Automation
One way that software can help improve your business is by automating tasks. This can free up time for you and your employees to focus on more important things. Many different types of software can help with automation. For example, there are project management software programmes that can automate tasks such as creating task lists, assigning tasks to employees, and tracking progress. There are also customer relationship management (CRM) software programmes that can automate tasks such as contact management, sales tracking, and marketing campaigns. The experienced developers from a reputable bespoke software development company suggest that you should carefully consider which tasks you want to automate. Not all tasks need to be automated. In some cases, it may be more efficient to do them manually.
Workflow Management
Another way that software can help improve your business is by improving workflow management. Workflow management is the process of organising and managing the steps involved in a task or project. It can help you to ensure that tasks are completed in a timely and efficient manner. There are many different types of workflow management software programmes. For example, there are task management software programmes that can help you to create and track task lists. These are the perfect tools for businesses that have multiple employees working on different tasks. There are also project management software programmes that can help you to manage and track the progress of projects. These are perfect for businesses that have large and complex projects. More often than not, businesses need a combination of both task management and project management software to efficiently manage their workflow.
Reporting And Analytics
Reporting and analytics mean being able to track the performance of your business. This can help you to identify areas where your business is doing well and areas where it could improve. There are many different types of reporting and analytics software programmes. For example, there are accounting software programmes that can help you to track your financial performance. There are also CRM software programmes that can help you to track your customer relationships. Just keep in mind that not all businesses need the same type of software. Some businesses may only need accounting software, while others may need a combination of accounting and CRM software. It all depends on the specific needs of your business.
Communication
Last but not the least, another important aspect of business that can be improved with software is communication. Good communication is essential for businesses of all sizes. It can help to improve employee morale, increase productivity, and reduce misunderstandings. Many different types of software can help with communication. For example, there are instant messaging software programmes that can be used for real-time communication between employees. There are also video conferencing software programmes that can be used for meetings and other events. Choosing the right type of communication software will depend on the needs of your business.
Choosing the right software for your needs
- Consider your business needs
One of the things you need to do when choosing software for your business is to consider your business needs. Not all businesses have the same needs. For example, a small business may not need as much software as a large corporation. This is because small businesses may only need to manage a few employees and a small number of customers. On the other hand, large businesses may need to manage hundreds or even thousands of employees and millions of customers. It’s important to carefully consider the specific needs of your business before making any decisions.
- Get input from employees
Another thing you need to do when choosing software for your business is to get input from employees. After all, they’re the ones who will be using the software. Ask them what type of software they need and why they need it. For instance, they may need software that can help them to be more productive or they may need software that can help them to communicate better with other employees. Getting input from employees can help you to make sure that you’re choosing the right type of software for your business.
- Think about the costs
Of course, you also need to think about the costs when choosing software for your business. Some software can be very expensive, so you need to make sure that you’re getting what you need without spending too much money. Once again, it’s important to consider the specific needs of your business. If you only need a few simple features, then you probably don’t need to spend a lot of money on software. On the other hand, if you need complex features, then you may need to spend more money. However, you may be able to take advantage of free or open source software if you’re on a tight budget.
- Research your options
Finally, you need to do some research before choosing software for your business. This is because there are many different types of software available and it can be hard to know which one is right for you. Talk to other businesses and see what type of software they’re using. You can also read online reviews to get an idea of the different options available. By doing so, you can make sure that you’re choosing the best software for your business.
Choose the right software for your business and you’ll be able to improve the way your business works. With the right software, you can take your business to the next level. Rest assured that with a little bit of research, you’ll be able to find the perfect software for your business needs.
Now, sometimes, no matter how things may appear to be fine, you realise that there’s some room for improvement. Maybe the meetings are not as productive as they used to be, maybe some of your employees are not meeting the deadlines, etc. That means that now it’s time to think of ways that are going to help you make your business more efficient. If you’re not sure where to start, or what to do, don’t worry. These tips will definitely help you out.
Superb Tips To Enhance Business Efficiency:
Focus On Automating Workflows And Processes
Businesses, especially smaller ones, are frequently dealing with repetitive tasks, but the good news is, you can always focus on automating them. Now, a lot of companies avoid this option because they’re afraid of having additional costs and that it will affect the duties of their workers. But the truth is, automating repetitive steps can actually positively impact the production, sales, and distribution process and can enhance the bottom line and allow your employees to focus on other, more important tasks.
Consider Business Incorporation
Everybody is aware of the fact that owning a firm can be potentially very risky, however, if you want to limit personal liability, you can accomplish that by incorporating your company. Although it requires more costs and paperwork, it still comes with several advantages.
So what are they? It doesn’t matter whether you decide to consider incorporating online, or not you will still experience numerous benefits. One of them is that you’ll be able to protect your personal assets. Namely, if you decide to take this step, you will no longer have to worry about risking your homes, savings, cars, and many other things, unlike owners of sole proprietorship who oftentimes have to deal with endless liability for both personal assets and business.
Another huge advantage of incorporation is the fact that it will improve the credibility of your firm plus, your company will become much more stable than those that are unincorporated.
Adding More Useful Information Below:
Stimulate Your Workers To Communicate Face-To-Face
Even though sending an email, or chat message to your employee may seem like a more efficient way of communication, frequently, it can have the opposite effect. How come? Well, it's because you will wait much longer for a response than you would normally do if you chose to communicate in person. Although Skype, Slack, or Google chat are truly incredible tools, face-to-face communication can actually speed up the whole process and enable you to resolve any issue much faster.
