CFO Cornerstone: Navigating Finance's Complex Landscape

Processing bills is the most difficult part of procurement. 

Bill payments are often mistakenly duplicated, goods aren’t received as per purchase orders, or there are delays in the approval workflow. 

An accounts payable software makes the process hassle-free by automating approvals and payments and giving more visibility and control over your accounts payable (AP). It also enhances reconciliation and improves vendor relationships. 

While the core job to be done by an AP manager is to ensure good vendor relationships, manage between timely payments & cash flow, ensure compliance in payments, what you need is a solution that supports your organization’s finances in one place and ends the chaotic back and forth. 

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What is Accounts payable software?

Accounts payable (AP) software is a tool that helps businesses automate invoice and vendor payments via a centralized platform. An accounts payable automation software brings together all the key information into a single source of truth and enables teams to do the following:

• Tracks bills and their statuses to avoid double payments
• Enables two-way and three-way goods received note (GRN) & PO matching 
• Supports customizable approval workflows for complete visibility
• Supports local and international payments via various payment methods

Thus, AP software simplifies the payment processes and reduces unnecessary friction between finance, procurement & other teams. 

Top 7 accounts payable software in 2024

Here are the top 7 AP platforms for businesses. 

Based on your company size and needs, you can pick one of these to support your accounts payable.

1. Pluto

Pluto is an accounts payable software that transforms your AP processes by simplifying bill processing. From enabling GRN matching to setting fully customizable multi-layer approval workflows, it is the best accounts payable solution to manage your vendor payments and relationships. 

Key features:

• Facilitates three-way GRN matching with purchase orders and item-based matching
• Consolidates approved invoices in a single window to highlight pending bills and avoid delays
• Offers a flexible approval engine capable of managing intricate hierarchies without requiring technical expertise
• Enables multi-layer invoice approvals with policies to align with your company's structure
• Ability to upload invoices easily via WhatsApp images and emails directly to speed up the receipt capture process
• A centralized dashboard to gather bills in one place and track the status to avoid double payments
• Vendor-specific corporate cards to control budgets and detect irrelevant expenses
• Enables creation of a preferred vendors list for quick payments 
• Supports local and international wire transfers to make payments 
• OCR technology minimizes manual data entry by creating and populating bills from invoices
• Supports ERP integration to synchronize your vendors, POs, and bills and integrates with accounting software such as Oracle, NetSuite, Zoho, Quickbooks, Wafeq, Xero, etc.
• Raises alerts for upcoming payments, enables scheduling payments in advance and automates invoices 
• Provides a complete audit trail of the process to ensure visibility at each step
• Shows real-time analytics to facilitate deep insights for supporting budget control

Pricing:

‍Request the sales team for a custom quote.

Pros:

• Enables branch- and subsidiary-level spend tracking (not offered by other platforms)
• Offers up to 2% cashback on all non-AED transactions 
• Independent PCI DSS Level 1 certification
• SSO/SAML Capabilities for Enterprises
• Integrates with Netsuite, Microsoft Dynamics
• Better Forex rates than most local banks 
• Multiple integration options

Cons:

• Integrates with all other major ERPs except Tally
• Slightly longer on-boarding due to corporate card offering 

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2. Tipalti

Tipalti is an automation tool that supports end-to-end AP processes. It helps you streamline accounts payables and make global payments in local currencies for various recipients, from suppliers to freelancers. The cloud-based platform helps finance teams manage payments without losing visibility and control. 

Key features:

• Supports supplier onboarding and vetting to ensure supplier reliability and trustworthiness
• Integrates with ERP and accounting systems to help with reconciliation reporting
• Uses OCR to scan, capture, match, and process invoice data to reduce manual errors
• Provides built-in approval workflows and payment scheduling 
• Offers invoice processing, including two-way and three-way PO matching and approval to avoid overpayments
• Assists AP processes for subsidiaries and entities

Pricing:

Starts at $129 per month per user for the platform fee and charges for additional features separately.

Pros:

• Can manage supplier bank account details in a secure environment

Cons:

• Cannot use it for prepayment invoices on inventory purchases with the ERP system
• High foreign currency exchange fees
• Tax forms can be difficult to fill out and very difficult if you do not speak English

3. Airbase

Airbase is an automation solution for managing global AP processes. It focuses on ensuring compliance and syncing with your accounting tool to streamline the payment process. 

Key features: 

• Offers OCR to populate details, including general ledger (GL) category, date, amount, and purpose
• Supports onboarding with a self-service vendor portal and custom questionnaires
• Has a centralized dashboard with all key information about the invoice to avoid friction 
• Accepts invoices from email or vendor portal across all subsidiaries
• Offers automated approval workflows based on multiple parameters, such as vendor, amount, GL category, etc.
• Enables three-way invoice matching to ensure compliance and reduce wasted spend
• Facilitates payments and approvals, including multi-subsidiary support, international currency, and real-time GL sync
• Real-time audit trail with receipts, notes, and documentation for transparency

Pricing: Request a custom quote.

Pros:

• Intuitive and easy to use; no training or previous knowledge required
• Seamless approval workflows

Cons:

• The mobile app is slow and takes time to load pages 
• SSO-based login is not smooth
• Not suitable for complex branch-level approvals and expenses

4. Ramp

Ramp is an accounts payable solution designed to manage payments and business expenses. It automates bill entries, approvals, and payments while offering complete visibility and control. By tracking each AP step from data recording to approvals, it simplifies payment processing and takes the burden off teams. 

Key features:

• Uses AI to automatically extract key details from invoices to offer accuracy and eliminate data-entry errors
• Identifies duplicate invoices and helps with two-way matching to purchase orders
• Offers custom approval workflows to minimize errors and ensure timely payments 
• Provides a unified dashboard with visibility into the status of invoices
• Consolidates multiple payment options, such as check, card, same-day ACH, or international wire
• Integrates with accounting solutions, such as QuickBooks, Xero, Oracle NetSuite, Sage, etc. for auto-sync bill pay transactions
• Supports international payment processing in multiple currencies 
• Tracks vendor data and transactions for easy reporting and data-driven decisions

Pricing:

Three pricing packages—free or basic features, $15 per user per month for Ramp Plus, and custom quote for enterprises with features like enterprise ERP integration, custom implementation, and local card issuance. 

Pros:

• Works with multiple subsidiaries
• Offers cash back on credit card purchases made using VISA cards

Cons:

• Can’t unmatch an incorrectly matched invoice (invoice to credit card)
• Approval routing can only be set on the vendor level, not department level
• Limitations in syncing repayments

5. Bill

Bill is a spend management solution for SMBs to control payables, receivables, expenses, and all corporate expenses. It allows businesses to streamline scattered AP processes into a single platform and gain more control over their finances. 

Key features:

• Enables tailored approval processes to facilitate approvals with minimal hassle
• Automates purchase order workflows with the option for automated two-way and three-way matching
• Simplifies expense reconciliation through quick coding and integration with accounting systems
• Automates receipt matching, categorization, and expense reporting, decreasing administrative tasks
• Syncs with all major accounting systems like QuickBooks, Sage, Intacct, and NetSuite
• OCR auto-populates invoices for data entry
• Provides bulk payments of approved invoices with payment choices, such as ACH, credit cards, checks, and international wire transfers
• Offers audit trail of any changes or actions related to the invoice on a single page

Pricing: Provides a free trial and essentials pack starting at $45 for six standard user roles. Its team and corporate pack are for $55 and $79, respectively. Enterprises need to request a custom quote.

