Every successful business does a good job controlling their money flow. They keep an eye on what’s coming in and what’s going out, and they don’t miss very much.
But what they do miss can be money leakage that disguises itself as a necessary expense, or that’s hidden in the smoke of inefficiency. The businesses who track down these costs and eliminate them are the ones with the best path for success.
If that sounds like your business, and you’re never satisfied that you are as efficient as you can possibly be, then you want to dig a little deeper to find those dollars that are escaping your grasp and hurting your profitability.
You’re in good company. Clients of DataServ are finding that their in-house accounts payable, human resources, and accounts payable systems just weren’t reaching their high standards for performance. By utilizing a computerized system for management, they began saving money right away. Here are some of their particular areas of improvement.
Specialization is key to efficiency. Many small business operators pride themselves in being able to do all the normal business tasks themselves. But they need to think about whether that’s really the best option.
The truth is that the more you do something, the better you do it. When you’re only spending a day or two each month handling accounts payable, you won’t be as fast or as accurate as you would with a daily routine involving the bills. Errors are time-consuming and costly, so you are typically much better to utilize a pre-built system to manage these systems for you.
Meticulous Paper Trails
There’s no disruption quite like the one that pulls you from one task into a totally different task. By the time you disconnect your mind from doing sales and connect it with accounts payable, your creditor is getting very agitated with you. And that’s assuming you can find the information you need.
With a software system handling these functions, you’ll have an organized method of taking care of all the records. When the check hasn’t arrived, you’ll be able to provide a document number, mail date, and other information to confirm that payment was made. The same is true of hiring and termination forms, account collections, and all the other necessities of business.
You may be very proud of the various spreadsheets and other hacks you’ve developed to keep your business system afloat. The problem is that you’ve designed them as an afterthought to countless other needs, and the proper upkeep of your system is almost as demanding as its initial construction.
A management software system will eliminate the need for constant review and updating of your system, reducing errors and eliminating the time you once invested in them.
In entrepreneurship, there’s always a delicate balance between what you should do yourself and what you should pay for. Certainly in those garage-shop days you’ll manage most financials yourself, but it won’t take long to make it worthwhile to invest in a software system to keep your business financial leakage to a minimum.