Provide Your Employees With The Right Tools
It may sound like the most obvious suggestion, but you wouldn't believe how many business owners aren't providing their workers with the tools that are essential for their tasks. It doesn't matter whether you need tools for a particular project, or for training, do not hesitate to invest in them.
You will soon realise that these things are definitely worth every penny because they will help your workers complete their tasks quickly, efficiently, and accurately.
Prioritise Increasing Your Network
This is highly beneficial for every type of business. Namely, by networking with business owners, professionals, and entrepreneurs from your industry, you'll be able to boost the presence of your company and at the same time, properly promote it.
So what are you supposed to do? Start by joining business associations, contacting business magazines, visiting business-related forums, and attending community events that will allow you to raise awareness of your company. At these events, you will get the opportunity to talk about your services and products, potentially attract new clients and consumers and generally give more details about your brand.
Do Your Best To Keep Current Clients Faithful To You
Now, you may think that you're giving your clients the best possible solution, however, that may not always be the case. If you want existing clients to stay, then you have to make sure you are providing them with a service that's much better than the competition.
There are simple, yet effective steps to help you accomplish that, like educating your workers, instantly responding to messages and emails, upgrading your policies, and many other things.
Often referred to as the ‘gender investment gap’, this issue really matters because many women are likely to face a significant financial shortfall in the longer term, particularly when it comes to retirement. Of course, the gender pay gap compounds the problem which is something not to be ignored. So, being careful not to gender stereotypes, what is it that is holding women back? What are the common barriers that women face and, more importantly, how can we address these?
Let’s start with confidence, or lack thereof
Research points to women lacking confidence when it comes to investing and investment decision-making. Many women tend to err on the side of caution when it comes to investment proactivity – which of course is a self-fulfilling prophecy as it is that very experience that builds confidence.
Lack of confidence is compounded by self-perception
Believe it or not, many women hold the self-perception that ‘investing is not for them’ and, as a consequence, avoid becoming active investors, in some instances outsourcing to partners to make the investment decisions.
Language can put women off
Yes, conversations about money can be intimidating, and sometimes this is made worse by the language and terminology used by investment professionals. In the past, the investment industry has also done little to build levels of financial literacy with their female customers and avoided resolving the problem.
We are failing women by the way we communicate about money
It’s not just the language and terminology used. It is also the core message we communicate to women when it comes to money assumptions and expectations. Linguistic research highlights that the media and advertising industries encourage men to ‘dare to invest’, subtly implying that financial success makes you ‘more of a man’. Whereas they tend to depict women as needing to limit, restrict and take better control of splurges. What can we do to turn this around? What steps can we take to support women to invest more, for their financial futures?
Start by focusing on improving levels of financial literacy for women
The investment industry itself can play a constructive role in this, so can schools and universities by teaching young women the investing fundamentals and building investor confidence. The good news is that there are more and more female-focused investment networks and solutions available now – we need more so let’s actively support these.
We need more women working in the investment industry to design and deliver better products and services for female clients
A better gender balance is critical because diversity of thought, experience, and action are core components of what the industry needs to be fit for the future. In addition, more women working in the industry will help to build trust with female customers, and will support the design of products and services better suited to women’s financial needs.
Back to communication
Let’s change the way we communicate with women on money matters. This is really important – we simply must change how we communicate with women about personal finance. This should start with stopping the portrayal of women as excessive spenders, in need of guidance to help them save and restrict. We can also highlight female role models who are making their way in the investment world in order to send the right messages.
Looking for new channels of delivery, we can leverage tech to democratise the way that women invest
Developments in tech offer us a pathway to connect and communicate with women in different ways from the past. To do that we must employ a female lens when designing tech-based investment solutions for women. In addition, we can customise investment products and services that fit best for what women are looking for today.
What do women really want?
It is time for us to think more deeply about women’s financial needs and deliver on these. Simply rebranding products for a female audience will not achieve the fundamental change we are looking for. The industry also needs to think more deeply about the kind of products and services that women want. For example, increasingly women are seeking out sustainable and impact investing products and services to include in their personal portfolios. More and more women are prioritising environmental and social impact when considering their investment choices. It is time the industry recognised this shift and started addressing it.
Jessica Robinson
The COVID pandemic has been financially tough on many women – often disproportionately so. This makes the call for addressing the gender investment gap even louder – but small steps can be taken, with potentially huge benefits to be reaped.
About the author: Jessica Robinson is a leading expert on sustainable finance and responsible investing, and author of Financial Feminism: A Woman's Guide to Investing for a Sustainable Future. Find out more at moxiefuture.com
Thankfully, improving your team’s efficiency and productivity doesn’t need to be difficult. There are many ways that you can give your team a productivity boost, and in this article, you will find out what they are.
Productivity Monitoring
Implementing productivity monitoring software is an effective way of improving your team’s overall productivity. The reason for this, by tracking employees and monitoring their productivity, you put them under a magnifying glass. This puts pressure on them to work harder because they know you are watching. Ultimately, the added pressure will improve their productivity and increase the amount of work that they do during the working day. When they know that their job is on the line and you can see everything that they’re doing, your team will be less likely to slack off and be lazy at work.