Pros:

• One-click swift payments
• Minimum training required
• Easy-to-use mobile app

Cons:

• Customer support is difficult to initiate, slow, and unresponsive
• Frequent changes in the interface create confusion for users
• Limited customization options for reporting 

6. Melio

Melio is a bill payment tool that enables businesses to pay via bank transfer and debit cards. Even when the vendor accepts only checks, it pays checks on your behalf to facilitate bill processing. It processes payments and issues checks without the payee having to use the platform. It is a tool suitable for small businesses to process payments without hassle. 

Key features:

• Enables payments via credit card even when the vendor doesn’t accept the card to support deferred payments
• Allows inviting additional users (such as accountants) to set up roles and permissions and manage approvals easily
• Supports two-way sync with QuickBooks and Xero
• Facilitates bulk payments and split payments (splitting bills into multiple payments) 
• Offers international payments across the border 
• Raises duplicate payment alerts to assist in fraud detection

Pricing:

Free to process ACH payments to vendors; charges a fee for other payment modes (check Melio pricing)

Pros:

• Offers a free-to-use payment module (only with QuickBook)

Cons:

• Lack of integration with accounting software
• Turnaround time on a check is three business days 
• Support is very limited
• Limits payments to two checks per month 

7. Spendesk

Spendesk automates the AP process by bringing together purchase orders and invoices to facilitate budgets, payments, and approvals. It creates a single source of truth to cut hours of manual work and detect errors better. It is a cloud-based software that improves budget control and financial reporting. 

Key features:

• Offers a centralized platform for tracking payments right from the purchase order stage 
• Supports invoice capture via email and image/file upload
• Uses OCR to extract key information from the invoice, such as supplier name, amount, dates, and purchase details
• Enables budget changes in real time without a manual data-entry system
• Allows scheduling of payments and matching of purchase orders with the invoice for effective GRN matching
• Provides customizable and built-in approval workflows and controls to monitor spending 
• Raises alerts for duplicate invoices to enable teams to avoid overpayments and defect frauds

Pricing:

‍Request a custom quote.

Pros:

• Super convenient for ad-hoc expenses 
• Intuitive and interactive interface
• Easy manual upload in case OCR doesn’t support receipt capture  

Cons: 

• Glitchy virtual card payments with delayed notifications and declined transactions
• OCR-based receipt capture only works for emails
• Basic features like memorizing accounting patterns for vendors are only available in the paid module

What are the benefits of accounts payable software?

Adopting AP software helps you in the following ways: 

• Gives real-time visibility into the status of invoices and payments
• Provides insights into spending patterns, vendor performance, etc.
• Streamlines payment and approval workflows, leading to smoother payment processes and vendor relationships

How to choose a good accounts payable Software

Ease of use

The AP software must be flexible to accommodate complex hierarchies without making it difficult to follow the workflows. It should offer trigger-based workflows and a clean user interface. Your team shouldn’t struggle to learn how to use the product and rely on the support team to get basic invoices cleared. 

Multiple payment options

From local transactions to international wire transfers and other digital payment options, AP software must support multiple payment options. It becomes easier with vendor-specific cards that make payments safe and fast. Pluto helps you set up vendor-specific cards, even for public relations officers. This is something most platforms on the market do not support.

Accurate data capture

AP software with OCR capabilities makes invoice processing faster and reduces errors. The ability to process invoices from different platforms and sources, such as emails, Slack, and WhatsApp, is required. Moreover, moving these captured invoices into the centralized database and syncing with accounting software eliminates the manual data entry task.

Approval workflow

Approval workflows are key for timely and accurate payments. An AP software must have a simple no-code workflow builder, even for complex hierarchies. This is especially useful for large organizations where this process can be intricate and long. 

Integration

Vendor payments need to be recorded across accounting systems for effective reconciliation. The AP software must integrate with your accounting systems and platforms to automate data entry and facilitate a synchronized record-keeping system.

Centralized dashboard

The AP software should offer a dedicated dashboard with all the key information such as vendor, invoice number, status, description, etc. Also, it must give a separate centralized view for expense tracking. This gives you visibility into where you spend the most and helps you optimize resource allocation. 

Supports GRN matching

The AP software interface must be designed in such a way that it supports GRN matching, both two-way and three-way matching. Be it in the form of OCR invoice capture or offering item-based matching capabilities. This will avoid any under- or over-payments and support a healthy vendor relationship. Also, this eliminates complications in the reconciliation process.   

Reporting 

Reporting capabilities of AP software help to identify the spending patterns and other key insights related to department-specific expenses, budgeting, etc. Hence, AP software must provide a dedicated reporting dashboard with the option to export the reports for enhanced analytics and reporting. 

Transforming Accounts Payable with the Right Software

Accounts payable is not just about clearing bills and vendor payments. It is the basis for vendor relationship management and proper order in financial processes. From getting approvals to matching GRN, you need software that offers ease of use with the right blend of functionality. 

Too complex of a product will leave your employees confused, leading to double work. Lack of customization will have teams work harder to adopt the product. Limited integration will have the accounting department working twice as much on data entry and syncing. 

Make the right decision and choose software that gives you control, customization, security and speed, all while embracing automation capabilities. 

Book a demo and discover how a simple automation tool transforms your AP process.

The traditional procurement process is time-consuming, prone to errors, complex, and challenging to implement efficiently. From raising a purchase request to making vendor payments, multiple stakeholders are involved. In addition, securing approvals through various channels of an organization leads to chaos. Hence, 77% of companies are shifting to procure-to-pay solutions, also known as procurement software.

What is Procurement Software? 

Procurement software are tools that automate the procurement process. 

Instead of relying on multiple platforms and different channels to procure goods and services, the process is automated and brought together on a centralized platform. 

A powerful procurement solution helps you in:

• streamlining the request and approval process for purchases
• generating, tracking, and managing purchase orders
• creating, negotiating, and tracking supplier contracts
• managing and maintaining supplier relationships 
• automating invoice validation, approval, and payment workflows
• integrating with other systems for seamless data flow and coordination.

What Are the Benefits of Procurement Software? 

By automating your procurement process with a procurement management software, you can improve it in the following ways: 

• Once you enter data, it is auto-populated throughout the procurement cycle. This minimizes the risk of errors due to manual data entry in purchase orders, invoices, and other documents.
• You get real-time visibility into the procurement process. You can also track the status of purchase requests, orders, deliveries, and payments. 
• With built-in reporting and analytics tools, you can generate detailed reports on spending, supplier performance, and other key metrics. This data-driven insight enables better inventory planning and strategic decision-making.
• You can standardize workflows for purchase requisitions and approvals. Route the requests to the appropriate individuals for approval and reduce any delays. Notifications and reminders are automated, ensuring timely responses.
• Invoice processing and payment workflows are automated. This ensures that invoices are paid on time. This helps in taking advantage of early payment discounts and strengthens vendor relationships. 

Top 6 Procurement Software 

To help you select the procurement management software best suited for the needs of your organization, we have listed the top 6 procurement solutions:

1. Pluto 

Pluto is an all-in-one procurement software designed to transform your accounts payable (AP) processes. It reduces your finance team's workload and makes procurement easy. From automating purchase requests to setting multi-layer approval workflows and managing vendors, it is the ultimate procurement solution to transform a chaotic procurement process into a faster and more efficient one. 

