How to Track Budget and Fulfillment Under a Vendor Contract (MSA)
Vendor contracts, especially long-term Master Service Agreements (MSAs), can easily go off track if you’re not actively monitoring budget and deliverables. Here's how small and mid-sized businesses (SMBs) can stay in control with Aptien contract management:
- Automate reminders for key milestones or renewals.
1. Set and Monitor the Budget
- Define the total spend cap and any specific limits (monthly, quarterly, per service).
2. Track Deliverables and Timelines
- Break down the MSA into specific services, timelines, and deliverables. Use a simple task management or contract tracking tool to:
- Track real-time spending against the budget using Expense logs
- Vendor invoices
- Linked purchase orders
- Monitor progress
- Tool Tip: Look for platforms that offer budget alerts when thresholds are close.
3. Conduct Regular Reviews
- Set monthly or quarterly reviews to evaluate:
- Actual spend vs. budget
- Fulfilled vs. outstanding deliverables
- Vendor performance
- Document any changes and renegotiate terms if needed.
4. Keep an Audit Trail
- Ensure that all approvals, invoices, and communications are logged. This protects you in case of disputes or audits.
Recommended Tools for SMBs
- Aptien (customizable contract and budget trackers)
- Zoho Contracts
- ContractWorks
- Concord