Leveling the Playing Field for SMB Companies
As recent as 2-3 years ago, financial operation automation was a luxury only large corporations could enjoy. There were few affordable solutions available, most optimization were complex and required application developers and process consultants – both were taboos for most SMB.
Take invoice processing for example, majority of the most efficient, lowest cost organizations are dominated by the Fortune 500 companies. Their invoice volume is much higher, so the efficiency gain and savings can justify the high expense of the automation platform.
For many small-and-medium-businesses (SMB) we worked with, although the organizational structure and the challenges are different, as a % of expense, the pain is no less, the impact of missed payments often higher, and such optimization equally as germane. But the high admission price inhibited their ability to transform.
They often face a distinct set of obstacles. Due to their size, invoicing processing department is smaller, and some may not have dedicated staff. IT department also tends to be less sophisticated, with focus on fighting fires rather than innovation and transformation. Impact due to missed payment is greater due to their smaller leverage, which can negatively affect their payment terms, or it can even cause disruption in daily operation in extreme cases. They are less prepared to cope with peaks in invoice volume, vacations, and turnover due to limited staff. Many executives and owners focus more on operation disruption avoidance rather than sophisticated cashflow optimization.
Given what we discussed, should this invoice automation advantage still be exclusive for the Fortune 500 today? The answer is a resounding no! So what changed?
It is the arrival of purposed-built, cloud-based, automation platform delivering Transaction-as-a-Service (TaaS). Such automation platform eliminated the hurdle for high initial investment and intense resource requirement. It transforms invoice processing by leveling the playing field, delivering savings to SMB in the same fashion it does for the Fortune 500 companies. If one takes the initiative to adopt the technology, one can place their firm within the low cost structure of the top 25% most efficient corporations within 1-3 months.
Our advice is to start a small production pilot to assess the benefits and savings, which are easy to do within the TaaS model. By disrupting this old efficiency-of-scale paradigm, you can level the playing field, and focus on what matters – growing your business.
One last thing you should consider is future-proofing your finance organization? Invoice processing is no longer the static business of the past, there are various emerging technology that could transform the business model in the future. For SMB, they can’t afford to dedicate resources to study enablers such as shared ledger like BlockChain, cryptocurrencies like Bitcoin, innovations like artificial-intelligence, etc… With the TaaS model, the burden of innovation is shifted from the business to the TaaS provider, new capabilities can now be added on-the-fly, and the business can stay at the forefront of technology.
In Juno Payments, we specialize in designing and providing just such invoice automation to large corporations and SMB. Here are some benefit highlights with the true automation unique to our offering:
- MANAGE YOUR SPEND – No up-front expense/resource hurdle. Use only what you need, and only pay for what you use – you only pay per transaction processed.
- INCREASE EFFICIENCY – Reduces man hours spent on invoice processing by 95%, saving you up to 92% in invoice processing cost.
- IMPROVE CONTROLS – Provides real time visibility and control for your invoice operation and cashflow by enforcing your customized workflow & business rules. Inject manual checks where you choose or allow invoices to pass straight through to payment on a designated schedule.
- REMOVE DATA ENTRY & PAPER – Reach 100% effectiveness and accuracy on invoice data extraction
- NEVER WRITE ANOTHER CHECK – Electronically pay an unlimited number of invoices from an unlimited number of suppliers, no need for EDI
- QUICK IMPACT: Provides operational results in 30-90 days
We understand each company’s needs is unique, we offer free consulting to help you chart the optimal adoption strategy and select the right solution. We look forward to an opportunity to work with you to determine what’s best for your company.