Key Features:

• Features fully customizable and automated workflows for raising purchase requests and purchase orders, requiring no technical expertise
• Offers flexible approval engine capable of managing intricate hierarchies
• Enables multi-layer invoice approvals with policies to align with your company's structure
• Ability to upload invoices easily via WhatsApp images, eliminating the need to search for invoice details. Also, facilitates invoice capture via emails directly to speed up the receipt capture process.
• A centralized dashboard to gather bills in one place and track the status to avoid double payments
• Vendor-specific corporate cards to control budgets and detect irrelevant expenses
• Supports local and international wire transfers to make payments 
• OCR technology minimizes manual data entry by creating and populating bills from invoices
• Supports ERP integration to synchronize your vendors, POs, and bills and integrates with accounting software, such as Oracle, NetSuite, Zoho, Quickbooks, Wafeq, Xero, etc.
• Raises alerts for upcoming payments and enables scheduling payments in advance and automate invoices 
• Provides a complete audit trail of the process to ensure visibility at each step
• Shows real-time analytics to facilitate deep insights for supporting budget control

Pricing:

‍Request the sales team for a custom quote

Pros:

• More financial control with vendor-specific corporate cards 
• Better Forex rates than most local banks 
• Multiple integration options

Cons:

• Slightly longer on-boarding due to corporate card offering 
• Integrates with all other major ERPs except Tally

2. Yooz 

‍

Yooz optimizes the AP process, specifically focusing on invoice management. It is a cloud based software that uses artificial intelligence (AI) and machine learning technologies to enhance security and control in AP automation. It is suitable for mid-size companies of all sectors wanting to automate procurement with a cloud-based procurement solution. 

Key Features:

• Enables online, real-time management of supplier relationships, improving communication and collaboration
• Provides mobile access for invoice approval and communication
• Maintains regulation-compliant traceability, ensuring adherence to relevant laws and standards
• Automates real-time GL coding and purchase order matching
• Captures all types of documents through various channels, such as email, drag-and-drop, mobile, scan, and sFTP, supporting multiple formats, including PDF, Factur-X, UBL, CII, and EDIFACT
• Integrates with accounting software and  and ERPs
• Allows users to approve and pay invoices in batches, offering multiple payment options, such as Virtual Credit Card, ACH, eCheck, and Paper Check
• Offers a range of services, including consulting, configuration, training, and user support

Pricing:

Free trial for up to 15 days followed by a "pay-as-you-use" model.

Pros:

• Integration with Sage Intacct
• Ability to tag people in the comments and email them directly from the invoice
• Numerous criteria available for setting up the approval workflows

Cons: 

• Doesn’t offer payment services in UAE, so you need to carry out payments on a different platform
• Doesn't have integrations with major suppliers as a form of punchout
• Time-consuming to download and export files
• Hard for vendors to send the invoices through Yooz

3. Procurify

Procurify speeds up the procurement process, enhances internal communication, and reduces financial risks. It is an easy-to-implement tool that saves time for finance and operations teams. From catalog management to custom user controls, it helps to track the procurement process in real-time. 

Key Features:

• Tailors purchase orders to match your internal processes and vendor expectations
• Creates, tracks, and maintains an audit trail of all procurement transactions for transparency and compliance.
• Enhances financial controls by enabling purchase order-based purchasing
• Ensures that requested items are approved against budgets before procurement.
• Sync purchase orders with your accounting system or ERP, whether via API, CSV, flat file, or direct integration
• Integrates with trusted suppliers through PunchOut catalogs to streamline the ordering process.
• Enables blanket purchase orders, which involve making multiple purchases against a single purchase order, even when details of future purchases may be unknown.
• Purchase order workflows to save on shipping costs, unlock vendor discounts, and reduce paperwork 

Pricing:

Starts at $2000/month with a custom pricing tier

Pros:

• Easy to make amendments in the original purchase order
• Enables ordering from multiple websites for resources, including Amazon
• Makes it easy to upload documents to support expense and order reports

Cons:

• Doesn’t offer payment services in UAE, so you will need to carry out payments on a different platform
• Isn’t catered to the UAE market, and does not support UAE specific workflows such as VAT management
• Cannot edit orders once they are approved
• Cannot see the order history for a catalog item without running a report
• Physical inventory has to be tracked outside Procurify

4. Precoro

Precoro is a cloud-based solution designed to streamline operations, automate tasks, and centralize purchasing procedures. It enables tracking discounts, monitoring corporate expenses, and enhancing cash flow transparency. It also provides analytics and reports for strategic procurement planning.

Key Features:

• Simplifies the approval by allowing users to approve from any device via email or Slack notifications. 
• Supports customizable approval workflows with multi-step and role assignment
• Facilitates creating, approving, and tracking purchase orders and transfer orders from Amazon Business via Punch-in
• Connects with various ERPs and business tools like NetSuite, QuickBooks, and Xero, or its API
• Ensures data security through Single Sign-On (SSO) and 2-factor authentication
• Offers an intuitive interface and guidance from a dedicated customer success manager whenever needed
• Gives a risk-free 14-day free trial with access to all features

Pricing:

Starts at $35 per user per month billed annually for teams with under 20 members and offers custom pricing for enterprises

Pros:

1. Provides flexibility for enterprise needs
2. Works well for budgeting procurement
3. Allows tracking invoices in a centralized environment

Cons: 

1. Requires training to customize complex workflows
2. Invoice processing is slow
3. Isn’t suitable for manufacturing industries
4. Difficult to collaborate on invoice drafting

5. Kissflow

Kissflow simplifies and enhances procurement processes while ensuring transparency and compliance. It helps to automate the entire process without requiring technical expertise or coding experience. It comes with 50+ ready-to-use applications, enabling unlimited automation applications.  

Key Features:

• Offers fluid forms to enable easy capturing, approval, and tracking of purchase requests
• Allows to register and maintain vendors effortlessly with access to multilingual catalogs
• Integration with accounting systems, ERP, and finance systems like Quickbooks, SAP, and Microsoft Dynamics 
• Accelerates the invoice approval process with timely alerts and automated checks. Connect invoices to contracts, purchase orders, and service entry sheets in a single dashboard
• Customizable reports to visualize data using charts, filters, and heatmaps
• Ability to define and manage budget restrictions with dynamic rules throughout the entire procure-to-pay lifecycle
• Customized approval workflows to ensure transparency with rule-based approval processes
• Smart alerts that provide real-time updates on the status of purchase orders and invoices to keep stakeholders informed 

Pricing:

Starts at $2499/month (billed annually). Pricing varies based on transaction volume and number of users.

Pros: 

• Intuitive interface with a relatively short learning curve
• Allows automated workflows to be created with limited technical expertise

Cons:

• Not built specifically for procurement teams
• Does not support payment flows in UAE
• Cost of its license is high (particularly for SMBs)
• Can not handle intricate processes that require a high degree of customization or involve multiple conditional branches
• Customization options are limited, including specific integrations, advanced business rules, or more sophisticated automation capabilities

6. Vendr

Vendr is a practical solution for streamlining SaaS procurement. It simplifies the entire process, from intake requests to contract management. It provides essential SaaS insights, negotiates expert advice, and integrates with core business tools for procurement and vendor management. 

Key Features:

• Buyer guides to provide negotiation insights and gain the upper hand in software purchases
• Negotiation advisory to provide personalized guidance on negotiating like a pro and enter negotiations with confidence
• Simplified intake forms to ensure company-wide compliance and visibility
• Integration with different accounting and finance tools, such as Oracle, NetSuite, Intuit, Quickbooks. 
• Integrates with platforms like Rippling Workday to include correct stakeholders. Additional integration with SSO providers such as onelogin.
• Comprehensive renewal dashboard to receive early alerts and streamline the renewal preparation process to maximize savings.
• Vendr Slack integration for quick answers and timely notifications to collaborate in real time with your team, minimizing approval cycle times

Pricing:

There are 2 packages—the basic one starts at $15,000/year and the pro package starts at $20,000/year.

