With the current economic climate showing signs of uncertainty and unpredictability, it is imperative for VPs of finance and other business leaders to consider implementing Fintech in their operational planning strategies. Tracking KPIs, such as internal spend, makes it easier to prepare for the future. Tracking spend management KPIs will provide specific insight into the company's economic stability. It will highlight areas of weakness and strength and act as a guiding system regarding how to steer a clear course through potentially choppy economic waters.
This article will cover the following topics:
- Current economic uncertainty
- What hasn't been working: Old methods and challenges
- FinTech's Modern Approach
- Where PayEm Comes In
Challenges Facing The Organization
Companies often default to the methods they have previously used, not only because they're familiar with them but also since, for the most part, they have worked in the past. However, the problem with this approach is that organizations are constantly evolving, symbiotic, and continually changing. Maintaining operational continuity and progression is impossible without frequent adjustment, particularly amid ever-fluctuating economic uncertainty. This requires shifting methods, systems, and processes to align with internal and external changes. Sticking to antiquated methods can create a disharmonious work environment and one in which there are many bottlenecks and challenges. Now more than ever, organizations can benefit from improving spend management and increasing operational efficiency by implementing financial technology.
Even in regular economic times, it's vital to holistically consider what's currently working and what's not within an organization. This goes double when considering the uncertainty of present economic times, which include volatile currencies, a remote workforce, and overall unpreparedness for anything other than boom times. Manual systems can impede workflow and multiply errors that companies could have otherwise avoided. With the introduction of automation tools and dynamic fintech solutions, companies can shift gears and enable higher quality data collection, increased transparency, and greater control for improved decision-making.
FinTech's Modern Approach
One of the best solutions to old-fashioned modalities is financial technology. With Fintech's modern approach, businesses can take operational efficiency to the next level and improve cash flow. It is easier for companies to improve spend management while increasing overall profitability. With the right fintech tools, which connect disparate elements of a company’s tech stack, business leaders have the visibility and control they need to steer the organization in the right direction.
Reliable KPIs - Creating a cost-saving spend management strategy
There are many different ways to safeguard the bottom line in uncertain times. One of the best ways to do this is to develop and deploy an effective spend management strategy. With this approach, an organization doesn't just explore how to increase their profits, but also how to reduce costs. Conversely, implementing the right FinTech solution can actually save businesses money. Either way, this is a more long-term holistic approach and an effective and profitable method that ultimately improves the company's operational efficiency. Looking at the spend management KPI and creating an effective strategy allows management to better manage profitability regardless of the economic climate.
Boost revenue without adding costs for better operational efficiency
Increasing revenue without adding costs is possible with the implementation of financial technology tools. These tools provide insight and transparency into key metrics that allow for more accurate and effective spend management decisions. Learning where unnecessary costs are draining profitability is much easier with fintech tools that can provide the exact data and metrics needed.
It's vital that an organization's decision-makers act now and not wait to invest in fintech solutions that can make a difference. With the right technology, a business can effectively increase revenue and profits without adding extra costs. The result is better operational efficiency companies retain more of their earnings without losses.
PayEm - The fintech platform for uncertain times
Regaining control of one's operations begins with taking stock of the current situation and making necessary changes. These changes can mean using technology to improve processes and systems that ensure stability. In times of economic uncertainty, it's essential to use a modern approach that automates and connects all financial operations. PayEm is a robust and dynamic platform that does all of this and more, with a focus on connected finance. From request to reconciliation, business leaders can have full control and complete visibility while staying fully connected in every process.
PayEm is the solution a business needs when too many economic variables create instability. With PayEm, a company can rely on trusted KPIs to achieve greater insight and, therefore, greater control. With access to reliable KPIs, an organization can finally move forward with strategic decision-making instead of just hoping for the best.
Improving Cash Flow & Streamlining Expenses
Improved cash flow can arise from creating new products and services; however, this tends to add costs. Another option for improving cash flow is better spend management, which doesn't require additional fees. Fintech tools can significantly assist with spend management, which helps to improve cash flow and streamline expenses. One of the often-overlooked areas of spend management concerns a reduction in indirect spend. PayEm can help identify areas of indirect spend, which refers to any spending that doesn't directly contribute to the distribution or manufacturing of a product. Identifying and reducing indirect spend can help improve cash flow by as much as 22%.
Gain The Right Advantage With Integrated Solutions
In times of economic uncertainty, companies need to be in a position to make effective and fast-moving decisions that benefit their overall operational efficiency. Finance teams cannot afford to undergo manual and inefficient operations on a daily basis. Instead of spending time with error-prone and outdated modalities, business leaders and finance teams can benefit from using integrated software, like PayEm, that helps them gain proper footing when the economic climate is unpredictable. PayEm's Solutions Include:
- Spend management - Provides a complete history of outgoing subscriptions and payments on all accounts by department, category, and subsidiary.
- Visibility - Offers complete visibility into every financial area and process within an organization.
- Automated approvals - Streamlines the approval process to prevent bottlenecks, improving operational efficiency.
- Responsive dashboard - Offers immediate access to spend forecasts and provides critical insights to aid decision-making.
It's best not to wait in the face of unstable economic times. Instead, take charge by implementing the most effective and modern approaches. The right financial technology can make the difference between staying afloat and thriving in a challenging economy. Contact PayEm's experts for a commitment-free, no-cost demo of the platform.
Jordan A. W. Steinberg