Software has become one of the largest and fastest-growing cost lines in many organizations, yet it is often reviewed only once a year, at budget time. Ten questions give a CFO a quick read on whether that spend is under control, and where to push.
$4,830average SaaS spend per employee in 2025, up 21.9% in a yearZylo, 2025
70%of SaaS spend is controlled outside ITZylo, 2025
45%of organizations spent more than $1M on software audits in three yearsFlexera, 2025
Four numbers to ask for first
Exhibit 1
The ten questions
| # | Question | A good answer |
|---|---|---|
| 1 | What do we spend on software in total? | One number, including card and expense spend |
| 2 | How much of it is under management? | Above 90%, with a list of exceptions |
| 3 | How many licenses are used? | Utilization per major product |
| 4 | What renews in the next 12 months? | A calendar with notice deadlines and owners |
| 5 | What auto-renews without review? | Ideally nothing above a threshold |
| 6 | What did we save this year, and how is it measured? | Realized savings, confirmed by finance |
| 7 | Where do we have overlapping tools? | A short list with consolidation plans |
| 8 | What is our audit exposure? | Positions for the publishers most likely to audit |
| 9 | How are AI and consumption costs controlled? | Budgets, alerts and owners |
| 10 | Who owns software spend? | Named owners per vendor and a clear RACI |
What good looks like on one page
Exhibit 2
Warning signs
Signs of control, signs of leakage
Do
- One figure for total software spend, produced in a day.
- A renewal calendar with notice dates and owners.
- Savings reported as realized, confirmed by finance.
- Utilization known for the largest products.
Avoid
- No single figure for total software spend.
- Renewals discovered when invoices arrive.
- Savings reported but not visible in the budget.
- Several teams paying separately for the same tool.
How MI One helps
Frequently asked questions
How often should the CFO review software spend?
Quarterly, with a deeper review during budget planning.
Who should present the answers?
IT and procurement together, with finance validating the numbers.
What is the first thing to fix if the answers are weak?
Ownership and notice dates for the largest contracts. Most other improvements depend on them.
Sources
- Zylo, "2025 SaaS Management Index," January 16, 2025. https://zylo.com/news/2025-saas-management-index
- Flexera, 2025 State of ITAM Report press release, June 18, 2025. https://www.flexera.com/about-us/press-center/it-teams-losing-visibility-according-to-flexera-2025-state-of-itam-report