Proper Communication
Properly communicating with your staff is crucial if you want them to increase their overall productivity. Unfortunately, poor communication is common in many businesses. You need to ensure that your team managers communicate effectively, which you can do by having them participate in training courses and monitoring their communication. You should try to create a culture of openness in your company, so when staff aren’t communicating effectively, team members feel comfortable approaching you and bringing this up. When your staff know exactly what they are doing and overall communication is strong, they will work harder. Make sure you communicate effectively to managerial staff also, so that they know what tasks they are meant to delegate.
Strengths And Weaknesses
You need to take the time to identify your team member’s strengths and weaknesses. If you don’t know who’s good at what you won’t be able to effectively distribute work. You can identify your team members by having them participate in training courses and completing tests. You can also sit down with them and get them to tell you what they think they are good at. If you don’t have the time to individually interview your staff, then you could consider sending a survey around for your staff to complete.
Team Building
Team building exercises are a great way of improving your team’s overall productivity. When your team works together well, they can get more done and will be more productive. Encouraging communication, friendship, and professionalism in your team are very important. If they do not get along and don’t communicate well, they will not be able to perform well. Team building exercises in addition to out of work get-togethers (Christmas dinners, etc), can be very effective in boosting overall efficiency and productivity. You can also hold training courses online through platforms like Zoom.
Culture Of Friendliness
Creating a culture of friendliness in your company is crucial if you want your team to work well together. As mentioned in the previous point, a team that gets along well will work harder, better, and will be more productive. Creating a culture of friendliness isn’t easy but is important. You can do this by following our previous steps, as well as creating a cafeteria inside your office so that your staff can eat together. Team building exercises, as suggested earlier, can also encourage your staff to get along and work together.
Incentivise Hard Work
Some bosses find that incentivising hard work by offering bonuses is a good way to boost productivity. This is especially true if you are offering wage bonuses during the Christmas period, as well as extra time off. Some companies even offer their staff physical prizes, like iPads and computers, to team members who work the hardest. Incentivising hard work is a great way to encourage your staff to work harder, although it can be an expensive method. You could also introduce an employee of the month system and offer prizes to staff members who achieve employee of the month several months in a row.
Make Work Convenient
Due to the pandemic, many staff are now accustomed to working from home. If you want your staff to work harder and be more productive then you will definitely benefit from making your team’s lives easier, by allowing them to work from home. In addition, make sure to give your staff the latest technology and software, so they can complete their jobs more efficiently.
Boosting your team’s productivity doesn’t need to be difficult. In fact, by following this article’s guidance, your team will be more productive than ever.
As the UK continues to ease lockdown restrictions, many industries are wondering what to expect in the post-COVID landscape. In China, early signs reference a u-shaped recovery, which predicts a lingering effect in the coming months before trade returns to normal. During this period, some individuals may remain in, or enter, temporary financial difficulty. This is why it is essential that communication between consumers and the financial services sector are effective. Demi Edmunds, Specialist at TextAnywhere, explores this idea further.
Both the government and the Financial Conduct Authority (FCA) have implemented a number of different schemes and measures to support those experiencing financial difficulty due to the pandemic. To highlight just a few - mortgage payment holidays, interest free overdrafts of up to £500 and a freeze on credit card and loan payments have all been introduced in a bid to help consumers financially struggling as a result of the pandemic. These measures have and will continue to be vital in supporting consumers and the economy through this uncertain time. But to be effective, individuals need to be fully informed of the options available to them and this is why a robust communication strategy is crucial. We’ve collated some considerations for post-COVID communications for the financial services sector.
Inform consumers of available schemes
First and foremost, firms need to make consumers aware of what support is available. Although this may seem obvious, as extensions are confirmed and the potential for individuals to be financially impacted continues, this should remain a priority for communication plans moving forward. Firms need to ensure that consumers are communicated to in a clear and transparent manner, with full details of all relevant schemes. This includes any benefits to continuing to make payments as normal such as, not taking a mortgage payment holiday. As FCA interim chief executive, Christopher Woolard said: "where consumers can afford to make payments, it is in their best long-term interest to do so, but for those who need help, it will be there."
First and foremost, firms need to make consumers aware of what support is available.
Firms that remain proactive in communicating updates to consumers are ensuring that their customers are kept fully informed and may be able to reduce the number of incoming queries. This may be particularly valuable for those who are operating with reduced employee numbers.
Assure customers of all safety measures
The coronavirus has caused a lot of uncertainty and during lockdown, many organisations and firms closed physical locations. Selected banks and firms did remain open but with reduced hours and staff to maintain safety protocols. Consequently, even now it is vital to effectively communicate the measures taken to maintain a safe environment for customers and staff. For example, highlighting any additional hygiene procedures.
Moreover, to adhere to new safety guidelines many businesses will require customers to follow new protocols and these must be clearly communicated. Individuals need to be aware of what to expect when visiting their local branch, particularly if they have certain tasks they need to complete in-person. Customers need to feel as comfortable as possible during their visit and communicating details of the above, will go a long way to achieving that.
Consider how you are going to manage payment holidays coming to an end
Though extensions have been confirmed on many schemes, meaning support will be on hand until 31st October 2020, eventually these measures will need to come to an end. Organisations and firms need to start planning now, how are they going to handle these support measures coming to an end, being mindful of the fact that consumers may be more vulnerable than normal. Ensuring that next steps are communicated to individuals with plenty of notice and where possible, with breakdowns on payment figures and schedules, will go some way to helping individuals to financially prepare.
