If you’ve recently heard the news of our rebranding efforts, you will know that Spenmo is pivoting forward with a new strategy – where we help businesses gain visibility, comfort, and control over how, when, and why money is leaving their company.
Though that may sound simple enough, when put together, it actually signifies a comprehensive view of how we aim to revolutionise the account payables (AP) process and empower all businesses to become more efficient.
But why is it so important for businesses to have that visibility, comfort, and control over their payables? Or how, when, and why money is leaving the business? Let us explain how they come into place.
Let’s start with a simple breakdown of each term.
What exactly does visibility represent? It means having a unified overview of the transactions a business deals with in the time it operates. Seeing all of that happening in real-time is essential to understanding its cash flow and financial performance– both vital factors in a high-performing business.
At the same time, this visibility maintains a high level of efficiency and productivity within the CFO office, allowing them to better make timely, informed decisions on allocating the business’s monetary resources.
Ultimately, visibility ties back to the idea of comfort and control. Having complete visibility to identify high-expense areas then allows for setting-up spending limits, creating approval workflows, or even adding merchant locks to prevent fraud and abuse. That way, the team can rest easy knowing that all these measures are in place for the business to carry on smoothly.
Now let’s get into more nitty-gritty details and the actual flow of money.
Is it actually important to know “how” money is leaving the business?
Well, knowing the means and the manner in which money is being paid is a useful indication of the most popular payment methods used in transactions. That said, the business can learn to leverage potential payment benefits– such as 0% FX markup rates or interest-free rates.
As the business reaches a high transaction period, it would undoubtedly trigger an alert for the business to manage its spending. Moreover, it ensures that your company has sufficient cash to sustain the large transaction volume and its relationship with its vendors.
What about the “why”? How does it come into the equation?
Understanding the purpose behind each transaction and its corresponding cost gives finance teams the opportunity to review transactions periodically, and to look out for areas that could potentially be more cost-efficient.
Knowing all these reasons can keep your business’s finances in check, where every transaction is accounted for, approved by the right people, and verified on a valid basis.
Now that you understand this vision and how it is integral to your business’ success, consider using an end-to-end accounts payable software like Spenmo to streamline and scale your AP processes.
Spenmo is an all-in-one integrated dashboard with automated bill payment features, custom approval flows, efficient receipt management, seamless accounting reconciliation, and more. Schedule a demo with us today!