Innovation within SMEs often conjures up images of sweeping technological advancements or groundbreaking product launches. Yet, the essence of innovation lies in the subtle art of refining existing processes and tools to enhance efficiency and drive growth.
Especially in the finance functions of SMEs, the potential for impactful innovation is vast and frequently overlooked. By reimagining the use of financial systems such as Xero, SMEs can unlock significant improvements in operational efficiency and strategic decision-making.
Innovation transcends the mere development or implementation of new products. It includes process innovation and business model innovation – altering the ways in which businesses operate and create value.
The untapped potential of digital financial tools
While the buzz around generative AI captures the imagination of many, it’s worth asking if you have fully adopted and leveraged cloud-based accounting systems yet.
Cloud-based accounting software like Xero represents a goldmine of underutilised features that can revolutionise SME finance functions. Despite its widespread adoption, many businesses merely scratch the surface of Xero’s capabilities, or worse, implement it and then continue to also maintain legacy systems.
Leveraging Xero to its full potential includes:
- Batch payments: Automating the payments process not only saves time but also reduces the likelihood of errors. By utilising Xero’s batch payments feature, SMEs can handle multiple transactions efficiently, freeing up valuable time for strategic activities. Xero have also recently released Pay Bills From Xero, where you can now pay the bills without leaving Xero.
- BACS payment files: For businesses who don’t want to use Pay Bills From Xero, leveraging BACS payment files through Xero can streamline the supplier payments and payroll process, ensuring timely and accurate transactions without the manual hassle.
- Supercharging Xero with other apps: Enhance Xero’s capabilities by integrating with apps like Dext. This powerful combination allows for seamless data extraction from receipts and invoices, which can then be effortlessly uploaded into Xero. This synergy not only improves data accuracy but also significantly reduces the time spent on manual data entry, optimising financial management and operational efficiency.
These features, among others, epitomise the kind of incremental innovation that can transform the financial management landscape for SMEs. By fully embracing the functionalities of their existing financial systems, businesses can achieve substantial efficiencies, improve accuracy, and enhance their financial decision-making capabilities.
Fostering a culture of continuous improvement
Innovation in the finance function is not a one-time project but a continuous journey of improvement. SME owners should foster a culture that values curiosity and ongoing learning. Encouraging the finance team to explore every facet of their financial systems and to stay updated with new features and best practices can cultivate an environment where innovation thrives.
If you find yourself undertaking a manual task, thinking there must be a better way to do this, there probably is. The challenge
is to stop long enough to find it and then to actually implement the solution.
Conclusion: a call to action for small business owners
For SMEs, the path to innovation need not be paved with monumental changes or substantial financial investments. Significant improvements and efficiencies can be realised by re-evaluating and fully leveraging the capabilities of existing financial systems like Xero. Such incremental innovations in the finance function can have a profound impact on an SME’s operational efficiency and strategic agility.
This exploration of innovation within SME financial management serves as a call to action: dive deeper into your existing tools and processes. Challenge the status quo by asking whether you are truly maximising the potential of your financial systems. Embrace the myriad features of platforms like Xero to not only streamline your financial operations but also to unlock new opportunities for growth and competitive advantage.
In a world where change is the only constant, the ability to innovate within the finance function can distinguish your SME as a leader, capable of navigating the complexities of the business landscape with agility and foresight. Start small, aim for continuous improvement, and watch as these incremental changes pave the way for substantial gains.
It’s as much about human engagement and education as it is about buying or using an existing piece of software. Ironically, the more technologically driven a business becomes it seems the more human interactions and engagement need to go to the top of the agenda.
At Ad Valorem Group, we are passionate about helping SMEs fulfil their potential and assist many different types of businesses with structuring their finance teams so that technology really does deliver the return on investment that is promised at the outset.
If you would like to discuss how we can help you streamline your financial processes or understand how new technologies can benefit your business, please contact us or visit our website to register your interest.
Contact Ad Valorem Group on 01908 219100, email enquiries@advaloremgroup.uk or visit the website www.advaloremgroup.uk
Head of Innovative Accounts
Ad Valorem Group
