? EDITOR ’ S QUESTION //
“
THE SAD TRUTH IS MANY
FINANCE PROFESSIONALS REMAIN LARGELY
UNAWARE OF THE
VULNERABILITIES
WITHIN THEIR OWN BUSINESSES .
Branden Jenkins , Chief Operating Officer , Medius
Every month , we pose industry experts a question pertinent to the issues of the day . This month . . . .
INANCIAL SOFTWARE CAN
F make a huge difference to the success of an SME . Branden Jenkins , Chief Operating Officer , Medius , said : “ Historic inflation levels , a looming recession and the possibility of another black swan event have all heavily impacted the current boardroom mentality of business leaders , particularly when it comes to company finances . Small- and mid-sized enterprises ( SMEs ) in particular tend to take a disproportionate hit during times of economic instability , so it ’ s no wonder that finance leaders of smaller businesses feel especially weighed down by decision-making and risk analysis , in order to generate healthy revenue .
“ Yet , the sad truth is many finance professionals remain largely unaware of the vulnerabilities within their own businesses , leaving them potentially susceptible to cybercrime and fraud . In fact , the latest Financial Professional Census reveals that the average business – including SMEs – loses more than £ 295,000 to fraud each year . To add to this alarming revelation , only a quarter ( 25 %) of finance executives surveyed were able to estimate the financial impact of fraud to their business and / or were unaware of it occurring in the first place !
“ It ’ s clear that the events of the past few years have caused many SME business leaders to focus on potential threats outside of their business , whether it ’ s improving supply chain processes or deepening customer relationships , for instance . Yet , while this is no doubt a necessary undertaking , it has nonetheless resulted in finance departments dropping the ball on internal systems , especially end-to-end payment processes . This creates a ripe environment for fraudsters , including overlooked employees – to steal crucial business funds , mostly undetected .
HOW CAN FINANCIAL SOFTWARE HELP AN SME ?
The good news is that Accounts Payable technology can help businesses detect irregular and potentially fraudulent behaviour , freeing up finance leaders to focus on the macroeconomic challenges facing SMEs today .
“ But many businesses need to update their technology to benefit from the increased automation it can provide to finance teams . More than six in ten ( 62 %) of finance professionals perceive their company ’ s financial software as obsolete , and in an age of rapidly evolving technology , including generative AI , those businesses which fail to fully digitalise their payment processes are much more likely to fall behind and fall prey to human error , outdated technology and defraud attempts .
“ Something I see every day in my role as COO is the need for constant technological development . The reality is that no company is safe from fraud , so every business and finance leader bears the responsibility of reducing financial theft . This is especially necessary during times of economic uncertainty where resources are more finite than usual and where employee churn may be lower than the norm – particularly for SMEs . In these times , businesses need to evaluate available resources and seek to improve continuity of process , accountability and transparency through Digital Transformation – particularly across finance functions . Financial software has the power to create a robust system of checks and regulation – from validating important vendor data , anomaly detection and leveraging end-to-end invoices . Automation can help safeguard SMEs from fraudulent activity , which too often passes through unnoticed and drains businesses of unnecessary revenue leakage .”
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20 intelligent
. tech
Intelligent SME . tech