Pros:

• Offers assisted buying with a team who negotiates on your behalf
• Comprehensive database of vendors in one place
• Helps standardize procurement workflow 
• Provides insights about fair market value 

Cons:

• Restricted to SaaS procurement only 
• Multilingual services are limited 
• Navigating multiple workflows is not as fluid as desired
• Doesn't support multiple currencies 

Find the Right Procurement Software 

When choosing procurement software, focus on user-friendliness, scalability, and integration capabilities. Make sure the software aligns with your specific needs.

Finding the right software for accounts payable automation will be crucial for your business. For instance, if you frequently deal with multiple suppliers and have a complex approval process, ensure the software can accommodate these intricacies. Similarly, if you're in the healthcare industry, look for procurement software that complies with industry regulations like UAE Healthcare Law and the Dubai Health Authority (DHA) regulations. This ensures the privacy and security of patient data and adheres to local data protection standards. Moreover, check if the vendor offers active support and training. In case of a technical issue, having an unresponsive support team can disrupt the process and create bottlenecks.

Don't rush the decision. Thoroughly evaluate multiple options. Investing in an appropriate solution will save you money and headaches in the long run.

Want a tool that is safe, fast, and transforms your chaotic procurement process into an automated solution? Book a demo today and see how Pluto can simplify procurement for your team.

In today's fast-paced business environment, most organisations rely on Enterprise Resource Planning (ERP) systems as foundational tools to manage and integrate various business processes. ERPs traditionally offer a broad spectrum of functionalities, assisting in handling essential operations such as procurement, data management, accounting, and supply chain management.

ERP systems provide a comprehensive suite of software functionalities to enhance and optimise various aspects of business operations. Over time, these systems have evolved, shifting from on-premises solutions to cloud-based platforms. However, organisations still face challenges when implementing ERP solutions across their enterprise.

One significant aspect often overlooked in ERP systems is their limitation regarding financial operations & intelligence. ERP solutions primarily focus on improving business processes and management but do not directly handle monetary transactions or provide financial products. This necessitates the integration of external financial institutions and banks with ERP systems.

Moreover, traditional ERP systems struggle to keep pace with the dynamic demands of modern procurement, particularly in the ever-evolving supply chain environment. Today, ERP systems need to be more proactive, incorporating features like real-time analytics and flexible processes to meet the ever-shifting requirements of procurement. Adapting to these changes is essential for businesses aiming to enhance their procurement efficiency and agility.

ERP Systems vs Procurement Solutions: How Are They Different?

ERP systems were initially designed to automate business processes and offer insights for internal controls, while procurement solutions comprehensively manage the ecosystem.

A P2P or a procurement solution is primarily built to meet an organisation's procurement and supply chain needs, an arena always problematic for traditional ERP.

Innovative organisations are now adopting leaner and cheaper solutions for their procurement processes. These tools can deftly handle specialised tasks and yield instant results.

Limitations of ERP

Factors like market volatility, evolving work dynamics, and shifting supply chains have made it challenging for businesses to integrate their procurement processes into their current ERP systems. Hence, it is vital to use specialised solutions to cater to dynamic business processes.

But before exploring the benefits of specialised solutions, let us consider the limitations of ERP:

Long Implementation Duration that Impedes ROI

Customising legacy ERP to meet procurement or supply needs is a hassle. It contributes to a longer implementation duration lasting several months. Customisation projects are resource-intensive. That makes a fast ROI virtually impossible to achieve.

Moreover, businesses must hire ERP consultants or trained partners for the implementation. The success rate and the implementation duration heavily depend on the expertise of such third parties.

With many companies already strung tight regarding capital, implementing legacy ERP to function as procurement systems may prove counterproductive.

Expensive Implementation and Maintenance

Legacy ERP licenses come at a high price. Depending on your software, ERP implementation costs can range from $150,000 to $750,000.

Moreover, procurement processes almost always require extra modules that can further increase costs. It also includes the additional burden of maintenance costs and training employees to use the software.

Failures To Meet Business Goals

The success rate of ERP implementation is dwindling. Recent studies from Gartner indicate that the failure rates of ERP implementations can exceed 75%. McKinsey, a reputed global consultancy, supports this claim as it quantifies the failure rate of all digital transformations to be higher than 70%.

One famous example is Hershey's ERP implementation failure in 1996 as they set out to replace their legacy IT systems with an integrated ERP environment. They chose SAP's R/3 ERP software, and an implementation time of 48 months was recommended, which was later cut down to 30 months. The result - a $10 million investment leading to a loss of $150 million in revenue, a 19% reduction in share price, and a 12% loss in international market share.

With such massive costs and periods involved in achieving numbers from legacy ERP solutions, using specialized procurement systems can make achieving business objectives far easier.

Lack of analytics and insights

ERP systems often fail to deliver the necessary analytics and data for effective operations. Managing vast volumes of data within these systems can be daunting. Challenges include ensuring data quality, the lack of real-time insights, limited data analysis capabilities, and integration issues with other software applications.

Poor User Experience

Many ERP systems require makeshift solutions to modify their functionality according to user demands, leading to frustration with end-users.

Legacy ERP systems are notoriously complex, making them challenging for end-users. Frequently, users must navigate between multiple interfaces, hindering productivity and adoption.

Furthermore, the lack of mobile apps and scattered functionalities exacerbate the issue—problems that a dedicated procurement solution can readily address.

Complex User Interfaces

ERP systems offer enterprise-grade capabilities, yet their inherent complexity and poor user experience pose significant challenges. Users often struggle with confusion, as traditional ERPs are overly intricate. The need for add-ons further exacerbates the complexity, as these additions must seamlessly integrate with the existing ERP system. This constant juggling of different user interfaces not only hampers productivity but also hinders widespread adoption.

Compromised Collaboration

One of the most disappointing aspects of legacy ERP systems is the lack of in-built communication channels. ERP systems struggle with establishing themselves as a medium of dialogue between internal business users and external suppliers, as they are not accessible from outside the business network. It tangles communication channels through unnecessary phone calls and scattered information exchange lines.  

They are also severely limited in their capacity to maintain supplier pipelines, requiring most data to be entered and managed through several spreadsheets.  

Urgent reports, design changes, and other important information cannot be communicated promptly, which may lead to losses. It leads to unnecessary time consumption and inaccuracies.

Solving ERP Issues with Dedicated Procurement Solutions

Addressing the limitations of ERP systems, organisations are increasingly turning to dedicated procurement solutions to streamline their purchasing processes and enhance efficiency. These specialised solutions offer advanced analytics, real-time insights, and improved data quality, making it easier for businesses to manage their procurement operations effectively.

By integrating dedicated procurement solutions with their ERP systems, organisations can bridge the gap between data management challenges and their need for comprehensive procurement intelligence, ultimately driving better decision-making and cost savings.

Addresses Overspending Issues

Integrating P2P software with ERP can prevent overspending in procurement. By harnessing ERP with eProcurement solutions, you can efficiently assess expenses across purchasing categories.

It allows you to manage budgets and increase savings. Moreover, integrating procurement solutions with ERP simplifies procurement management by automating approval processes.

Boosts Vendor Collaboration

Vendor collaboration is one of the most essential aspects of procurement. Keeping them informed of the relevant business operations helps avoid miscommunication.

By integrating procurement solutions with ERP systems, buyers and suppliers can access real-time data, empowering them to make informed decisions. This integration brings advantages such as:

• Enhanced collaboration: Seamless collaboration between buyers and sellers, achieved through transparent access to purchase orders, invoices, and receipts.
• Supplier empowerment: Suppliers are empowered with real-time insights into payment statuses via a supplier portal, which enables sound financial planning.
• Stronger buyer-supplier relationship: Heightened transparency nurtures and strengthens the critical relationships between buyers and suppliers, a fundamental cornerstone for any successful business.
  

