurer, 8 September 2023.
See also
