30 Nov Fastest Growing Small Businesses Keep Payroll Lean
Lean planning is increasingly important to a small business growth strategy and the fastest growing small businesses turn to technology to sustain growth. Some successful companies are able to grow without growing accounting staff.
Looking at Lean Payroll
If you are a CFO or a CEO who oversees accounting, you know that the more the business expands the more unruly your financial processes can become. Almost all successful businesses that are growing rapidly in their market have one thing in common – they leverage technology that enables them to expand exponentially without having to hire on a legion of accountants.
Let’s look at one real life case where three software functions were instrumental in the success and expansion of a rapidly growing small business.
Grow the way the fastest growing small businesses grow
Let’s take a look at a franchisor that went global using Microsoft Dynamics GP Hosting solution for their accounting system. Dynamics GP is considered to be a highly scalable and customizable solution, but at the end of the day it’s still just an application.
BRIX Holdings, a franchisor with five retail restaurant brands, deployed hosted Dynamics GP cloud about five years ago. Since that time the company has grown 1300-percent without adding a single accountant or IT professional to the staff.
“To grow the way we did on a traditional system, we would have needed a minimum of six accountants plus a CFO. But with Dynamics GP and the cloud we were able to achieve that growth with just three accountants and one CFO.” said Richard Jensrud, Chief Financial Officer at BRIX Holdings.
BRIX was able to keep growing at an incredible rate despite the fact that they were running the business with a corporate accounting staff of just four.
SMB owners and CFOs know that growing a small business requires more than just plugging in a new solution. And if they are able to thrive and grow, those SMB leaders know that sustaining growth while keeping costs low and profits high is a whole new ballgame.
So how was BRIX able to stay lean even as they expanded from a handful of locations to more than 400 franchised shops in five different countries?
BRIX was committed to learning and using their software to enable deep automation of critical accounting processes as they acquired and built new brands in multiple countries. The following features are three essential tools they continue to use today.
Multi-entity and multi-currency accounting
With so many brands and locations operating under different currencies, it’s hard to imagine how accounting procedures could be easy, but with Dynamics GP hosting, aka Great Plains accounting software, BRIX has kept month-end closings to just a few minutes of work. Many other complicated accounting and reporting procedures have either been streamlined or eliminated by removing many manual processes with GP automated accounting tools.
Automated billing & collections
With automation for collections & billing, rapidly growing businesses can reduce the cost of collections, reduce time to collection and they can shorten billing cycles.
Growing a small business means more customers, more production and more time required for billing processes. Collections is a critical part of healthy cash flow and cash flow is what keeps a business’s doors open. Delinquent accounts, expired payment methods and other common speed bumps on the road to steady cash flow can be smoothed out with automated notifications, amount due cut-offs and automated workflows.
BRIX also uses AP automation features in GP to collect royalties and GP’s inventory functionality to manage franchised locations.
Anytime anywhere access
BRIX is able to extend the software to twelve home offices to reduce the cost of payroll, improve employee efficiency and help decision makers run the business on the go, whether they are at home or traveling.
Small business owners are no strangers to late nights and long hours spent in the office. But now some of those long hours can be spent at home with a software experience that is identical to what they see at work.
Plus with secure anytime, BRIX can continue to grow globally and manage international locations and remote employees from one system.
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