• Improves Scalability and Flexibility

As businesses expand, stakeholders must seek platforms that can swiftly adapt to increased operational demands and changes in the operational cycle.

Procurement software provides essential features like mobile and remote access that most businesses require to scale operations. It also allows businesses to create highly specialised and efficient platforms, saving money, time, and human resources.

Helps Eradicate Duplication Issues

Procurement solutions can help connect all departments to ensure office supply orders are placed through a centralised system. They help share real-time data across tech, IT, finance and accounting, HR, sales, and marketing teams. It helps prevent duplicate purchases by coordinating buying across departments. Improved coordination also allows teams to maximise discounts and negotiation opportunities while saving time, money, and effort.

Reduces Procurement Errors Through Automation

Specialised software can help organisations optimise deals, accelerate processes, and reduce errors through automation. It helps allocate repetitive and simple tasks to the system rather than to users.

For example, businesses can automate their supply ordering with this technology. Automation helps set limits to ensure timely orders, prevent shortages, and follow any restrictions they have in place.

Handles Compliance and Risk Management Issues

Managing procurement-related risks and complying with regulations can be pretty challenging. An ERP-procurement integration empowers the software to handle compliance matters and mitigate risks during procurement processes, even involving multi-currency transactions.

Supplier Performance Management

Managing supplier performance during the procurement process can be quite challenging without the right tools at your disposal. However, by integrating procurement software with an ERP system, you can simplify collecting and analysing data related to supplier performance.

This valuable information encompasses delivery times, product quality, and responsiveness, enabling you to decide whether to maintain or end supplier relationships.

Inventory Management

Inadequate inventory management can result in too much or too little stock. These outcomes affect working capital and operational efficiency. One practical approach to tackle this problem is integrating procurement solutions with ERP systems. Such integration offers benefits like:

• Real-time visibility into inventory levels, allowing for monitoring.
• Automated reordering process, reducing the burden on manual efforts.

For example, a supermarket chain can leverage sales data to automate the reordering of items, minimising waste and ensuring the availability of products.

Provides Analytics for Better Insights

By integrating procurement solutions with ERP, businesses gain a flexible data model capable of handling big data. It manages the data and offers valuable insights to enhance information generation, storage, and decision-making. Procurement software encompasses advanced spend analytics, supplier benchmarks, and comprehensive performance management.

Drastically Improves End-User Experience

Procurement solutions are built from the ground up, keeping procurement operations as the top priority. It helps avoid a cluttered, mismanaged UI that comes with legacy ERPs, enabling users to be more productive.

End-users can adapt to changes in the software much quicker, increasing efficiency.

Conclusion

Procurement and sourcing processes require a dedicated platform in 2023. Unlike legacy ERP, such dedicated solutions can handle complex sourcing and procurement operations. They ensure a streamlined and seamless flow of relevant information between internal business organisations and external suppliers, allowing all stakeholders to have complete project visibility.

The outcome of implementing a smaller yet far more efficient tool will facilitate faster time to market, subsequently letting you achieve your ROI at an expedited rate.

While customising an ERP may sound enticing, opting for an eProcurement solution is smarter.

Managing business spend is a key concern for most companies. The use of spreadsheets, paper receipts, paper vouchers and handwritten notes makes processes inefficient, time-consuming, and resource-intensive. It also reduces the finance team’s visibility over the company’s spend. 

The lack of control over spend causes stress within finance teams, who lag behind due to lack of visibility.  Moreover, the cash chaos leads to unspoken internal resentment wherein CFOs think that their teams aren’t providing the necessary key financial insights they require.

A spend management platform can solve this problem. But not every software offers the same functionalities and benefits. You need to select the one that has a good UX and in-depth offerings, enables more reporting, is flexible and scalable, integrates with your ERP, supports the complexities of your business, and has robust security. It should also fit into your organizational structure.

To help you choose the most suitable one for your organization, this article will cover the top 7 spend management software to manage your corporate spending. 

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What Is Spend Management Software?

A spend management software is a tool that helps manage corporate spend, i.e., all non-payroll expenses. It does this by:

• Simplifying capture, storage, and retrieval of receipts and documents to reduce the risk of misplaced receipts
• Deploying approval workflows to ensure that business spending follows the company's approval hierarchy
• Providing real-time visibility into business expenses, helping to identify any irregularities
• Generating alerts when an expenditure violates company policies
• Automating employee reimbursement processes to reduce delays in employees getting paid
• Maintaining a complete audit log, including spending approvals and changes
• Easily sync with your ERP/accounting tool for streamlined month-end close
• Managing petty cash expenses by tracking and recording small, miscellaneous expenses in real-time
• Facilitating payment capabilities to handle outgoing financial transactions
• Integrating corporate cards for real-time expense tracking and control spending
• Facilitating procurement processes for the purchase of goods and services
• Handling invoice management to ensure timely payment and record-keeping to foster healthy vendor relations

Hence, spend management software provides financial visibility and control.

Top 7 Spend Management Software

These are the top 7 spend management software to consider:

1.Pluto 

‍Pluto is a spend management platform for enterprises that transforms your finance processes with automation to provide more visibility and control. It brings together the spenders, savers, and sourcers of your business to offer a complete revolution from a chaotic spend management system to a seamless collaborative workflow. It is the fastest way to manage your finances, including account payables and employee reimbursement. 

Key Features:

• Custom approval workflows that adapt to the company's hierarchy for timely and accurate approvals 
• Facilitate intricate multi-layer workflows to adapt to complex hierarchies to support seamless purchase requests and automate purchase orders
• Unlimited corporate cards with budget controls to maintain expenses within corporate policies
• Offers zero-balance cards, which get funded once the expense is approved.
• Card-specific policies to make branch & subsidiary-level reimbursements easy
• Ability to add comments and document the conversation along with other transaction details to maintain a comprehensive audit log
• View-only access available for external accountants to review financial data without making changes
• Automated receipt capture through OCR, with the ability to support bulk upload via WhatsApp and emails 
• Alerts in case of duplicate receipt uploads to avoid fraud and compliance issues
• Custom expense reports to overview business expenses and spending trends
• Integration with accounting platforms like Netsuite for advanced general ledger (GL) coding, tax tracking, vendor syncing, etc. 
• Secure document storage with a 5-year audit log and bank-grade encryption

Pricing:

 Request a custom quote

Pros:

• Enables branch & subsidiary-level spend tracking (not offered by other platforms)
• WhatsApp integration to make receipt upload easy
• Offers up to 2% cashback on all non-AED transactions 
• Independent PCI DSS Level 1 Certification

Cons:

• Slightly longer on-boarding due to corporate card offering 
• Integrates with all other major ERPs except Tally

2.Procurify 

Procurify simplifies spend management by accelerating the approval and reconciliation process. It helps to track the business spending with real-time tracking and breaking down data silos. With a core focus on simplifying invoice payments and management, it helps businesses in vendor and spend management.  

Key Features:

• Ability to approve requests based on attached receipts and leave comments for clarification
• Custom budgets for different departments or projects
• OCR to auto-extract invoice data with a dedicated centralized invoice box and automatic matching with purchase orders
• Detailed reports based on different departments, categories, or other relevant parameters
• Tailored expense request forms to capture specific information relevant to the organization's needs
• Compatibility with multiple currencies, streamlining international expenses
• Storage of all expense-related documents, including receipts, invoices, and expense reports
• Integration with ERP to sync expense data

Pricing: 

It has standard all-in-one pricing of $2000/month. But custom pricing quotes are provided for add-ons like more users, more domains, NetSuite integration, on-premise training, implementation services, and on-premise hybrid implementation.

