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Budget management | 4 Min Read

Financial tips for SMEs to save money, time & reduce stress

Written by:
Neil Robertson on November 2, 2020

    

Save money, save time, reduce stress

As we navigate in and out of lockdown and into a challenging new world order, every business has to rapidly evolve if they are to survive and prosper in the recessionary market that awaits us.

Whilst there are many steps business can take, there is one that is truly transformational in terms of productivity gains, reducing costs and ensuring the business conserves cash to weather the storm.

Just automate the purchasing and accounts payable process and buy as much as you can online through the Amazon Business marketplace.

Here are our top financial tips for SMEs looking to weather the storm and prosper in the new world:

We can help identify areas in your organization where you can reduce business  costs and spend smarter. Find out how by taking our free spend review today.

 

Financial tip #1: Save money by buying everything online through Amazon Business

We all know why we buy from Amazon: it is convenient, highly competitive (their supplier marketplace offers us the most choice of products, the best prices, and ranks both products and suppliers so we can make the best use of our money) and is very easy to use.

In terms of our time, choice and cost, Amazon delivers “Best Value”.

Amazon Business does the same for businesses: based on a detailed spend review of $300k aggregated spend from 5 of our customers across multiple suppliers and thousands of products, buying via Amazon Business is likely to save you between 15% - 30% on the vast majority of purchases you make with your current suppliers.

Why? Because the Amazon Business marketplace and its associated algorithms are designed to present to you the best value options across millions of products by enabling their suppliers to proactively compete for your business.

“Prove it!” I hear you say. We have, and the analysis (provided by Amazon Business and verified by our spend consultants) is available here. Still sceptical? Then just grab a handful of your existing supplier invoices and check for yourself. We are not claiming that everything is cheaper, but across a wide area of spend you will save between 15% - 30% of what you are currently paying to other suppliers.

 

 

Financial tip #2: Save time by automating your purchase order and approval process

Everyone outside the finance department would love to buy from Amazon Business. It is simply more convenient and can be done from any device.

For finance, every purchase from Amazon Business (and any other supplier) automatically generates a “requisition” – the request to buy – which can be approved before the purchase is made.

That delivers finance total visibility and control over purchasing, plus commitment accounting for cashflow forecasting from the moment the purchase is made.

The invoices are automatically captured, matched to the order, coded for the GL and sent for approval. On final approval, they are posted to your accounting / ERP software, followed by a single monthly payment.

This delivers up to a 90% productivity gain over any existing accounts payable process.

What’s more, it also consolidates your suppliers – reducing the number you trade with and the work required to set them up. This also means less credit control calls and approval processes for subsequent payments.

 

Financial tip #3: Reduce stress by having control over all spend before it happens

Every CFO is looking at all options to conserve cash, reduce costs and increase productivity.

Automating the purchasing and accounts payable process and buying more from Amazon Business achieves all three objectives.

In terms of reducing stress, having total control over all spend before it happens, understanding your cash commitments in real time, delighting everyone outside finance to help them be more productive and releasing up to 90% of your accounts payable resources to focus on more important work is a good place to start.

 

Just why are these financial tips important to SMEs?

1) The commercial value

By consolidating your suppliers and increasing your spend through Amazon Business by just $1,000 per month, you will save between $150 and $300, which is more than the cost of automating your purchasing and accounts payable process. The higher the level of spend, the greater the savings. That means more cash remains in your bank account.

Now you might be wondering: “How long does it take to automate?” Well, almost all of our customers go live within 1 – 3 days, depending on their size.

2) The human value

There will be many challenges ahead of us as we all negotiate our way through the coming weeks and months.

Gaining total visibility and control over spend to conserve cash, make savings and increase productivity will reduce the stress levels for everyone involved. It’ll also mean more time is available for your staff to do things that are much more valuable and rewarding for themselves and the business.

 

Prepare your business for the new way of working and get a strategic advantage

Online buying is unquestionably the future of purchasing. Enterprise businesses and the B2C market have been doing it for years, the benefits are not in question.

Enabling your staff to buy online and automate the entire purchase order and approval process will help to reduce costs, save money, increase productivity and put your business in the best position for growth in this new world.

It is now time for every business to take their purchasing digital, simply because now you can.

With our CompleatProcure service, we enable organizations of every size to reduce the costs on what they buy and spend smarter. Find out how you can do the same for your business with our free spend review, just click below.

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