Major Business Challenges and How to Overcome
Despite being one of the most integral parts of any business type, tedious manual invoicing is taking a toll on firms due to its structural inefficiency. Invoicing gains prime importance in a business since it acts as a medium for revenue collection. But what would happen if this medium is itself full of inherent flaws and is too inefficient to extract maximum utility?
As per researches, 56% of businesses experienced cash flow forecasting problems due to AP issues. The poor cash flow in any business could be attributed to some of the prime reasons such as:
1. Late Payment Stands Top among Global Business Challenges
Late payments are a huge deterrent to the healthy cash flow of a business. Any delay in receiving your payments makes a cascading effect on your account sheets leading to a cash void at the end of the month. Take this as an example to understand how much late payments can affect you. Businesses in the Americas lose 51.9% of the value of their B2B receivables that are not paid within 90 days of the due date.
2. Ineffective AR & AP management is one of the Common Business Challenge
There’s no doubt in the fact that balanced sheets are the biggest satisfaction for your accountant at the end of the month. On average, 3.6% of invoices have errors, probably due to manual data entry. Clearly, even a minor data discrepancy could lead to a disastrous effect on your account’s health.
3. Inefficient Expense Management
Management of your expenses is as necessary as maintaining a keen record. Taking acute notes of where your money is being spent is absolutely necessary in order to efficiently forecast your expenses and plan beneficially for your business.
4. Chaotic Client management
Entertaining a huge client base seems like a great idea especially since more clients will bring more revenue. This may seem like a win-win situation for you, but maintaining a healthy relationship along with proficient customer satisfaction is something which many aim for but are unable to achieve. 90% said they regularly had phone calls from suppliers chasing payments. In the absence of a proficient invoicing setup, things could become chaotic if not managed properly.
5. Fizzled finances and its forecasting
Every business model thrives on a well built and well thought financial structure that aims to derive maximum utility from the present resources. Finance management and its forecasting are fundamental for the holistic growth of a business. 55% of SMEs find cash flow to be the biggest hurdle in their path to success while over 40% point to an increase in their working capital requirement compared to the previous year as per researches.
6. Managing Multiple Client Accounts
Getting multiple client accounts on board may seem like a great idea, but what follows is an absolutely necessary step to managing them proficiently. It is suggested that more than 86% of buyers are willing to pay more in return for excellent customer services, thus making it one of the key areas for improvement.
7. Payment Management
Businesses have to make it as convenient as possible for vendors to facilitate smooth payments and transactions. In the case of an ineffective payment receiving system, this could lead to a chaotic bottleneck like situation rendering hampered cashflow which adversely affects the health of the company.
8. Data Security
According to Gartner, worldwide spending on cybersecurity is forecasted to reach $133.7 billion in 2022. The importance of data security could be estimated through the extent of money, businesses are willing to spend in order to keep their data secure. Much of this expense could be reduced when you employ a bespoke custom invoicing software that can provide you with super secured data hosting.
9. Limited Integrations
Outsourcing your business processes is still deemed as unsafe, hence most of the companies nowadays are looking to host software in their existing legacy systems and integrating their processes with important platforms such as Magento, Shopify, etc.
10. Custom Workflow Management
Business efficiency is an important aspect to determine the value of any firm. The workflow hierarchy of a process as complicated as invoicing has to be simplified in order to ensure timely completion of projects undertaken. If not established well enough then even the meager processes would take a lot of time leading to a burdening effect on your ROI.
By now you must be clear about the challenges your business may face if it doesn’t adhere to new technological innovations and advancements. We understand the needs of your business and how it can be resolved with the help of an expert custom billing software like Invoicera.
Invoicera is an all-in-one custom billing software that simplifies your whole process of invoicing. With several years of experience and 3 million users worldwide, Invoicera bridges the gap between your conventional invoicing and business automation through its brilliant features which automate and simplifies your whole business.
Banking on our years of expertise, Invoicera has helped several industries in simplifying their business processes. Right from helping travel agencies to manage their recurrent invoicing to simplifying expense management for a hotel firm, Invoicera has effectively bridged the gap in their invoicing and automated it to extract better utility. We have served various industries like: Travel, Hotel, Transport, Digital Agencies, IT and many more domains and looking forward to extending our reach to new domains.
We have always strived hard to cater to a wide network of clients and resolve multiple business issues that were put in front of us. Here are some of the case studies to help you relate with our work and describe how Invoicera helped several business owners from different domains.
Originally published at https://www.invoicera.com on January 16, 2020.