Every day, finance teams are being asked to do more with less, and it’s not unusual to end up with multiple software subscriptions that do very similar things. The bank has one app, your merchant system another, and it can be hard to get them to talk to each other.
And the varied requirements mean that you may even find yourself in a situation where you’ve added one piece of software to your stable, only to find that it creates a new problem that can only be solved with another piece of software. It can sometimes be difficult to gage whether you need the most premium subscription, or whether a lower-tier one would suit your needs.
So what if you could cancel most of your single-issue subscriptions and implement an all-in-one system instead?
In this article, we are looking at the issue of single apps and software vs all-in-one from the perspective of payment systems, but many of the points apply equally well to other functions such as management or financial accounting.
The more apps you have, the more likely you are to suffer a data security breach.
More apps mean more log-ins which means that people have to remember more passwords. We’ve written a little more on this in one of our other blog posts here.
The more apps you have, the higher the risk that one or more of your employees will engage in unsafe password practices like writing down their username and passwords, or to use the same for all. Both of these practices have a net effect of increasing risk in your business.
Even if they are integrated, utilising a lot of different systems means that there are more potential failure points where they integrate, and you increase the risk of an issue emerging.
When implementing a new software, you can expect an upfront cost, which can vary greatly. But depending on usage, the costs discussed upfront may not always express the full range of costs involved in using the software effectively.
Ideally, you’d know the full range of costings at the time you implement, but in some cases you may find that the cost unexpectedly increases depending on a variety of factors including:
There may also be additional costs involved in getting key functionalities outside the “core” functionality such as integration or appropriate reporting. Another potential issue is if you exceed monthly or yearly thresholds, and have to purchase additional bandwidth.
Multiply that by the number of apps you have working in finance then you can see that not only can it get expensive very quickly, especially in a growing company, but also difficult to predict what your costs are likely to be at any point.
With Caxton, your annual cost is clearly outlined at the start of the contract, with no hidden costs.
We’ve noted in the previous section that the more apps you have the more trouble you have managing the subscriptions, and the same is true for training and support.
When implementing any software in our business, we hope it will be user-friendly and intuitive, but sometimes complex functions require a more complex app. This is normally not an issue, as long as there is a comprehensive selection of training resources.
But there may be cases where neither of those two cases is true, in which case you need to decide how to best make use of your new software.
You’ll need to make internal decisions regarding training – do you train the entire team at once, or select one or two champions who will act as internal experts and advocates?
Alongside this, we need to think about the issue of support which suffers from the same type of problems. The level of support offered by different providers can vary wildly, and you don’t always know which end of the spectrum your newest supplier falls on until you encounter your first issue.
And sometimes, when using multiple apps you may find that the support function for both of them believe that the issue lies with the other app – and that means a lot of legwork for you in finding out what the actual issue is, and who needs to own it.
Despite all we have said above, there are benefits to splitting your functionality into separate apps.
If there is something you simply can’t achieve with your current system, then an app can often do what you want. A good example of this would be so-called ‘connector’ apps like Zapier that can connect and automate work between major systems.
However, this can also be done with an API like CXTN, which also has the benefit of the multi-functionality and single support system we’ve mentioned above.
Having separate apps can also be really useful when you are developing processes or want to test out new ways of doing things. Putting in a quick app can be used just to bridge a gap until you have a full system.
For most businesses, the disadvantages of separate apps outweigh the advantages.
A fully formed payment system is more secure and has the advantage that you only need one login. A single source of support and help is very useful and having only one system to learn means that adoption time is quicker.
It also minimises the risk of multiple subscriptions with variable costs and a lack of the core functions the system was intended to have in the first place.
Very often businesses have one method of paying payroll, one for suppliers and yet another for foreign exchange. Caxton instead combines all payment functionalities on one platform for every payment. Easily integrated into your systems with our proprietary API, Caxton offers endless opportunities for automation in payments. Interested in how Caxton could help you simplify your payments? Book a no-obligation call with us today to discuss your needs.
If you're looking for more information on finance and accounting then check out our Accounting Industry Articles or our Accounting Hub.
Caxton Payments is an alternative to traditional banks, established over 20 years, we help businesses make faster payments more reliably. We offer streamlined processes, automation through API and a collaborative solution to complex payment issues all from a single platform. Our payment capability extends from business expense management, to payroll payments, supplier payments, and currency risk management. We also offer personal prepaid travel cards and international money transfer.