Despite the turn of the year, 2012 looks set to be another year of austerity and cost reductions. Several well known names from the UK high street have set the tone by reporting less than impressive Q4 results and some are even entering administration.
Here are five suggested ways to reduce operational costs through increased backroom efficiencies.
- Adopt e-Invoicing
By converting to digital invoicing, a business can make immediate savings on staffing, stationary, postage. Factor in slightly less tangible factors such as time and the argument for e-Invoicing is hard to ignore when investing to make greater savings.
- Create dynamic pricing and discounting structures
Offering customers discounts for settling payments early may reduce profits, but a healthy cash flow and balance book is preferable to a sheaf of outstanding invoices. A scale of sliding charges and fees can require intensive intervention to oversee however, so companies introducing such a system should look at implementing our third recommendation simultaneously.
- Automate your workflow
To combat costly human error, introducing automation can speed each step of the payment process by removing the need for manual intervention. The less manual processing that is required, the smaller the margin for error and the less workforce required for accounts payable.
Bring your financial operations into one department. Managing finances across different departments is time consuming, and if time is money, delays in financial processing cost your business. Cut the delays by bringing financial control into a single centralised location and you will recognise associated cost savings.
- Digitise your paper
Your clients may not have an electronic invoicing and payments systems and so they will continue to return physical paperwork. As a result you will need to find a way of capturing this information and getting it into your own accounts system.
Using an electronic invoicing platform like Celtrino’s Smart Admin can help achieve each of these goals and thereby slash costs as a result. Interested? Get in touch to find out more!