These are the obvious ones:

Wrong decisions

Wrong investments or an unattractive range of products: wrong decisions such as these arise due to inaccurate or incomplete information caused by a lack of data quality. This harbours the risk of companies losing their balance and becoming less competitive.

Increased costs

The effort involved in correcting incorrect data means a loss of time and money. It also ties up employees’ time budgets for creative activities. For small and medium-sized companies in particular, the cost of troubleshooting can be a considerable burden.

But that’s not all.

Reputation

One aspect that is often overlooked is the impact on a company’s reputation. Poor data quality can seriously affect the confidence of investors, customers and other stakeholders. This can lead to negative media coverage, a drop in share price, reluctance from potential business partners and loss of customers.

Compliance

Another underestimated risk is legal liability. Companies must provide accurate financial information to avoid legal consequences such as fines and legal action against the company and its executives. A systematic approach to data security is therefore essential to minimise compliance risks.

Insurance problems

Incorrect information due to poor data quality can lead to problems with the insurance company. Insurance companies rely on accurate data to set premiums and assess cover. This can result in the company losing insurance cover or having to pay higher premiums.

Extended process times

Poor data quality can lead to longer process times, for example in order processing, credit decisions, customer service or planning and budgeting.

A proactive approach to data quality not only helps to minimise financial and legal risks, but also strengthens stakeholder confidence and improves the company’s overall performance and competitiveness. In an increasingly data-driven business world, the quality of data is critical to the long-term success of an organisation.

Secure data quality with Inventory 365

The stock value can not only save time and money, but also spare your nerves. Quickly identifying differences between stock accounting and financial accounting, uncovering incorrect postings, analysing details and taking action to correct them – all this will be presented in one of our next webinars. Visit us for more information and to register:
Webinars.

The evolution of XaaS models is moving away from subscription models to consumption models or outcome-based pricing. These models offer a number of benefits to businesses, including:

• Adjusting prices to demand
  Companies can increase their prices when demand increases and reduce them when demand decreases. This means that they can skim off their customers’ maximum willingness to pay by setting prices so high that they achieve maximum profits without affecting demand.
• Adapting offers to customer wishes
  Companies can give their customers the option of paying only for what they actually use. This is an effective strategy for increasing customer satisfaction and loyalty.
• Control costs
  Companies can better manage their costs by only paying for the resources they actually use. This is another opportunity to increase profits and reduce risks.

Frequent problems in accounting and payment transactions

However, companies need to adapt their processes in order to take advantage of XaaS models. Companies consistently report these challenges, particularly in the areas of market launch, invoicing and payment transactions:

Insufficient automation:
Month after month, hundreds, if not thousands, of invoices need to be created for subscriptions, services and other recurring payments. Manually generated invoices take a lot of time and are therefore too expensive. At the same time, errors accumulate, for example in the amounts shown, the due dates or the recipients. This can lead to payment defaults and customer dissatisfaction.

Lack of transparency:
Given the large volume of recurring invoices, it is difficult to keep track of the respective status. This can lead to payment defaults and discrepancies in the financial accounts.

Difficult administration:
Trial periods, notice periods, grace periods and automatic renewals: The complexity of XaaS offerings is increasing. Creating correct invoices therefore becomes a complex task. The consequences are increased administrative effort and higher costs.

Benefits of using software solutions

Modern XaaS offerings are inconceivable without software. Only software enables the necessary efficiency and accuracy in financial processes. It offers the following advantages:
The automatic creation of recurring invoices.
A reliable overview of all recurring payments and their respective status.
Standardized and simplified processes.

XaaS with bill-to 365

Would you like to take advantage of the opportunities of the XaaS world for your company? Then visit our next webcast: bill-to 365 is the module in the CKL software family for recurring invoices.

The highlights include:

Flexible and easy-to-use management of your subscriptions and recurring invoices
Different billing models, such as licenses and consumption, which can be combined in the same subscription
Simple and individual parameterization of your invoice texts
Integration of automated texts, also based on conditions such as public holidays or sales opportunities such as Black Friday
and much more.
Are you in? We look forward to your visit!
To the information and registration.

The SEI report is supported by many parties, including Deloitte. Deloitte confirms significant growth in the area of subscription. In its “Subscription Report 2022”, Deloitte distinguishes between three fundamentally different subscription types:

Overview of subscription models in retail

Product subscription

Subscription to consumer products with regular home delivery. These include:

• Box subscriptions
  Including diet boxes, cooking boxes, beauty boxes and surprise boxes.
• Product subscriptions
  Delivery of preferred items such as cosmetics or food supplements at fixed intervals.
• Rental subscriptions
  Use of a product on the basis of a rental or leasing contract. Typical products are cars or laptops.
• Cloud software subscriptions
  Software use from the cloud on the basis of term contracts and use per user or “pay as you use”. Typical solutions are purchased software, apps and rental software

Service subscription

Customers receive access to services. Examples are:

• Membership programs
  Discounts on goods, personalized offers, direct interactions between customers and companies. In addition, digital services such as experience-oriented shopping supported by 3D technologies or virtual reality.
• Support and consulting subscriptions
  Subscription to regular training courses and access to teaching materials.
• Data subscriptions
  Customers have access to special data and information that is regularly updated, such as new deliveries combined with special purchase options.
• Cloud services
  Purchase and streaming of audio or video files.

E-Commerce-Subscription

Value-added services such as free delivery, express delivery or discounts on a specific platform for a fixed upfront fee.

There are no limits to the imagination: The number of variants will grow. Retail companies are called upon to seize their opportunities, rethink their traditional business model and way of working and create a co-existence of old and new.

Automated invoicing processes with bill-to 365

bill-to 365 lays the technological foundation for this transformation. The latest module in our product range has been specially developed for the fast and efficient processing of recurring invoices. The most important advantages include:

• Flexible and easy-to-use control of subscriptions and recurring invoices.
• Different billing models, such as licenses and consumption, which can be combined in the same subscription.
• Simple and individual parameterization of your invoice texts.
• Seamless integration into Microsoft Dynamics Business Central.

And much more.

Simply register now for our next webinar to find out more about bill-to 365. To the information and registration: Webinar dates.