SME businesses facing process errors

SME businesses facing process errors

A recent survey by Applied Business discovered that one in four SMEs frequently face business process errors. This includes essential administrative and operational tasks ranging from payroll to project management.

Respondents who still use manual operations also acknowledged how time-consuming certain processes are; with their operational functionality putting them at risk of an incomplete or error-strewn CRM, improper financial management and, ultimately, delayed top line growth.

Poor time management affecting finances
The survey also found that time management is a significant problem with 45% of SMEs (who process operations manually) rating their time management as average.

39% of those surveyed confessed that accounting and invoicing takes up most of their time. The time consumed by manually operating these processes could result in money loss and incorrectly allocated expenditure.

Size and profit margins amplifies urgency of improvement
One in four respondents with 0-100 employees said they constantly or frequently experience manual business practice errors.

These statistics indicate that the tight margin limitations for smaller organisations are intensifying the need to eliminate these manual operational errors in order to avoid losing vital business and hindering their growth potential.

Employee satisfaction and salaries at risk
45% of SMEs still prefer to manually operate their accounting, HR and payroll procedures, putting them at severe risk of errors affecting their employees.

These administrative processes can easily be automated with enterprise software which embraces the comprehensive management of each team member’s competencies, knowledge and personal attributes in a cost effective and efficient environment.

Manual customer relationship management affecting client data and retention
Of the 34% of respondents who still carry out manual CRM processes, 50% said this consumes most of their time. Additionally, 28% said manual operational errors are frequently affecting their CRM. The ineffective application of CRM means businesses are failing to learn and record more about customers’ needs and behaviours in order to develop stronger relationships with them.

The sector that uses manual processing the most was professional services which equated to almost half (49%) of all respondents. With industries in this sector focused on providing services, mainly to other corporate entities or public bodies, streamlining their CRM management is essential to enable the delivery of a competitive advantage and retaining existing clients through outstanding service.

“In our experience, it is still unbelievably commonplace for successful businesses to be reinforcing their legacy ERP software with manual processes. This breeds disparate silos of information, leading to multiple versions of the truth across an organisation and repetitive rekeying of data. This increases the chances of mistakes being made at each stage of the process. Implementing an integrated ERP solution can result in significant cost savings as well as noticeable improvements in customer service levels and therefore overall profitability.”

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