How Technology Can Save Your Business $3,500+ Per Month

A completely integrated, cloud-based business management system gives you all the information you need in one spot so you can streamline your processes, reduce your operating costs, and focus on growing your business. For most businesses in the verticals that we serve, the monthly savings are considerable, and come about in direct and indirect ways.

Consider your potential savings from new cloud technology:

• Eliminates redundancies and reduces errors from managing spreadsheets
• Can do the job of 2 people, saving an average of $2,848 per month
• Reduces manual invoice processing costs by $417 per month
• Saves $190 per month with vendor EDI and automatic ordering.
• Eliminates expensive on-premise servers for $150 per month in savings
• Saves $100s per month in backup and security costs
• Prevents painful physical inventory processes for $48 per month in savings

Personnel needed: $2,848 per month

Based on the average minimum wage, for a 40-hour workweek, the typical business pays an average base of $1,424.00 per employee, per month. Based on how much time and effort technology can save businesses in invoicing, server maintenance, backup and security, and inventory processes, the total savings in personnel, factoring in benefits and insurance, is conservatively estimated at $2,848 per month.

Invoice processing: $417 per month

The typical expense associated with processing a single invoice can reach up to $15. However, businesses that have adopted accounts payable process enhancements, such as an AP automation system, have experienced substantial savings of 60-80% compared to manual processing, resulting in an average cost per invoice of $5 or less. By leveraging AP automation, teams can save an average of $13 for every invoice they process.

For companies processing 32 invoices per month, that is a monthly savings of $417, based on an $18 average wage for an invoicing specialist and a reduction of the month-end processing time. For companies processing 500 invoices per month, that is a monthly savings of $6,500 and an annual savings of $78,000.

On-premise servers: $150 per month + $100s per month in backup and security costs

The average cost to rent a small business server is $100 - $200 per month, depending on the needs of a business. These savings are a conservative estimate that can easily escalate when factoring in the costs of server maintenance, which range from $150 - $1,500 per month. Overall savings resulting from eliminating on-premise servers come about in several ways:

• With cloud-based software, businesses don’t need to purchase and install physical servers in their own facility, which can be a significant upfront cost. Instead, they can simply pay a subscription fee to use the software on a cloud-based platform, which is hosted and managed by the provider.
• The ongoing costs of maintaining and repairing on-premise servers can add up quickly. With cloud-based software, the provider takes care of all server maintenance and upgrades.
• Similarly, the ongoing costs of backing up and securing data vary from business to business, depending on the amount and sensitivity of data.
• Cloud-based software is scalable, so businesses can adjust their usage as their needs change. Expensive on-premise servers require an initial purchase large enough to accommodate peak usage, which may rarely occur.

EDI and automatic ordering: $190 per month

Cloud-based software reduces costs for businesses with vendor EDI (electronic data interchange) and automatic ordering in several ways:

• Ensures that all data is accurate and up to date without the costs of manual data entry, errors, and rework
• Sets up automatic ordering, which eliminates the time and costs involved in manual ordering
• Reduces inventory levels to what is optimal, without overstocking or running out of stock
• Streamlines processes and allows businesses to communicate efficiently with vendors in real-time, reducing costs associated with delays in delivery or response time

Cloud-based computing technologies have proven to be a game-changer for businesses, resulting in significant cost savings per month. By streamlining business processes, eliminating the need for expensive on-premise servers, automating invoicing and inventory processes, and improving internal and external communication, cloud-based software has enabled businesses to operate more cost-effectively, which especially makes a big difference for SMBs. With the ever-increasing benefits of scalability and flexibility, cloud-based software continues to be a cost-saving solution for businesses looking to optimize their operations and boost their bottom line.

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