You did it! After careful research and tough negotiations with the vendor, you signed a contract for an exciting new application.

But fast forward to year-end, and you realize your company spent more than what was outlined in the contract. How did this happen?

Unfortunately, the actual costs of SaaS often go beyond the initial agreement—especially with usage-based pricing or true-ups, which have become more common with SaaS in recent years. That means that surprise expenses have become, well, unsurprising. Vendors will always try to get more revenue from existing clients. So, you must protect your company’s bottom line by identifying these expenses immediately.

Now In Torii: Detect Expenses Exceeding Contract Value

In Torii, we’ve made it easier than ever to spot those surprise expenses by providing a clear comparison between contract value and actual expenses. This enhancement allows you to monitor your SaaS spending continuously, giving you a clearer view of where costs might spiral beyond expectations.

Why You Should Care

The gap between contracted pricing and actual expenses can quietly drain your company’s budget. Hidden costs—like usage-based pricing—pile up fast, often catching teams off guard. By comparing contract values with actual expenses, Torii allows you to spot potential overspending quickly and take action.

Even if you’re not directly accountable for the budget, catching these expenses early can help you stand out in the workplace. In a busy environment where it’s tough to get noticed, showing that you’ve helped prevent surprise costs is a simple way to earn respect and appreciation. Torii’s alerts make it easy to do just that.

Now that we understand why tracking these costs matters let’s look at how Torii helps you monitor these expenses in real-time.

Going Deeper: How It Works

  • Your SaaS system of record: Torii consolidates all your expense data and contracts using AI-powered tools and integrations, so everything is in one place.
  • Your complete application list: Complete Application List: Torii provides a full list of applications, including sanctioned SaaS, shadow IT, and desktop software, with data columns for:
    • Active Contracts Value: The agreed amount for the active contract.
    • Expenses (Active Contract Duration): The actual costs incurred over the contract duration.
    • Expenses Compared to Contract Value (%): Shows percentage comparison between expenses and contract value, indicating whether expenses are over or under the contract value.
  • Drill Down for Each Application: On individual application pages, Torii displays a yellow warning icon when actual costs exceed the contract value. Hover over to see a detailed explanation, with links to both the expense breakdown and the active contract.
  • Customizable Alerts: Set up a workflow in Torii to send notifications when expenses exceed a defined threshold (e.g., a percentage over contract value). These alerts can be sent via Slack, Email, or ticketing platforms like Jira and Freshdesk.

Best Practices for Managing SaaS Costs

  • Create Workflow-Based Notifications: Set up alerts through your preferred communication channel (slack, email, or ticketing platform) for when expenses reach certain thresholds during active contract periods, ensuring you can stay ahead of potential overspending.
    • Ensure all relevant stakeholders are alerted, and add branches and conditions to your workflow depending on impacted departments or specific thresholds.
  • Configure Alerts by Percentage: Customize alerts based on a percentage of contract value (e.g., notify when expenses exceed 10% of the contract) so your team isn’t overwhelmed by small fluctuations but is alerted to significant changes.
  • Ensure You’re Ready for Renewal: The contract in question might not be up for renewal yet, but ensure you record the details to discuss the expenses with the vendor at renewal negotiations. Perhaps include terms in the contract to protect your organization from unexpected expenses.

The Bottom Line

Start using Torii’s new expense tracking feature today to prevent overspending, improve budget forecasting, and protect your company’s bottom line.