Pros:

• Easy to make amendments, for instance, to invoice amounts, which helps when raising a PO before receiving the invoice
• Responsive support team when handling technical issues

Cons:

• Does not offer corporate cards in UAE 
• Only supports procurement based spending 
• Poor reporting capabilities—lacks functionality  

3. Spendesk 

Spendesk combines approvals, corporate cards, expense reimbursements, and invoice management to automate the spend management process. Specifically designed for finance teams, it offers real-time expense tracking and offers custom workflows for complete control. By consolidating all payments, it provides a spend management solution that enhances financial transparency. 

Key Features:

• 100% digital expense reports
• OCR technology to capture and extract key details from receipts 
• Expense claim history, available anytime, anywhere, for quick and accurate reporting
• A mobile app for quick reimbursement requests by snapping a photo of receipts
• Real-time expense monitoring to spot errors and missing receipts and stay compliant
• Automates categorization of expenses and VAT account
• Detects duplicate invoices and errors to support three-way matching
• Tracks all purchase orders and invoices with the ability to schedule payments

Pricing: 

Request the sales team for a custom quote. A free trial is available.

Pros:

• Single purchases are straightforward and simple
• Easy to integrate with an SSO provider, making login easy and secure for users 
• Handy drag-and-drop receipt functionality

Cons:

• Virtual cards are glitchy, with merchants rejecting transactions that have already gone through
• Some basic features are not included in the basic option where they should have been (i.e., memorizing accounting patterns for vendors). 
• Corporate cards have defects (especially for travel expenses)

4. Airbase

Airbase simplifies expense reporting with AI and ML. It ensures quick, hassle-free, and smart corporate expense management. It is an automation solution for SMBs and large enterprises. It packages various modules such as AP automation and corporate cards to ease the spend management process for accounting teams and employees.

Key Features: 

• OCR to populate details, including GL category, date, amount, and purpose
• Ensures compliance by sending reminders and, if needed, locking cards until policies are met
• Reminders to upload receipts, eliminating the need to chase employees for receipts
• Custom approval workflows and budget limits for physical cards
• Real-time alerts for suspicious activity, enabling quick responses to potential fraudulent purchases
• Supports onboarding with a self-service vendor portal and custom questionnaires
• Facilitates payments and approvals, including multi-subsidiary support, international currency, and real-time GL sync
• Real-time audit trail with receipts, notes, and documentation for transparency.

Pricing: 

Request the sales team for a custom quote.

Pros:

• Intuitive and easy to use; no training or previous knowledge required
• Seamless approval workflows

Cons:

• Poor reporting capabilities
• The mobile app is slow and takes time to load pages 
• SSO-based login sometimes takes a few tries
• Not suitable for complex branch-level approvals and expenses

5. Coupa

Coupa is a cloud-based automation platform to manage business spending, ranging from procurement to expense management. It facilitates supply chain optimization by providing visibility and control. It streamlines expenses, reduces risk, and ensures compliance by automating reporting, simplifying reimbursements, and offering mobile tracking. 

Key Features:

• Offers virtual payment cards for pre-approved expenses, speeding up the reconciliation
• OCR technology and integration with accounting software eliminates manual data entry
• Provides expense reports with intelligent algorithms to prevent fraud and ensure compliance
• A centralized view of all expense spending, enabling accurate assessment
• Enables visibility and control over travel expenses before they occur, ensuring budget control
• Simplifies procurement by offering a centralized area for comparing items from various suppliers and managing punchouts and hosted catalogs
• Provides real-time visibility into purchase orders, order lifecycle, and order line availability
• SmarterTrip feature to automate expense tracking based on the user's location, including mileage and receipt capture

Pricing: 

Request the sales team for a custom quote.

Pros:

• Several categories and filters in the analytics section to streamline data
• Chat option enables approver and claimant to discuss issues with receipts
• Enables setting up of customized approval chains and including additional new approvers  

Cons:

• Lots of unnecessary notifications, making it difficult to select the ones that need action or comment
• Low receipt searchability, making retrieval time-consuming
• Inconsistent syncing of remit-to address from NetSuite
• Complex to implement and not intuitive, forcing admins to spend more time resolving employees' queries
• Slow customer service 
• Very expensive

6.BILL

‍BILL simplifies expense tracking by providing real-time visibility and customization to manage expenses. It is a spend management solution for SMBs to control payables, receivables expenses, and all corporate expenses. It allows businesses to combine a scattered spend management process into a single platform with seamless syncing. 

Key Features:

• Provides credit limits ranging from $500 to $5 million to control spending within constraints
• Makes it easier to monitor spending with real-time visibility into the business finances
• Custom approval workflows to speed up the approval process with minimal friction
• Multiple payment options, including ACH, credit card, check, international wire transfers
• Automates purchase order workflows with the ability to sync and automate two-way matching and three-way matching
• Ability to do quick coding and sync with accounting systems to streamline expense reconciliation
• Enables automated receipt matching, categorization, and expense reporting, reducing administrative workload
• Offers security features, including the ability to freeze and create corporate cards instantly
• Notifies administrators of each employee's transactions, ensuring timely oversight

Pricing: 

Bill provides a free trial and essentials pack starting at $45 for six standard user roles. Its team and corporate pack are for $55 and $79, respectively. Enterprises need to request a custom quote.

Pros: 

• One-click swift payments
• Minimum training required
• Easy-to-use mobile app

Cons: 

• Customer support is difficult to initiate, slow, and unresponsive
• Frequent changes in the interface create confusion for users

How to Choose the Right Spend Management Software 

To pick the right software, understand your organization's unique needs.

• What are your goals—cutting costs, enhancing compliance, or making expense processing more efficient?
• What issues do you face with expenses now—a time-consuming process, too many errors, or poor vendor relationships?
• How many employees will use the software, and should it be scalable to accommodate future hires?
• Do you have specific industry rules or in-house policies the software must follow?

Consider these eight factors:

Ease of Use

The software should require minimal training or support with a not-too-steep learning curve. Admins shouldn’t have to spend hours training their employees.

Automation

Choose software with features like automated approval workflows, expense categorization, and notifications. This will improve not only visibility but also accuracy and speed. You will have complete control over finances without having to do tedious manual tasks. 

Security

Pick software that complies with security and is certified. It should provide data encryption, role-based access control, and regular security updates.

ERP Integration

The software should integrate with existing financial and accounting systems. This provides a unified view of your financial data without any disruptions. You shouldn’t have to sync data from multiple sources, which can add up to the manual tasks. 

Document Capture and Retrieval

Pick a software that has simple document capture and retrieval capabilities. Attaching or retrieving receipts, invoices, and other relevant documents should not take more than a minute. OCR-based software that detects the information to auto-populate expense reports is better than that requiring manual entry.

Budget Control

Select software that enables specifying budgets for different projects, departments, or expense categories. It should be able to monitor the set budgets and raise alerts in case of breach. It should also allow you to modify these budgets at your discretion, ensuring funds reach the right place at the right time. 

Multiple Payment Options

The software should allow you to configure custom payment options to suit your business needs. This includes credit cards, ACH, or other payment methods.

Scalability and Flexibility

Select software that can accommodate increased usage for growing businesses. It must also be flexible enough to adapt to changing needs, such as new expense categories, compliance requirements, and organizational structures.

The Spend Management Solution for Your Team

Investing in a spend management tool like Pluto is a smart decision that can improve your financial visibility. From set-up to integration and managing intricate workflows, Pluto handles all aspects of spend management. 

• It seamlessly integrates with your current processes, ensuring a smooth transition. 
• It offers flexibility to handle complex operations, catering to the needs of both small and large teams. 
• Its automation capabilities reduce manual tasks and enhance accuracy for better expense management. 

