# How to Choose Spend Analysis Software: A Buyer's Guide > What to evaluate in spend analysis software, the questions to ask every vendor, the red flags to watch for, and how to run a Proof of Value on your own data. Source: https://www.spendcraft.com/spend-analysis/how-to-choose-software/ Buyer’s Guide # How to choose spend analysis software. What to evaluate, what to ask, and how to prove it. Most spend analysis tools look alike in a demo. The differences show up in the data foundation, in where the numbers come from, and in what happens after the chart. This guide covers what to evaluate and how to test it on your own data. [Book a demo](https://outlook.office365.com/book/BookaDemo1@spendcraft.com/)[Start a Proof of Value](https://www.spendcraft.com/get-started/) What to Evaluate ## Eight things that separate the tools. ### Data foundation How the tool normalizes suppliers and items, classifies spend into your taxonomy, and recovers detail your ERP dropped. Everything else rests on this. ### Your taxonomy, not theirs Can you use your own taxonomy, keep more than one, and reclassify on demand without a new implementation? ### Where the numbers come from Are figures produced by deterministic calculation from your data, or can an AI model generate them? Ask to see the line between the two. ### What happens after the chart Does the tool help work a renewal, a price increase letter or a duplicate payment to a decision, or does the work move back to spreadsheets? ### Savings finance will accept Baselines, price separated from volume, ranges until confirmed, and a trail back to actual spend. ### Effort for your team How much IT work the connection takes, who runs the product day to day, and whether business users can use it without an analyst. ### Security evidence Independent reports, not promises: SOC 2 Type II, penetration testing, data isolation, and single sign on. ### How you buy it How pricing is measured, what a pilot covers, and whether you can prove value on your own data before committing. Questions to Ask Every Vendor ## Ask these before the second demo. ### Can we see it on our own data before we sign? A demo on sample data shows the interface. A Proof of Value on your own spend shows whether it works for you. ### Who does the classification work, and what do we review? Ask what the vendor does, what your team reviews, and how long a reclassification takes when your taxonomy changes. ### Can any number in the product come from an AI model? The right answer is no. AI can read, narrate and suggest. Figures should come from calculation on your data. ### What happens when data is missing? It should show as missing. A tool that fills gaps with estimates will eventually put a guess in front of finance. ### Is our data used for anyone else? Ask about cross customer benchmarking and model training, and ask for the answer in the contract. ### What does the security review need? Ask for the SOC 2 report date, the penetration test summary, the extract template and the connection options before IT asks. Red Flags ## What to watch for. ### Savings promised before seeing your data A figure quoted before your spend is loaded is a sales number, not an analysis. ### Point estimates with no method A single savings number without a baseline or a range rarely survives finance review. ### Classification as a one time project If changing the taxonomy means a new statement of work, the data will drift out of date. ### Answers you cannot trace Every figure should lead back to the transactions behind it. Prove It ## Run a Proof of Value, not a bake off. A short, scoped test on your own data tells you more than any feature list. Step 1: Pick one scope One category or one moment, such as a renewal or a price increase letter. Step 2: Share one extract A year of spend from one system is enough to start. Connect live systems later. Step 3: Agree the measure Decide with finance what a good result looks like before the work begins. Step 4: Work it to a decision Judge the tool on whether the decision is better and faster, not on the demo. Weighing the kinds of solution first? See [software, consultants or BI](https://www.spendcraft.com/spend-analysis/options/). Ready to see how SpendCraft answers these? See [SpendCraft spend analysis software](https://www.spendcraft.com/spend-analysis-software/) and [how to buy](https://www.spendcraft.com/how-to-buy/). Related reading: [Spend analysis, explained](https://www.spendcraft.com/spend-analysis/) [The IT review your spend tool has to pass](https://www.spendcraft.com/blog/it-review-spend-tool-has-to-pass/) [What is spend classification?](https://www.spendcraft.com/blog/what-is-spend-classification/) ## Test it on your own data. A Proof of Value works one category or one moment end to end. [Book a demo](https://outlook.office365.com/book/BookaDemo1@spendcraft.com/)[Start a Proof of Value](https://www.spendcraft.com/get-started/)