How Technology is Changing Cost Management

Cost management is a key function in finance that involves planning, controlling, and optimizing expenditures to enhance profitability.  

For finance leaders and accounting teams, managing costs effectively — and remaining competitive — requires moving beyond traditional methods and leveraging modern tools. 

This article explores how modern technology is revolutionizing cost management with actionable tips and advanced tools for finance leaders to enhance efficiency and profitability.

What Is Cost Management and Why Does It Matter?

Cost management encompasses the processes and strategies for planning and controlling a business’s budget. It involves detailed cost analysis, forecasting, and the utilization of cost management tools to ensure financial efficiency. 

Key components include: 

• Cost allocation
• Budgeting
• Savings

Effective cost management is vital for maintaining financial health and achieving business goals. It helps ensure that resources are used efficiently, budgets are adhered to, and expenditures are monitored. 

How Technology Is Changing Cost Management

Traditionally, cost management was a labor-intensive process involving manual data entry, spreadsheet analysis, and extensive paperwork. This approach was slow, prone to human error, and lacked real-time visibility. 

Finance leaders had to wait for periodic reports to make decisions, which often resulted in delayed responses to financial anomalies and missed opportunities for cost savings.

The advent of automation and advanced analytics has revolutionized cost management. 

Modern cost management tools provide real-time data, which empowers finance leaders to make informed decisions swiftly. These tools integrate seamlessly with existing financial systems; they also offer dashboards and visualization options that simplify cost monitoring and control.

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“The controls, scalability, ease, and usability of Navan make our lives so much easier.”

Alex Anthony

Former Director of Accounting and Corporate Finance

Read more about how Navan helped Path Robotics streamline its global growth.

Considerations When Choosing a Cost Management Tool

Finding the right cost management tool for your business unlocks enormous growth and savings — especially in today’s landscape, where cloud computing, SaaS applications, and dynamic business environments prevail.

Here are a few key factors to consider:

1. Customizable Dashboards and Visualization: Customizable dashboards and visualization tools help finance teams gain insights into spending, track metrics, and adjust budgets as needed. These features make it easier to manage complex cost structures.

2. Scalability and Flexibility: The tool should be scalable to accommodate growing workloads and flexible enough to adapt to changing business requirements. In this way, it can support initiatives for cost savings and efficient financial management.

3. Detailed Cost Analysis and Reporting: Practical cost management tools provide detailed cost analyses, cost anomaly detection, and cost reports. They should offer templates for standard reporting and customizable options to meet specific business needs.

4. Real-Time Monitoring and Notifications: Real-time expense monitoring and instant notifications of spending patterns allow finance teams to intervene promptly and prevent cost overruns.

5. Seamless API Integration: Integrating tools like Microsoft, NetApp, and VMware with existing systems via APIs creates a smooth flow of data and enhances the overall efficiency of financial operations.

6. Advanced Cost Optimization Features: Look for features such as reserved instances, savings plans, and rightsizing, which help optimize cloud spend. Tools like NetApp and Densify offer advanced optimization capabilities that ensure cost-effective use of cloud infrastructure.

Transitioning to a superior cost management solution requires understanding your specific needs and the capabilities of available tools. 

Navan Expense: A Superior Cost Management Tool

An effective tool must combine automation, real-time visibility, and advanced analytics. Navan Expense offers these features and more, making it an ideal choice for finance and accounting teams looking to optimize their cost management processes.

By integrating advanced technology and intuitive features, Navan Expense addresses the unique needs of these teams.

Key Features of Navan Expense

• Cost Allocation: Automatically allocates costs to the appropriate departments or projects, ensuring accurate financial records
• Cost Monitoring: Provides continuous expenditures monitoring, helping spot cost anomalies and prevent overruns
• Cost Control: Implements preset spend policies and thresholds to control costs before they occur
• Cost Reports: Generates detailed cost reports that offer insights into spending patterns and areas for cost savings
• Cloud Cost Management: Manages cloud spending efficiently, supporting multi-cloud environments and cloud cost optimization

Transforming Cost Management with Navan Expense

Here’s how Navan Expense transforms cost management:

1. Automation 

Navan Expense liberates finance teams from the burden of manual tasks by automating the entire expense management process, from expense reports to reconciliation. It reduces administrative workload and minimizes human error, giving teams the bandwidth to focus on strategic tasks.

Learn more about how Amobee gained real-time reporting and global reach with Navan.

2. Real-Time Visibility

With Navan Expense, real-time data and insights enable finance leaders to effectively monitor expenditures and set budgets. The platform provides instant notifications on spending patterns, empowering leaders to make timely interventions and maintain financial control.

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“In 2021, auditors told us we didn’t have enough visibility or control of our expenses. Navan changed that — we can now see exactly what everyone’s spending. From a financial control perspective, it’s so much better.”

Binny Sandhu

Financial Controller

Read more about 1E streamlined three T&E solutions into Navan's all-in-one solution.

3. Advanced Analytics

Navan Expense instills confidence using advanced analytics and machine learning to provide actionable insights. Finance leaders can forecast expenditures, optimize pricing strategies, and enhance financial performance by knowing and analyzing robust data.

4. Customizable Dashboards

The platform offers customizable dashboards that provide a comprehensive view of company spending. Finance teams can visualize cost data, track metrics, and adjust budgets.

5. Seamless Integration

Navan Expense integrates with major accounting systems like NetSuite, QuickBooks Online, and Xero, ensuring a smooth workflow and accurate financial reporting. This integration simplifies the adoption process and enhances the user experience, making it easier for finance teams to transition to Navan Expense.

Read more about how real estate and construction firm Penn Group reduced reconciliation time by 73% with Navan.

6. Global Reach

Navan Expense supports multi-currency and global operations, making it an ideal solution for international businesses.

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A main reason we picked Navan is that the solution could cater to every scenario across every region and currency. We were so pleased that we could use a single solution for travel and expense and streamline everything.

Shelley Holton

Manager of Global Finance Services at 8x8

Read more about how 8x8 saves 33% on hotels and pays 100% of expenses with Navan.

Navan Expense simplifies financial management by offering tools that streamline workflows, automate processes, and provide real-time visibility. Features like automated expense reports, customizable spending policies, and seamless integration with financial systems help ensure that finance teams can manage expenditures efficiently.

Additionally, Navan Expense supports project managers with tools for cost analysis, allocation, and project cost tracking. 

Embrace the Change

Cost management is a dynamic and essential function for finance leaders and accounting teams. With the evolution of technology, traditional methods are becoming obsolete. 

Navan Expense offers a modern solution that combines automation, real-time visibility, and advanced analytics to transform cost management. By adopting Navan Expense, businesses can optimize costs, enhance profitability, and achieve greater financial control.

Discover how Navan Expense can revolutionize your cost management processes. Request a demo today.