Pluto is the only independently audited PCI DSS Level 1 provider in the UAE, ensuring the highest security standards for enterprises.

Pluto offers a spend management tool that adapts to your evolving needs and provides freedom from financial chaos.

If you want to see how Pluto can transform your spend management into a simpler process, book a demo today.

In today's fast-paced business world, managing expenses can be a daunting task for IT and procurement teams.

To help you out, we compiled a list of features and functionalities that you should consider when picking your spend management platform.

Spoiler alert, Pluto has them all.

PCI DSS Level 1 Provider

One of the essential features that should be given high importance is the product's PCI DSS Level 1 compliance.

The Payment Card Industry Data Security Standard (PCI DSS) is a set of guidelines and security requirements designed to safeguard payment card data. 

The standard was developed by major credit card companies, including Visa, Mastercard, American Express, Discover, and JCB, to ensure that all companies that handle payment card data maintain a secure environment. PCI DSS compliance helps to prevent fraud and data breaches, protecting both the company and its customers.

PCI DSS Level 1 is the highest level of certification a company can achieve for PCI compliance. 

It requires companies to undergo a rigorous independent audit to ensure compliance with all 12 of the PCI DSS requirements, including network security, access control, and vulnerability management. 

Achieving PCI DSS Level 1 certification demonstrates that a company has a comprehensive and effective security program in place to protect payment card data.

When evaluating corporate spend management products, IT and procurement teams should look for products that have achieved PCI DSS Level 1 compliance to ensure that the product meets the highest security standards. 

This will help to ensure that the company's payment card data is adequately protected and that the company is meeting its compliance obligations. By prioritizing PCI DSS Level 1 compliance, IT and procurement teams can help to safeguard their company's reputation and financial well-being.

Being PCI DSS Level 1 compliant is essential for any organization that handles corporate card information, as it provides a high level of security and assurance that the organization is taking all necessary measures to protect its customers’ data.

Pluto Card is proud to be PCI DSS Level 1 compliant. This means that our customers can trust that we have taken all necessary measures to secure their data and protect it from unauthorized access. 

We also partner with vendors who are held to the highest security standards, such as PCI or SOC2 compliance.

Passwordless Login

Passwordless login is a secure and convenient way for users to access their accounts without the need for a password. It is an effective way to protect against unwanted access to your account, as passwords can be easily compromised or stolen. By tying your Pluto access with a company email account provided by your organization ensures that when your employees lose access to their company email address they also lose access to Pluto. 

At Pluto Card, we understand the importance of passwordless login, and we offer this feature to our customers. With our passwordless login feature, our customers can access their accounts quickly and securely, without the need for a password.

Activity Log And Audit Trails

Activity logs and audit trails are crucial for ensuring strict auditing everywhere. An activity log records all user activity within an application or system, while an audit trail provides a record of all changes made to data within the system.

Pluto Card offers a 7-year audit log, which means that our customers can track critical changes made to their data over a seven-year period.

Data Access

Employees that are using our platform have only as much access as they need, and we have infrastructure redundancy built into Pluto, which means that all compute and data is  run in multiple geographies. 

Business continuity is paramount at Pluto - to this end, we ensure data redundancy with redundant backups in multiple geographies as well.

In addition, at Pluto, your application data is always encrypted in transit, and at rest. 

Continuous Security Scans

Pluto also provides a continuous security scan, which tackles multiple dimensions, including code or dependency  vulnerabilities, infrastructure, and public endpoint scans. 

Our customers can be assured that we take security very seriously and are always on the lookout for any potential security threats. 

In the event of a security incident, we have an immediate incident response plan in place and will notify impacted customers without undue delay of any unauthorized disclosure of customer data.

24x7 Customer Support and Dedicated Account Manager

In addition to these security features, Pluto Card also provides 24x7 customer support.

We understand that our customers need support around the clock, and we are always available to help with any questions or issues that may arise.

Data Infrastructure, Redundancy and E2E Encryption

We also provide infrastructure and data redundancy, which means that our customers’ data is highly available and secure, even in the event of a system failure or outage. 

Data is always encrypted in transit, which means that it is always protected during transmission between servers or devices.

Finally, another crucial feature that IT and procurement teams should consider when evaluating corporate spend management products is data residency and retention policies. 

Pluto Card offers an audit trail for changes to customer data, so we can track who did what. 

Additionally, we have a data residency promise of 7 years, which means that we retain customer data for that period of time. 

This can be important for compliance with regulatory requirements, such as tax or financial reporting.

Conclusion

In conclusion, when evaluating corporate spend management products for your enterprise, it’s essential to consider the security features that the product offers. 

PCI DSS Level 1 Compliance, passwordless login, activity logs and audit trails, and data residency and retention policies are all critical features that can help ensure the security and integrity of your organization’s financial data. 

Pluto Card offers all of these features, along with 24x7 customer support and infrastructure and data redundancy, making it an excellent choice for organizations looking for a secure and reliable corporate spend management solution.

For more information  visit Pluto and book a demo.

The month of Ramadan provides HR Managers with the opportunity to take the initiative in their organization and implement a benefit program for employees and to remind them to support their Muslim colleagues during this holy month.

What are the benefits of implementing a Ramadan employee benefits program?

Employees who observe Ramadan may require special considerations in order to maintain a high level of performance.

The main goal of any corporate environment is to get the best possible results, but this can only be achieved if your team is given a supportive environment.

During Ramadan, HR managers and employers should consider implementing employee benefits programs to ensure that their employees are able to fulfill their religious commitments while feeling supported by their companies.  

By doing so, you will help ensure that every member of your team has access to the resources they need to be productive and successful.

‍

Employee benefits program

Flexible working hours

Allow employees to come in late or leave early during Ramadan, modify their hours so they can work when they feel the most energized,and be able to take part in religious activities such as prayers while still being productive at work.

Remote or hybrid work

Remote or hybrid work can provide employees with more flexibility and autonomy to manage their work and religious obligations during Ramadan, allowing them to maintain their productivity and well-being while observing the holy month's spiritual practices.

Set up dedicated prayer spaces

Having dedicated prayer spaces can help employees maintain their spiritual practices during the workday. This is particularly important during Ramadan when employees may need to perform their daily prayers. Providing these spaces can make it easier for employees to observe their religious obligations without having to leave the workplace or worry about finding a suitable location to pray.

Accommodate dietary needs

Provide employees with food options that meets all dietary needs, so they can break their fast at the office if needed.

Examples of foods that are commonly used to break the fast:

• Dates
• Dried fruits
• Ayran (yogurt drink)
• Soups
• Sambusak ( pastry filled with cheese or meat)

Inclusivity

 Promote open dialogue between employees of different faiths to foster an inclusive workplace environment. Consider arranging a presentation for those who would like to learn more about Ramadan and Islam.

Gift and Bonus Programs

Corporate gift and bonus programs during Ramadan can take many forms, but the underlying purpose is to show appreciation to employees for their efforts and to strengthen the relationship between the employer and employees.

Here are some common examples of corporate gift and bonus programs during Ramadan:

Eid al-Fitr bonus

It could be an additional incentive where employers give their employees an additional payment or bonus at the end of Ramadan to celebrate Eid al-Fitr, which marks the end of the month of fasting.

Corporate gifts

Companies may offer gifts such as food hampers, prayer mats, and other religious items to their employees during Ramadan as a way to show appreciation and respect for their faith.

You could also delight your employees with a gift that they can use to enjoy dinner with their families. One way of doing this is by issuing Pluto corporate cards for your employees with an allocated budget on them. For e.g., you can issue a your employee a Pluto corporate card with a 500 AED spend limit to be used a restaurant of their choice.

