Is your business stuck in error-prone spreadsheets and email processes?
Companies must prepare for technology to stay competitive and with pressure on margins. Companies have to put effort into optimizing their capital expenditure processes to survive in the future.
Capital expenditures play the role of the largest and riskiest accounts in financial statements. Therefore, accurate data, tracking, and reporting of Capital Expenditures are so important.
Today, businesses cannot afford to let everyday operations just spiral out of control. You must pay attention to the key signals in your operations that suggest that you are ready for automation.
Let’s examine 4 indicators that suggest your CapEx processes might need more attention.
If key metrics and indicators of the success of your operations are stored on every desk in your office, you never really get a real-time picture of your progress. This is one of the first red flags that tell you, you need to evolve your reporting from multi-desk to single-mind.
1)Sub-standard reporting
With visual reports and dashboards, you gain a complete picture that becomes easily sharable throughout your organization. Furthermore, reports are custom developed as per requirements.
With de-centralized data processing and inefficient and slow-moving business processes, companies find themselves dealing with a lot of lost requests and delays in project executions.
2)Losses inefficiency
Without a plan to manage unexpected expenditures, you are likely to leave money on the table. With the automation of CapEx processes, you can control, manage, and predict expenditures based on historic performance and increase the amount of business each dollar brings to you.
3)Missed opportunities
Some expenses can be made later, but often you reach a point where a time-sensitive request hits someone’s desk and gets stuck in a bottleneck. If this keeps happening regularly in your company, you exponentially increase the risk of losing potential business opportunities.
Either by delegating your authority to a proxy or managing approvals remotely, position the right tools in the hands of the right people at the right time.
4)Losing a competitive advantage
In competitive industries, when you are faced with ever-challenging margins, you need to look for opportunities to gain an advantage over your competitors. This means constantly being on the lookout for the best deals, either with products or suppliers for your business. With an inefficient CapEx process, you lose that ability when you place the weight of the success of your company in the hands of Bottleneck Bob.
To stay competitive, you should stay lean, and to stay lean, you need to get rid of everything that slows you down in a way that also speeds you up. When your CapEx process is well-managed, you can plan for future investments ahead of time and secure an advantage over competitors to stay ahead of the curve.
Conclusion
You need to eliminate error-prone spreadsheets and email processes. With this need comes a solution: automated workflows that produce accurate approval requests and budgeting, forecasting, and reporting tools to give the business 360 degrees of control over its spending. This is a big step towards better time and resource management, accuracy, and overall workflow efficiency.