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Reflect on which communication channels you are utilising
When communicating with consumers, we would always recommend a multichannel approach. Different audiences within your customer base will likely have different preferences, it’s important to ensure individuals receive and read any important updates. As it was recently reported that 44% more emails are currently being sent than before the lockdown began, it’s worthwhile reviewing which communication channels you are using to ensure your strategy is as effective as possible.
In recent years, SMS has grown to become a very effective communication channel for customers to interact with businesses, with 74% of consumers reporting an improved impression of brands that communicate with them via text messages. What’s more, SMS benefits from an open rate of 95%, and 90% of messages are read within 3 minutes. This means the reach and speed far surpasses that of other communication channels, which can be particularly useful for time sensitive messages – for example, appointment reminders and account balance notifications.
Sign post suitable debt advice
Even before the pandemic, 9 out of 10 consumers surveyed reported that they suffer from stress and anxiety as a direct result of their debt issues. In a continually uncertain post-COVID landscape, individuals are likely to be feeling more vulnerable than usual. Though the regulator has still not confirmed whether additional resources, for example debt counselling, will be available to consumers over the coming months, the FCA have said - “Firms should consider signposting customers towards sources of debt advice… debt advice may be helpful for customers coming to the end of payment holidays”. Thus it is important that this has been prioritised in your communication strategy.
Treating customers fairly will always remain a top priority for those in the financial services sector, and a large part of that is ensuring that you and your team sufficiently understand your customers’ circumstances. Arguably, this is now more important than ever before and with effective communication your company can keep the dialogue open.
The COVID-19 pandemic has rendered daily life unrecognisable, and across the globe people are trying to determine how to navigate the strange new world we are living in. At the same time, businesses are having to alter their practices to keep functioning despite the changes that the rapid spread of COVID-19 has caused. The pressure is being felt across all sectors and financial services are no exception.
However, despite the uncertainty of the current environment, regulators still require businesses to comply with certain standards - as made clear in the recent information published by the FCA, which lays out the expectations of the regulator over the coming weeks and months.
With this in mind, there are steps financial services businesses can take to stay on the right side of the FCA during these unprecedented times. Imogen Makin, Director at DWF, outlines the most important ones to consider.
It's All in the Timing
There will undoubtedly be some teething problems for businesses as their workforces get used to the mass remote working required to comply with the current isolation rules. The FCA, and other regulators, know that this situation has never occurred before, and are therefore understanding of any problems or issues encountered in transitioning to this new way of working. However, the key here is just that, that these problems should be identified and reasonable steps taken to rectify them sooner rather than later.
Financial businesses must make it a priority to deal with any problems efficiently and effectively to minimise the risk of criticism from the FCA. Enforcement outcomes over the last few years suggest that firms' response times, both in terms of the identification and rectification of any problems, are important.
Keep an Eye on Your Employees
Another key issue linked to business being done from home is potential market abuse. Firms’ systems and controls for the prevention and detection of market abuse has been an area of focus for the FCA for some time, and the risks around mass remote working have brought this back to the forefront of the FCA's agenda. The FCA has stated that firms could consider whether they need to introduce enhanced monitoring, for example, in order to mitigate market abuse risks.
It is clear from the FCA Primary Market Bulletin published on 17 March 2020 that the regulator expects firms to continue to comply with their obligations under the Market Abuse Regulation and relevant FCA rules, notwithstanding the operational difficulties they may be facing. Firms therefore need to ensure that their analysis of market abuse risks in this new working environment is clearly documented, alongside any actions taken to mitigate them.
The FCA has stated that firms could consider whether they need to introduce enhanced monitoring [...] in order to mitigate market abuse risks.
Reduce Work-Related Travel
Further to the new rules brought in by the government to only travel when it is essential, the FCA published a statement outlining the responsibilities of Senior Managers to determine which employees must continue to travel to work.
Senior Managers responsible for identifying which of their employees need to travel to the office or business continuity site should document clearly the rationale for requiring any work-related travel and ensure that this is kept to a minimum in order to both appease the FCA, and keep their workforce as safe as possible.
Treat Your Customers Fairly
The disruption caused by the COVID-19 pandemic is unchartered territory; it has affected education, work, and almost all aspects of everyday life.
With this in mind, it is important for financial services businesses to consider that their customers are likely experiencing many stresses and uncertainties themselves and so regulators, including the FCA, have made it clear that they expect customers to be given flexibility and leniency, for example, in relation to mortgage payments.
Firms will need to ensure that they strike the right balance between protecting consumers' interests, whilst also maintaining their own liquidity and financial resilience, all of which are important in the eyes of the FCA.
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Communication Is Key
As in all successful relationships, communication is key - and the relationship between firms and regulators is no different. The FCA accepts that businesses are doing all they can to keep functioning during these extraordinary times, but they are nevertheless still required to comply with their Principle 11 obligations.
Firms should make sure they maintain an open dialogue with the FCA and inform them of problems sooner rather than later; for example if a firm is unable to meet FCA requirements in relation to recorded lines, the FCA has stated that it expects to be notified. The FCA's publications in relation to COVID-19 suggest that the regulator is prepared to be forgiving as long as firms have kept them informed and have taken reasonable steps to deal with any challenges that arise.