Charitable donations

Some companies may choose to make charitable donations on behalf of their employees during Ramadan as a way to give back to the community and show solidarity with those in need.

You can add on to that by giving your employees the opportunity to pick what charity they would like the company to donate to.

It's worth noting that corporate gift and bonus programs during Ramadan should not be seen as an obligation or a substitute for fair compensation and benefits throughout the year. Rather, they are a way to show appreciation and strengthen the relationship between employer and employees.

Iftar and Suhoor Programs

Iftar and Suhoor are the two main meals that Muslims consume during Ramadan. 

Iftar is the meal that is eaten after breaking the fast at sunset, while suhoor is the pre-dawn meal that is eaten before the fast begins.

These meals have significant cultural and religious importance, and hosting iftar and suhoor programs can provide a sense of community and inclusivity in the workplace during Ramadan.

Importance of iftar and suhoor programs

Iftar and suhoor programs provide the opportunity for employees to come together and share in the spiritual significance of Ramadan.

These types of activities are also beneficial for team building, as they create an atmosphere of camaraderie among colleagues and foster a stronger work culture.

Its importance can be categorized into three main points:

1. Connection: Sharing a meal with colleagues can help to strengthen connections and build relationships, fostering a sense of community in the workplace.
2. Cultural awareness: Hosting iftar and suhoor programs can provide an opportunity for employees of different backgrounds and faiths to learn about Ramadan and its traditions.
3. Appreciation: Providing meals for employees during these times shows that the company values and appreciates its employees and their religious beliefs.

‍

Examples of iftar and suhoor programs for employees and how to host one:

• Potluck iftar: Organize a potluck iftar at the office, where employees bring their favorite dish to share with their colleagues.
• Company-sponsored iftar: Host an iftar event at a restaurant,  where the company provides food and drinks for employees to break their fast [see list of recommended restaurants below].
• Virtual iftar: For remote workers or those who cannot attend in person, host a virtual iftar.
• Charity iftar: Host an iftar event where a portion of the proceeds goes to a charity or non-profit organization. (Please make sure you are in line with UAE charity regulations before doing so. Learn more here)
• Catered iftar: Hire a catering company to provide a full meal for employees to break their fast [see list of recommended catering companies below].
• Suhoor breakfast: Host a breakfast event before the start of the workday for employees who are fasting.
• Iftar meal delivery: Deliver meals to employees who are working late or unable to attend the in-person event.
• Ramadan decorations: Decorate the workplace with Ramadan-themed decorations to create a festive atmosphere.
• Ramadan trivia: Host a trivia game related to Ramadan and its traditions during the iftar or suhoor event.
• Ramadan volunteer day: Organize a volunteer day where employees can give back to the community during the month of Ramadan.

Prayer programs

Observing taraweeh and Laylat al-Qadr during Ramadan helps Muslims to deepen their faith and spirituality, and it provides an opportunity to reflect on their actions and intentions throughout the year.

An employee prayer program during Ramadan can have numerous benefits for companies and their employees, including promoting diversity and inclusion, improving morale and relationships, and fulfilling social responsibility.

Taraweeh

Taraweeh prayers are additional prayers that Muslims perform during the holy month of Ramadan after the Isha prayer. These prayers are performed in congregation and typically consist of 8 to 20 cycles of prayer, depending on the tradition.

Companies can host taraweeh prayers at a mosque or the office on specific days of the week, such as Tuesdays, to create a sense of belonging and inclusivity among employees.

Laylet al-Qadr

Laylat al-Qadr, also known as the Night of Power, is considered to be one of the holiest nights in Islam. It is believed to be the night when the first verses of the Quran were revealed to the Prophet Muhammad, and it is said to be a night of forgiveness and mercy.

With laylat al-qadr being the most important night of Ramadan, it is important for your company to offer benefits during this day, such as:

• Consider giving the following day as PTO, since most Muslims stay up all night in prayer and reflection.
• Offer a transportation stipend to the mosque in order to show the company’s support of their employees religious beliefs.

• You can do so using Pluto’s platform by offereing a one-time purchase card with a set limit that can only be used with taxis, Careems, Uber or for gas.

Ramadan email templates that can be shared with employees

There is a lot to take care of when preparing for Ramadan. We've put together some sample email templates for various corporate initiatives to make your job easier.

Email Template 1: Announcing flexible working hours during Ramadan

Subject: Ramadan Working Hours‍

Dear [Employee Name],‍

As the holy month of Ramadan approaches, we would like to inform you that we will be implementing flexible working hours during this time to accommodate those who will be observing the fast.‍

Our office will be open from [start time] to [end time]. We understand that some employees may need to adjust their schedules due to the early morning and evening prayers, as well as breaking their fast in the evenings.‍

If you need to adjust your working hours, please speak to your line manager, who will be happy to discuss the best option for you.‍

Our company values diversity and inclusivity, and we hope that this initiative will help our employees observe Ramadan comfortably.‍

We wish all our staff observing Ramadan a blessed month, and may you get the best out of this spiritual journey.‍

Ramadan Mubarak!‍

Best regards,

[Your Name]

Email Template 2: Announcing company charitable donations during Ramadan

Subject: Ramadan Charitable Donations

Dear [Employee Name],‍

As we approach the holy month of Ramadan, we would like to remind you that our company values generosity and charitable giving. In line with this, we have decided to make a donation to [charity name], which supports [cause].‍

We believe that this is a great opportunity to give back to those in need and demonstrate our commitment to making a positive impact in the community. We hope that this donation will inspire you to consider making a charitable contribution during this holy month.‍

Thank you for being part of our company, and we wish you a blessed Ramadan.‍

Best regards,

[Your Name]

‍

Email Template 3: Inviting employees to an Iftar meal

Subject: [Company Name] invites you  to an Iftar Meal

Dear [Employee Name],‍

We would like to invite you to an Iftar meal on [date and time], which will be held at [location]. This event is an opportunity for our employees to come together and break their fasts as a community.‍

Please RSVP to [email/phone number] by [RSVP deadline] to confirm your attendance. If you have any dietary requirements, please let us know, and we will do our best to accommodate them.‍

We hope that this event will be an enjoyable experience for everyone and that it will help to strengthen our company culture.‍

Thank you for your hard work and dedication, and we wish you a blessed Ramadan.‍

Best regards,

[Your Name]

Corporate gifting list

• Sabr prayer mats (https://www.thesabrmat.com/)
• Bateel dates (https://bateel.com/)
• Ramadan themed candles (https://silsal.com/) 
• Kitchen gift set (https://sittisoap.com/)
• Olive oil (https://almisk.ae/) 

‍

Iftar or suhoor restaurant list

• Asateer Tent at Atlantis the Palm
• Sufra
• The Majlis
• Allo Beirut
• Hutong
• Terrace on the Corniche at St. Regis Abu Dhabi
• The Royal Majlis
• Eunoia By Carine
• Bombay Bungalow
• Brasserie Boulud
• Ibn AlBahr
• Al Falak Ballroom
• Karam Al Bahr

Company catering list

• Ogram
• Blast catering
• Eat catering
• The Majlis
• Dish

Conclusion

Ultimately, providing Ramadan benefits demonstrates an employer and HR's commitment to promoting diversity and religious freedom in the workplace.

It also helps create a sense of community among employees that can lead to increased morale, collaboration, communication, and overall productivity.

By offering an employee benefits program during the holy month of Ramadan, employers can show their dedication to creating a supportive and inclusive environment for all of their employees, regardless of faith or background.

Ramadan benefits can thus be an important part of workplace culture, helping to create a positive atmosphere in which everyone feels welcome, respected, and valued.