Aryes talks about SME profitability and financial data

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There are dozens of FinTech platforms targeting small and medium-sized enterprises (SMEs) on the market today, and the list of solutions designed to help entrepreneurs manage their money continues to grow.

For many SMEs, the pandemic has been a wake-up call for the importance of digitization – not only to continue reaching customers while storefronts close, but also to optimize back-office workflows and get a clearer picture of financial health.

FinTech solutions are an important part of this effort, but aryes CEO Edouard Bullard warned that adopting digital accounting, accounts receivable (AR), accounts payable (AP) or other financial systems will not necessarily allow one business to avoid financial problems in the case of another disruptive event such as the pandemic.

“There is no real way to track your profitability, whether or not you can withstand a period like COVID, or have any means to track your sales,” he told PYMNTS in a report. interview.

With so many business owners launching operations out of a passion for the job – and not necessarily a passion for financial management – the use of data within these various FinTech solutions can launch these businesses on the path to profitability and financial security. . Bullard explained why businesses struggle to meet this goal even with digitization efforts, and why text messaging can play a critical role in keeping businesses in the dark.

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Much has been said about the challenge businesses large and small face in integrating the growing volume of platforms and systems taking root in the back office. But even allowing these solutions to connect and share data won’t necessarily provide SMBs with the kind of business intelligence they need to assess what it will take to become profitable.

Plus, Bullard warned, many business owners may be wrong or not understand what profitability even means.

“We all assume that sales are success, and that isn’t always the case,” he said. “As long as you’re able to pay your bills and keep your staff paid, you think you’re doing well. But in reality, something like COVID or something hits, and you might not be able to get out of a hole, and [then you] put you out of business.

Speaking with entrepreneurs, he found that many SMEs tend to shift much of the financial management workflow to the accountant. While these professionals should play an important role in helping to close the books, file taxes, and understand cash positions, business owners do not always have the opportunity to use the technologies and expertise that they provide. they need to get clear advice on how to grow the business. .

Aryes, who announced his official launch earlier this week, stepped in to fill that gap. By gaining authorized access to companies’ existing systems and accounts, FinTech can provide key metrics including sales, top-selling items, projections, and new customers. More importantly, the solution can also identify tangible goals that a business must achieve to ensure profitability.

“It’s in layman’s terms for a small business owner to say, ‘I need to achieve this, I need to spend a lot less than I spent last year, and I’ll be profitable in X days. “, explained Bullard.

The integrity of the text message

Allaying the concerns of small business owners about data sharing can be a challenge, Bullard acknowledged. Assuring users that the data they agree to share in the Aryes system will never actually be seen by another human is key to adoption, but Bullard stressed that other technology is essential to preserve security and l integrity of SME financial data and the information Arys provides: the SMS.

“Texting is the most secure application on your phone, believe it or not,” he said. “No one has ever hacked a text message threat before. It just didn’t happen.

Of course, no infrastructure is 100% resistant to security threats, the text message included. Yet by providing metrics and information via SMS, small business owners can be sure that financial analysis is only seen by them, rather than running the risk of leaving that information open on a desk, for example.

Regardless of how the message is delivered, small business owners should not only understand their current financial situation, but also need clear, concrete advice on the goals they need to achieve and the steps they need to take to become profitable. Unlocking data from existing platforms as more SMEs go digital is the first step in keeping more doors open and operations ongoing.

“I see more and more small businesses closing their doors,” Bullard said. “I see a lot of doors closing. I think, if caught in time, Aryes can help keep those doors open.

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About the study: UK consumers see local purchases as essential for both supporting the economy and preserving the environment, but many local High Street businesses are struggling to get them in. In the new Making Loyalty Work For Small Businesses study, PYMNTS surveys 1,115 UK consumers to find out how offering personalized loyalty programs can help engage new High Street shoppers.

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