Spending analysis is the process of reviewing and evaluating an organization's expenditures to understand where money is being spent. This analysis helps identify trends, patterns, and areas for potential savings. By examining categories such as suppliers, departments, and products, organizations can make informed decisions about budgeting and resource allocation. The goal of spending analysis is to improve financial efficiency and support strategic planning. It often involves using tools and software to collect data, generate reports, and visualize spending patterns. Ultimately, effective spending analysis can lead to better financial management and increased profitability for businesses.