Meeting economic challenges through automation

Small businesses across the UK are facing several major headwinds, making it the most challenging operating environment in many years.

Inflation is in double figures, higher than it has been in decades.  In response, the Bank of England is raising interest rates, pushing up the cost of borrowing.

Higher energy prices are squeezing companies’ bottom lines, and rising prices across the board are putting staff under pressure, too, as they struggle to pay bills.

Following the latest base rate increase in May – from 4.25% to 4.5% – the Federation for Small Businesses (FSB) warned that further rises risked “entrenching the economic damage to small firms” and limiting their ability to grow or invest.[i]

FSB data show that costs for small businesses were higher in the first quarter of this year than 12 months previously, with two out of every five small firms polled reporting a fall in revenue.[ii]

With many companies turning their attention to managing costs, at Quadient, we believe automation can make a real difference at a crucial period for UK businesses.

Automating to manage costs

More than half of businesses still use manual data entry[NR1]  for processing invoices. This is a significant disadvantage from a cost perspective – it’s been estimated [NR2] that each manually-processed invoice costs around $15 (£12), versus less than $3 for an automated process.

At a time when cutting unnecessary costs could make the difference between growing your revenue and shrinking it, isn’t it time you considered automation for payments?

By using advance computer software to automate repetitive tasks such as invoice entry and processing, companies can make their accounting departments much more efficient.

Digitising records can also help give company leaders and finance managers an accurate and up-to-date picture of income and expenses, as well as highlighting any ‘pain points’ such as late invoices.

Fraud is on the rise too. Two thirds (64%) of UK companies reported being victims of fraud across 2020 and 2021, according to PwC,[iii] while the total value of fraud cases in the 12 months to the end of November 2022 was £1.1 billion, according to BDO.[iv]

Digital record-keeping and processing technology can help identify various kinds of fraud, flagging suspicious activity early for review – potentially saving companies from financial loss and reputational damage later down the line.

Keeping people happy

During a cost-of-living crisis, many workers will find themselves worrying about paying bills or managing expenses.  By cutting costs through automation, you may find you are able to offer your staff greater financial support through this difficult time.

It’s estimated [NR3] that a typical accounts receivable staff member will spend a quarter of their time on repetitive manual tasks.  By removing repetitive tasks from their workload and refocusing their time on value-add activities, you can improve job satisfaction and alleviate some of the work-related stresses they may be feeling.

Keeping staff feeling happy and supported in the workplace can also improve staff retention, reducing the likelihood of having to undergo expensive recruitment processes.

Quadient’s software-as-a-service approach to payments automation provides an affordable way for small businesses to access a robust, cutting-edge cloud-based software solution.  Contact us today to find out how our solutions can help you make your accounting operations more efficient.