Are you spending restless hours checking payments from your customers, debtors, or partners?
Is your finance team battling to tally transactions and reconciling them?
Was that a YES, YES, YES, YES?
“According to a survey, 79% of small businesses have struggled to pay a supplier and have faced cash flow issues, up from 71% pre-pandemic in 2021”
As a result of these cash flow issues and payments, SME business owners face challenges like:
- Slowed business growth (40%)
- Missed opportunities to seal future projects (31%)
- Poor Working Capital Management (25 %)
- Lost prospective candidates for hiring (19%)
Despite their potential, SME payment processes pose significant challenges for Indian business owners. Let’s take a look and see what they are:
Financial Workflows: Despite the business intelligence tools in the market, many small & medium scale companies, are yet to automate their financial workflows and payments. SMEs often are tied up with manual tracking, cross-team communication, and back-and-forth follow-ups with debtors, resulting in revenue loss and resource wastage.
Cash Flow Visibility & Tracking: Cash flow management is essential to reconcile and increase profitability for any company. If not done, there is a lack of visibility in tracking transactions, leading to errors.
Could you imagine presenting the real time business cash flow report at this point/minute? With BFM, that’s possible in just a few clicks!
Delay in Fund Settlement: Setting up company payment terms & polices, mentioning a period such as a window for settlements would help.
“A survey in India reveals that half of the total value of B2B sales is on credit. When asked about the reasons for payment delays from their B2B customers:
- 55% postponed payment of invoices to their own suppliers
- 40% needed to strengthen their internal credit control procedures
- 39% needed to pursue additional financing from external sources”
With BFM, get rid of back-and-forth follow-ups with debtors, and collect payments 20% faster.
Business Finance Manager (BFM) is committed to simplifying banking for SMEs that are experiencing difficulties like managing transactions, settlement delays, and chaotic bookkeeping. Download the BFM app today and sync with Tally to overcome these obstacles.