“I can” syndrome may not be recognized by the medical community, but it’s a condition that affects millions of small-business owners and other company leaders each year.
When managing a business, you might confidently proclaim:
“I can make the product.”
“I can deliver the service.”
“I can manage the financials.”
Sure, it’s possible you can. But you don’t have to – nor should you want to.
After all, you have plenty of responsibilities, and taking on more than necessary could negatively impact both your individual and company performance. Mishandling your financials could be especially harmful, and could lead to serious cash-flow problems.
Automated accounts payable invoices management can help you avoid that risk. By gaining greater visibility to determine the true value of your expenses and control costs with a more sophisticated accounts payable solution, you can cure your case of “I can” syndrome and transform your company into a more viable, strategic business.
Determine the true value of expenses with a precise picture of your cash flow
Baseball has a long, storied history. For decades, home runs ruled the sport. But in 2002, one man changed all that.
Oakland Athletics General Manager Billy Beane decided to shun conventional wisdom and emphasize on-base percentage over long balls. He theorized he could assemble a competitive team – at a fraction of the price – by signing players who excelled at walking and getting base hits instead of hitting home runs.
While the approach didn’t result in a World Series title, the A’s won 103 games in 2002 – tied for the most in baseball.
If there’s one thing you can learn from Billy Beane’s experiment, it’s this: Your business doesn’t always have to swing for the fences. There are smaller, alternative steps you can take to usher in victories.
For instance, consider your vendor costs. The Pareto principle says 80% of expenses come from 20% of vendors. So, a small portion of vendors account for a huge share of your business costs. And while it’s important to have insight into all your company’s expenses, it’s particularly crucial to understand where the vast majority of your money goes. And if you need to manually refer to a clutter of sloppy spreadsheets to do that, you’re bound to have a tough time.
An automated invoice management solution can provide you with a precise picture of your cash flow so you can build a strategy around optimizing vendor relationships, getting the best rates, taking advantage of discounts, and investigating ways to cut costs.
If your business can accurately visualize its spending and negotiate even a 1% reduction in vendor fees, it’ll do wonders for your profit margins. And by getting to the bottom of your finances, you can strategically analyze your spending habits, determine the true value of your expenses, and make better business decisions that positively impact your bottom line.
Control creeping costs with better cash-flow visibility
Parkinson’s law states that as a resource’s availability expands, the more people consume it.
Think of it like a tube of toothpaste: If you’re using a brand-new tube, you’ll likely squeeze a large bead of toothpaste onto your toothbrush. But even when your tube starts to empty, you can still manage to extract what you need from it to get the job done.
Businesses often view a full wad of cash like a brand-new tube of toothpaste: The more money they have at their disposal, the more they’re willing to spend.
One way many small businesses spend their money is on new software subscriptions. Companies see an influx of cash and decide to buy antivirus software, CRM software, and more.
While these purchases seem essential in the moment, they can lead to insidious costs – particularly if a business stops paying attention. Unused software subscriptions could end up costing your company hundreds of thousands of dollars each month.
When processing invoices manually, you may lack the clarity you need to see how much money unused software subscriptions drain from your bank account. You may not even know when those bills are due or paid.
Automating your AP invoice processes makes these expenses more tangible. And it’s only when you can observe these financial losses that you can truly experience and appreciate their pain.
An automation solution shines a light on creeping costs like this, allowing you to take the necessary steps to cancel the subscriptions, eliminate the unwanted fees, and start steering your company’s financial future in the right direction.
Get finance right with automation
Whether you’re capable of managing your business’s financial processes or not, it’s better off you find someone – or something – to help you do so. You have other duties. And doing it right is what’s most important.
Automating your AP invoice processes provides an opportunity for your company to manage its finances with precision. Not to mention, the business benefits are undeniable.
According to a new white paper by AMI-Partners in partnership with Concur, How Finance Leaders Save Money and Drive Growth with Automated Invoicing, automation tools enable businesses to save $1,100 for every 100 invoices and reduce invoice processing time by 16% a week.
Now, just imagine how much that extra time and money could help you grow your business.