The SaaS (software-as-a-service) model has become increasingly popular in the last few years.
The extra resources provided by SaaS can help reduce inefficiencies and offer businesses an opportunity to focus their energy on the core business, while also offering cost savings over traditional solutions.
In this article, we'll be looking deeper into the benefits of SaaS and asking whether the streamlining and cost savings offered by SaaS could be more effective at saving money than traditional cost cutting.
Turbulent economic times and the need for cost-cutting
It's hardly a secret that the post-pandemic global economy is in a state of flux. Businesses, no matter their size or industry, are struggling to stay afloat in the face of economic uncertainty and increasing competition.
Around 88% per cent of surveyed Fortune 1000 companies have reported feeling the impact of the economic downturn, with many owners having to make difficult decisions such as cutting costs and staff.
Small businesses, however, have been hit the hardest. The US Chamber of Commerce reported that nearly half of small businesses are expecting an extended recession due to the pandemic's economic impact, and many have already shut their doors permanently.
Even mega-companies such as Amazon have been cutting costs due to the current economic climate and lack of consumer spending. The logistics giant is expected to cut 1000 jobs from its office staff in response to the pandemic.
In tough economic times like the one we are going through at this moment, it’s easy for businesses to look first at their outgoing expenses to reduce the cost of their operation. As a result, subscriptions and SAAS services are an easy picking ground to find ways to reduce monthly burn. But, is focusing on these specific costs in the bank statement the best way to reduce costs and improve profitability?
Are the easiest cost-savings the most effective?
Business inefficiencies put a strain on the bottom line and could be addressed before reducing headcount and cancelling subscriptions. The issue that many businesses run into is that streamlining processes and improving efficiency may not give you the immediate results that are needed to make payroll, or the cost saving is not immediately visible which makes actions, such as cancelling SaaS subscriptions seem like the only viable option.
But, businesses don’t often consider how SaaS and automation complete menial tasks that can be automated, so the employees and workforce can focus their time and energy on tasks only a human can do, that a computer can’t. Cancelled software are often streamlining processes and taking away manual work which takes time.
By automating routine tasks, businesses are able to free up resources for more important activities, such as developing new products or services and focusing on business growth.
For example, let's consider a person on a £30k salary who spends just one day a month chasing invoices. Accounting for employer contributions for National Insurance and pensions, 24 days holiday annually, and a 9-5 work day, this costs £152.
Chaser’s standard license costs just £99+VAT, so considerably cheaper. It’s also worth considering this ‘human’ cost doesn’t take into account management time and is for one day of work per month only, and doesn’t consider the engagement factor and enjoyability of sending emails that could be automated.
This is also based on an entry-level salary. If it's a financial manager running credit control or anyone with a higher salary the impact of Chaser’s standard license vs manual time is huge!
Instead of paying staff to do unskilled repetitive tasks, businesses can use the available resources to focus on core operations and customer service. Automation of processes also reduces the chances of errors, long queues and disruption in production lines, providing a better experience for the customers.
Data collection with SaaS solutions is becoming increasingly important for analytics and decision-making. With access to accurate data, businesses can make better decisions, respond quickly to changing markets and customer needs, and optimize internal processes.
Better access to data also offers new insights into customer behaviour, allowing businesses to innovate and create better products for their customers. This kind of data-driven decision-making furthers the competitive advantages of a company.
For businesses that have multiple locations or employees working remotely, SaaS can provide a central platform for collaboration between teams, promoting better communication and increasing productivity. It can also create an environment where data is securely stored, accessed and shared easily across the organization.
SaaS also offers a competitive advantage in the marketplace. By providing access to the latest technology, organizations can better meet customer needs and stay ahead of the competition. This can translate into higher revenues, increased market share, and improved customer satisfaction levels.
Given these advantages, starting to cut costs by ending SaaS subscriptions may be counter-productive. Instead, businesses should focus on using the advantages that a combination of SaaS and automation can offer.
Working smarter, not harder, could save more than cost-cutting exercises
While eliminating SaaS contracts might have an immediate effect on your budget, it could be more beneficial long term to maximize the efficiency and effectiveness of the services you already have.
Many financial tasks and responsibilities such as a company’s credit control, their accounts payable processes and their expense process can be automated and streamlined. For example, accounts receivable automation technology can help businesses automate the credit control process, including the collection of invoices, send payment reminders and overdue notices, track payments, and provide accurate reports in real-time.
By automating these processes, businesses are massively reducing the time and resources spent manually following up on overdue invoices. As a result, businesses are able to focus their time and energy on improving their customer relationships, as they can spend less time chasing payments and more time understanding their customers’ needs.
At the same time, an accounts receivable software can provide deeper insights into your customers’ payment habits. With accurate accounts receivable data, businesses can better understand which customers are at risk of defaulting on payments and which customers may need additional payment options.
This insight can help businesses make more informed decisions about customer credit terms, increase their chances of prompt payments, and improve their ability to manage and protet their cash flow.
Overall, Saas, and particularly an accounts receivable automation software can help businesses work smarter and ultimately help save more money than other, more traditional cost-cutting exercises.
How Chaser can help you cut costs and increase efficiency
As a market-leading credit control automation software, Chaser enables businesses to significantly reduce the time and effort spent chasing debt. With Chaser, you can rest assured that your accounts receivable processes are polite, and efficient and ensure that all customer payments are collected in a timely manner.
In addition to helping businesses optimise their accounts receivable processes by streamlining payment collection, Chaser also offers features like credit checking that can help businesses take a proactive approach to their credit control and reduce their exposure to bad debt.
Chaser also offers an array of reporting features designed to give management teams a clearer view of the overall health of their accounts receivable processes and bad debt – allowing them to identify areas for improvement and to make decisions based on real-time data. This helps businesses reduce their cost of capital, improve their cash flow cycles, and manage risk more effectively.
Chaser is an invaluable tool for businesses of any size looking to efficiently manage their accounts receivable and streamline their collections process. With its simple user interface and powerful features, Chaser has become an essential component of thousands of businesses’ financial strategies.
Request a demo today to learn more about how Chaser can help your business manage and streamline its accounts receivables. Chaser’s team is always available to answer any questions you may have, so don’t hesitate to reach out. We look forward to hearing from you!