No Need to Panic
Firms regulated by the FCA do not need to fear - everyone is getting to grips with the new working environment simultaneously and some initial challenges are inevitable. The FCA has demonstrated that it is willing to be reasonable, but it will not allow COVID-19 to be used as an excuse for bad behaviour. The points outlined above provide a few tips to FS businesses to maintain good relations with the FCA for when the world returns to normal (whenever that may be).
As the UK heads into another period of extreme uncertainty, many businesses will be turning to their contingency plans, and rightly so. However, in amongst all the noise from Government, there has never been a more important time to keep talking, especially for businesses and their banking institutions. This problem is not going to be short lived, so burying heads in the sand is no longer an option. Shakespeare Martineau banking partner Chris von Strandmann offers advice to businesses below.
With the latest wave of updates moving away from health to focus more on the economic impacts of COVID-19, contingency plans are bringing some relief to businesses in their time of need. For those who haven’t done so already, the single most important recommendation is to develop contingency plans and share them as early as possible with the business’ bank.
Rather than being too exact about the details – which are changing by the day - make sure the plan includes an impact analysis of a number of different scenarios. The most common areas for businesses to consider are impacts on the workforce and working environment, changing regulation, potential supply shortages, late payments and inflexible contracts, in turn, alternations to these could directly impact working capital, funding and loan arrangements, as well as other agreements with banking and financial institutions.
Working capital must be considered carefully. By stress testing some common scenarios, businesses will be able to understand the impacts on cash flow. For example, if additional stock is needed to protect against a shortage of supply or debtors delay their payments because their cash flow is under pressure; banks should be able to help alleviate the pressure on the business with temporary overdraft facilities. The Government is also bringing out multiple support packages to help them through the COVID-19 crisis.
At the core of most businesses are their people, and as the virus spreads and self-isolation is becoming a common occurrence, being able to operate on skeleton staff – or at least know what the minimum capacity is – will help leaders make crucial decisions or know when to speak to banks and lenders before it’s too late.
For those who haven’t done so already, the single most important recommendation is to develop contingency plans and share them as early as possible with the business’ bank.
With new employment regulations being added at the drop of a hat, businesses must make sure that they know what their obligations are. On March 13, the Government introduced a new regulation that stated that employees with symptoms of coronavirus, who self-isolate in accordance with published guidance, are now entitled to claim statutory sick pay from day one of their illness. Although it looks likely that the Government will refund these payments, the time lag before reimbursement could be significant. With the possibility of needing to recruit temporary workers, as well as extended sick pay obligations, cashflow could take a big hit and banks can provide a short-term capital injection while businesses recoup costs.
For many businesses, agile working is not a problem, but for some, an upfront investment of suitable IT equipment may be necessary to make this possible. Providing laptops, workstations and mobile phones to enable work to continue out of the office can be a costly exercise, but could make the difference between a business staying open, or not. Seeking funding options from the bank can help to keep your business going, without putting too much pressure on cash flow.
To ensure funding agreements with banking institutions don’t penalise businesses further in this time of crisis, it is worth having conversations at the earliest convenience to negotiate some flexibility if there are covenants in place. For example, some finance agreements will sometimes contain a ‘clean down’ condition requiring a business to keep its account in credit for so many days each month, and if cash flow tightens, it may find itself in a situation where achieving this may be difficult. Other covenants may be around leverage and the business’ debt servicing ability. If profits are expected to be impacted, this could trigger a breach of this type of borrowing condition.
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It pays to be prepared and, of course, banks will want to be seen to be helpful. Last week, UK banks came out with a list of emergency measures, including suspending loan repayments and fee free emergency loans to help businesses overcome some of the current challenges they’re facing. Various lenders have already announced the availability of fee free loans for businesses that are hit by the coronavirus outbreak and it’s likely others will follow.
Banks hate surprises and they won’t know what they aren’t told. Businesses must make contact with their banks at the earliest opportunity and shouldn’t be afraid to tell them exactly how it is – if there is a place for brutal honesty, now is the time. And, it is likely that many other will be having similar conversations too. Businesses are not alone and speaking to local authorities, banks and other business leaders should not be underestimated.
Little do they realise that a lot can be done to encourage clients to pay faster, in some cases even before the due date. Being diligent and following the invoicing tips mentioned in this post, businesses can get paid faster and maintain smooth cash flow.
1. Send Timely Invoices
For businesses that don’t have formalised accounting departments, sending invoices in a timely manner might be a tough concept to grasp. But the fact of the matter is, the quicker you send your invoice the quicker it’s going to get paid.
Ideally, you should be invoicing your clients as soon as the products/services have been delivered. Here are the reasons why you should do this:
- Setting expectations: You want to project a professional image of your business and sending invoices immediately shows you take money matters very seriously. This will build expectations with clients accordingly, and they’ll be inclined to pay you faster.
- Value of products/services: Another reason why you want to send invoices immediately is that the value of your services/products is still fresh in the client’s mind.
Most business owners delay sending invoices because it’s usually a cumbersome process. But with a specialised invoicing software, it really isn't. Once you have the software set up to generate the kind of invoice you want, it’s only a matter of putting in data and pressing a couple of buttons, and you’ll have a professional invoice ready.
2. Set Clear Due Dates
Don’t leave it up to the client to decide the due date of your invoice! Having clearly mentioned due dates for invoice payment will communicate that you want the cash by a certain time.
There’s some technical terminology for this. For example, writing “net 30” means that the invoice must be paid 30 days from the invoice date.
