How Can Your Business Transform Through Digital?
What is a Digital Solution and why is there a need?
A question that is on most bookkeepers, accountants, and businesses' minds. A ‘Digital Solution’ is a term used to describe a solution that incorporates the use of digital technology to solve a problem for all sized businesses, including SME’s and Start-ups. The word ‘Digital Technology’ ranges from FinTech (used to describe tech that seeks to improve and automate the delivery and use of financial services) or general marketing technology, such as a CRM database to help assist with generating client leads.
Having a Digital Solution in place, not only means that business owners can view real-time information on the core elements of their business, but it will improve efficiency, help save costs and give an insight into where key improvements can be made to assist with planning for the future, all on the go.
I have recently been working with a client, who is a start-up and has opened a health service and smoothie bar to the public and required a digital system that allowed him to manage everything in-house, such as appointments, loyalty schemes, and card payments. After much research and comparison of different fintech software's, we decided on one which will provide the business with its requirements and will also assist in the business growth and development. This is a perfect example of how businesses can transform their systems and processes through the powers of technology. This business now runs more efficiently and allows the director time to spend ON the business, instead of working IN the business.
Following on from the above, here at Raffingers, we specialise in the cloud accounting software, Xero. An example of a generic bookkeeping system can be as follows:
- bank transactions, purchase invoices, sales invoices and expense reports are created and uploaded manually to the system
- over 100 debtor invoices are overdue and being chased manually via email
- timesheets are being completed via pen and paper
- a payment system is being used for in store and online sales but does not sync with Xero, meaning it is hard to reconcile and must be allocated manually
- cash flow and business position in 5 years’ time is unknown
- unknown stock total and having to estimate due to not having a system in place
Though this may work, the amount of time that is spent on these tasks can be reduced significantly, just by introducing additional digital solutions into the mix. Reducing the hours spent on bookkeeping each month, can free businesses up to build that new department within the business, plan the next big project, or better yet, take some personal time out and go on that dream holiday without having to worry about the amount of work to come back to! By automating, you are limiting risk, improving financial data, and improving cash flow.
Cloud software such as Dext, Chaser, Pleo, Xero Timesheets, Futrli, Dear Inventory, and Square can automate the current bookkeeping flow and help businesses keep on top of financial data and plan ahead for the future. Not only do they sync with Xero, but also many other cloud accounting software’s too. As mentioned when starting this article, Digital Solutions is not just about a bookkeeping system structure, but also about the internal structure within a business. Every business wants to ensure that they are marketing correctly, generating leads, having one system where internal information can be saved along with contacts, invoices, and wins. Along with ensuring that their in-house team is being managed correctly and can easily communicate.
The CRM system, HubSpot will take care of the marketing and conversion of leads, whilst Monday.com and Office 365 will assist with the management and communication side of things.
Goodbyes are the days of manual data entry and hello to Digital Solutions!
The ideas on Digital Solutions are endless. If you would like to discuss your current bookkeeping structure or receive a FREE Cloud Health Check, please do not hesitate to contact me at emma@raffingers.co.uk or click here.