Novice business owners don’t even need to use this terminology. They can simply write “Payment due on DD/MM/YYYY” for absolute clarity. With this the client won’t have the excuse of not understanding the terminology as well.
It’s also recommended to write full month names to avoid ambiguity, such as “February 3, 2020”.
Don’t leave it up to the client to decide the due date of your invoice!
3. Avoid Extended Due Dates for Payments
It’s good to be flexible when it comes to payments. You don’t want to give your clients a two-day window to make payments. But you don’t want to give them too much time as well.
Do not give your clients the freedom to pay late, as they’ll naturally gravitate towards this option. A balance must be struck here, with a payment term that’s short but relaxed enough that the client doesn’t feel flustered by it.
4. Impose Late Payment Penalties
This may sound a bit harsh to some business owners, who often have cordial relations with their clients. But hey, this is the lifeline of your business we’re talking about.
Imposing some kind of penalty on late payments can be a great motivator for clients to pay on time. For example, you could add a certain amount of interest on the payment if it’s paid after the due date.
In fact, having these terms means that the client will often make the payment much before the due date, out of caution.
Don’t forget to communicate these late payment terms to your clients beforehand.
You don’t want to appear brash about late payment penalties, so here’s the correct way to do it:
- Clearly include a section on late payment in your invoice.
- Communicate and agree on the late payment fees with your clients in advance (beginning of project).
Having a clearly stated policy on penalising lateness means that clients are far more likely to send payments early.
5. Incentivise Fast Payments
The goal of effective and efficient invoicing is to optimize the cash flow of a business. To get payments as fast as possible, you may want to incentivise clients who choose to pay you on time.
For example, you could offer a small discount to clients who pay ahead of the due date. You could also offer them a gift card of some sort - you get the idea.
6. Break Down Larger Invoices
You may be working with businesses that just don’t like to pay large invoices, for a multitude of reasons.
In this case, you can try breaking down invoices into several instalments. Instead of sending them an invoice for a large sum of money after 60 days, send them invoices after every 15 days, with smaller amounts.
This will work well for both you and your client because:
- You’ll get regular cash inflow.
- The client will find it easy to process smaller invoices.
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7. Send Friendly Reminders
Have you heard how email follow ups can dramatically improve the reply rates of email campaigns? The same goes for invoicing as well. Your client may have received the invoice but simply forgot to pay it.
This is why sending friendly reminders as the due date approaches is a good idea. You don’t have to demand that the client pay in these reminders, but rather make them aware of the fact that the due date is fast approaching.
Some business owners even use these email reminders to open opportunities regarding upselling products or services to the client. Be creative!
8. Treat Your Customers Well
This is the most basic tip we can give, but also something that’s important. Delivering quality products or services to your clients is a great motivator for them to pay you on time.
Customers’ everyday interactions with banking and insurance companies have been undergoing a steady process of transformation for some time, but the process still has far to go, both in terms of direct communication with customers and collaboration with third parties. Below Tony Rich, Head of Propositions at Unify, discusses the current banking environment and its ongoing interactions with a fast-evolving digital world.
Far fewer people now regularly visit or phone the local branch of their bank than even a decade ago, assuming there is one close by. I can pay money into my account at an ATM and arrange transactions just using my mobile app and a thumb print as security.
But bigger change is still to come. Today, when I interact with someone at my bank or insurer, I can choose to make a phone call or have a web chat, but as soon as I need a document or to speak to someone else, that conversation stops. Interactions can still be fragmented and time consuming. If I need to sign or check something, even if the document is held for me on a secure portal as some insurance companies now do, the process is very disjointed.
Let’s roll the clock forward a little to a time when cloud-based collaboration technology will make things much more seamless. Imagine I want to apply for a mortgage, or file a complaint, or make an insurance claim. My initial contact will start in the same way as now (say, a phone call) because it’s the one I am most comfortable with. But from there, things look very different.
I am immediately sent a link to a secure digital space where all interactions, conversations, documents and transactions about this particular process (my mortgage, complaint or claim) are stored and instantly accessible. Now, at any point, I can switch to a voice call, or a chat box, or a video call with two or more people. All this is done within the same secure online space, accessible through my mobile, tablet or PC. Here, at any time, I can hear a recording of the original call, see any documents I need to review and sign, talk to other relevant contacts, and so on. And when my case is complete, it can be archived to meet all auditing and compliance requirements.
This is a leaner procedure, with less to-ing and fro-ing, and document distribution and version control is easier. For customers and staff alike, it’s a more joined up, better and faster experience. For the company, a streamlined, friction-free process increases efficiency and drives down costs.
Multiple benefits
Given the challenges that all banks and insurers face – getting costs under control, protecting their brand, retaining and attracting customers and staff, achieving leaner agile operations while meeting regulatory requirements and compliance – it’s easy to see how this kind of immersive omni-channel experience could help address every single one. So, what’s needed for online communication and collaboration to be the norm?
The airline industry has already blazed a trail in creating more joined up omni-channel customer experiences. When I fly, part of my journey now is my ability to print or download my own travel documents, choose my seat, check myself in online or at a kiosk, and so on. I feel more empowered and in control – and the airline has enhanced its brand and achieved major efficiencies at the same time.
Key differentiator
In financial services, perhaps, things are in a state of transition. Internally, delivering more immersive customer experiences requires organisational and cultural change to think, connect and collaborate digitally by default. As far as customers are concerned, success depends on making sure the experience is easy and available to them in whatever channel is right for them. Older people, for example, might prefer phone calls and printable web pages. Digital natives, on the other hand, are savvy at reading and absorbing information direct from the screen and are more likely to initiate any communication digitally, including via social media.
Omni-channel communication and collaboration platforms are already in use at banks and insurance companies and new applications of this technology is being tested and developed every day. Extending platforms out into the customer space is a logical next step as the world becomes ever more connected. And in a fast-changing market and with the arrival of Open Banking driving new services, unified omni-channel experiences could be a key differentiator for any player looking to compete.
Over the past several weeks, insolvency and companies facing severe cash flow issues have hit the headlines. Carillion announced their liquidation in early 2018, becoming the largest insolvency procedure of the year. Quickly following suit, Toys R Us and Maplin announced their failure to negotiate payments with creditors, and both retail companies have now entered the administration process. Only several weeks later, New Look, announced plans to close 60 stores as part of their CVA, with agreements in place with their creditors. Similarly, Grainger Games closed all 67 of their stores abruptly, as multiple investors pulled their credit offerings.
The recent headlines have only highlighted the necessity of carefully analysing your cash flow, and that of your clients. While it’s not always clear if a client is failing, there are several signs indicating a company’s financial health. The warning signs act as evidence of potential trouble. Business Rescue Expert, leading insolvency practitioners in the UK, are sharing the indicators your clients may be in financial distress.
1. Poor communication
Poor communication is a significant indication of financial distress. Should your clients no longer return calls or answer emails, it is a strong indication that something is not right. If you happened to enjoy an amicable business relationship, yet cannot get in touch with management regarding invoices - you should look into formal proceedings.
Alternatively, look to see how the company corresponds when you do get hold of senior management. If their tone is more formal than previous, it could signify they are undertaking legal proceedings and, possibly, looking for alleged breaches of contract.
2. Disputing invoices
Further to the above point, your clients may attempt to avoid payment by raising invoice disputes. These disputes could relate to issues with performance, stock etc. and could be an attempt to shed unprofitable contracts to save payments. Again, the tone of their correspondence could suggest something is wrong with your clients, and they could be preparing a trail of evidence. Disputing their invoices also provides the company with a little breathing time, so you should be wary of clients disputing invoices where there doesn’t appear to be clear issues.
3. Loss of reputation
Reputation is critical to the success of business. A fall in reputation - especially when it comes to payment - should set off several alarms. If you hear the company is losing trust with other clients, it’s time to sit down and get to the root cause of their issues. A huge loss in reputation can often prove irreversible, as it takes time and investment to gain back consumers trust.
Toys R Us is a prime example of a company losing reputation. Initially, Toys R Us entered a CVA, but failed to pay the debts owed at the time agreed. Subsequently, the damage of their reputation with creditors led to them entering administration.
4. Relaunch and rebranding
You should always be wary of companies rebranding every so often, under similar names. Alarm bells should ring as to why they have had to sell and rebrand previously. Is the rebrand just plastering over the initial cracks of the cash flow issues? Likewise, if a company relaunches yet offers the same trade to their consumers, without any extra income, it’s more than likely they will continue to face the same problems. In the worst case, your company could suffer a loss of reputation due to the association.
5. Low staff morale
Staff mean the difference between success and failure, and companies should always take care of their workforce. A company who doesn’t and boasts a massive turn around is instant trouble, and a huge indicator of potential cash flow issues. More often than not, staff will get a feel for cash flow issues before creditors - particularly those within the sale team. If there happens to be a feel of unease, or a high number of resignations, you can expect cash flow issues are at the heart.
6. Senior staff resignations
A sharp indicator of what is to come is senior staff resignations. If directors are leaving the sinking ship, you need to ask why. Likewise, if directors are under investigation, something is very wrong with the company. If those in charge of the company’s finances have resigned, it may be as this is their only option. We urge you to take note of these departures and, if it continues, seek immediate advice.
7. Clients refusing to trade with the company
If you have spotted any of these signs with your clients, you must speak to professionals immediately to discuss your options. We suggest attempting to communicate with your client to establish the cause and, perhaps, set out a payment plan. You can also track their company progress or obtain accounts through Companies House.
You wouldn’t think that poverty stricken lands in the huge continent of Africa are actually rich with communications technologies, and in particular mobile phones. Below, Michael Brown at Credit Angel sheds a light on what this looks like, and how in fact, the proliferation of mobile technology is helping eradicate poverty in some areas.
The mobile market has thrived for some two decades now, and all signs point to further expansion. The industry will continue to grow globally, as consumers seek further convenience in their day-to-day lives.
It’s also a lucrative market financially, for banks, monetary institutions and innovators. Alongside mobile growth, financial technology (FinTech) is thriving alongside it as a natural consequence of increasing users and use. And payment systems that prove both convenient to the consumer and profitable for the providers will only expand until the next big innovation comes along.
However, alongside the global appeal of profit and convenience, the mobile market is thriving as an enabling tool in parts of the world where profit does not come first.
Background
It may surprise people to learn that mobile phones are thriving in parts of rural Africa. In villages distant from major towns and cities, where most people do not have bank accounts or secure ways of storing their money, it’s here where perhaps the biggest benefit of mobile use can be found. In fact, whilst the West has been dipping its toe into the combination of mobile and FinTech, rural African communities have been miles ahead in their acceptance of the new technology.
The lack of a bank account is clearly a security concern for all individuals. Any income made by those in rural settings once had to be carried or guarded by the individual. Cash, as we know, is perhaps the least secure of currency forms worldwide. It’s easy to steal, and virtually impossible to claim back once lost. Such a rural economy makes life incredibly difficult for everyone. Not only is there little money to go around in the first place, but any amount lost or stolen can quickly mean extreme poverty for individuals.
The Contactless Revolution
Whilst the West has been debating the safety of contactless cards in recent times, the United Bank of Africa (UBA) had already mobilised the facility across much of Nigeria. Most of us have reaped the benefits of contactless payments when we’ve found ourselves short of cash and far from a bank. But the UBA extended the benefits to include the likes of public transport and even taxis, and all this whilst Western buses remained cash-only, and Uber was nothing more than a German word meaning ‘above’. The gradual shift from contactless cards to mobile payments is simple common sense – why carry two devices when one will do?
The African economy as a whole is reaping the benefits of making its citizens mobile. In a society without landline telecommunications, it’s estimated that the continent gains a 0.5% rise in gross domestic profit, every time it enables a further 10% of its population to access mobile technology.
Beyond FinTech
The mobile market is thriving in rural Africa, and not just for directly-financial reasons. As farmers the world over know, the weather plays a huge part in their success. Instead of having to play a guessing game and potentially losing one’s whole crop and income, rural African farmers are using their mobiles for weather reports via the internet.
With such information at their fingertips, farmers know the best times to plant crops, sow seeds and harvest. The situation of families having no products to sell and thus no food for themselves has been greatly reduced as a result. Judge this against a rural economy in which around half the people are small-scale farmers and the difference mobile phones have made in fighting poverty is clear to see.
The introduction of mobile devices to the region have also helped with healthcare. Many people are too distant from hospitals and surgeries in emergency situations, meaning a high mortality rate, particularly amongst the young. Infections and diseases that are easily-treatable often claim lives in rural Africa, and it’s often for reasons of accessibility and remoteness. Many can now contact healthcare professionals for diagnoses and advice thanks to their handheld companions.
It’s a similar situation regarding education. There are now apps set up allowing teacher-pupil communication online, as well as online course, not dissimilar to the Open University. The economic opportunities for those living in rural economies have been increased tenfold, and the figures say it all. Mobile payment app M-Pesa is one company that has invested in rural Africa, and its innovations have brought nearly 200,000 Kenyans alone out of poverty over the last decade.
The Future
The relationship between FinTech and mobile tech is inexplicably linked, and the two are set to continue to grow together. Given that the number of mobile users will increase as time ticks on, this naturally means an increase in app-users and all other mobile mod-cons.
It’s estimated that 90% of smartphone users will have made a mobile payment by 2020. The world as a whole is moving away from cash-based transactions towards more convenient, secure and profitable ways of paying.
FinTech in Africa shows how a cashless society can work, as well as the untold benefits and freedoms such a set-up can provide for the individual. As it stands, the introduction of mobile phones to rural Africa ranks highly amongst factors credited with reducing poverty in the region, and it may well prove to be the number one factor in years to come. Discover more about mobile innovations and the future of spending.
Complaints data released by the FCA estimates that the total number of complaints decreased in the second half of last year by 14%, although changes in the way FCA measures complaints means that the number has gone up. A key new metric reveals firms’ ability to close complaints within three days, highlighting the increased pressure on firms to respond in real-time and to fast-track communication. The FCA report highlighted that 43% of complaints were closed in this time period, rising to 63% when PPI claims are excluded.[1]
According to today’s FCA complaints data report, which helps assess how well financial services treat their customers over time, the largest number of complaints were related to general administration and customer service. 40% of complaints are related to this topic, up from 27% in the first six months of last year.[2]
Bhupender Singh, CEO of Intelenet Global Services, comments: “Poor customer experience costs banking and financial services £5.81 billion.[3] Changing customer expectations put pressure on financial services firms to offer a round the clock service and many firms have adopted new technology solutions in response.
“The emergence of voice assistants and chatbots offer a new way of communicating with customers but firms mustn’t ignore the continued need to provide the possibility of speaking to a well-trained customer service professional. The technologies that will help firms to reduce friction in customer service are those which boost the efficiency of back-end administration so that agents can respond more quickly to customers. A harmonious blend of human interaction with digital tools should be the aim. Financial services companies should focus on modernising their IT infrastructure through automation so staff can redirect their focus to the customer, by taking away the headache of the more mundane repetitive tasks.
“Although we are seeing a trend in the total number of complaints reducing, financial services firms need to be constantly on top of the customer experience they offer. Automation matches speed with quality service and gifts banks with the agility their Fintech competitors have to ensure customer retention. Banks have an established customer base compared to new entrants, but in order to gain brand value they need to ensure they can service customers as efficiently and effectively as possible.”
Bhupender continues: “Customer Service inefficiencies are mirrored with high costs. Front line staff who are not equipped with the right skills and knowledge will result in longer queues and high abandonment rates. Many banks are turning to banking bots and voice assistants, as customers do want more choice in how they bank. But whilst the option of self-service is highly desirable for customers, firms must not forget to blend this an element of human interaction to enhance the customer’s experience.”
(Source: Intelenet)
