Digitalized craftsmen increase the turnover up to 60% per employee
Visma e-economic, the company behind Denmark’s leading accounting program, who delivers accounting services to about 40% of all danish craftsman companies, has studied which effect Covid-19 have had on danish craftsmen. Surprisingly a lot of danish craftsmen have experienced growth during the Covid-19 phase. The interesting point is how digitalization influences who gets to harvest the benefits of this growth.
According to Visma e-conomic there is particular one group of craftsman companies, who are harvesting the biggest benefits of this growth. New figures shows that craftsmen, who has digitalized their company, has increased their turnover up to 60% per employee compared to the craftsmen, who hasn’t digitalized yet.
It’s no secret that Covid-19 has hit the danish economy hard. In spite of that the activity in the construction industry has increased. According to numbers from Visma e-conomic the danish craftsmen’s turnovers has increased by 14% during Covid-19. The interesting aspect of this increase is that the craftsmen, who has digitalized all of their administrative processes, has actually increased their turnovers up to 60% per employee. This is compared to craftsmen who hasn’t digitalized their business yet. The 60% corresponds to an annual additional turnover around 640.000 DKK per employee.
It is not small amounts you can earn if you choose to digitalize your business and processes. Visma e-conomic have talked to installation company ‘El og Teknik’ in Næstved, who states the following:
“To go from handling costly administrative processes manually to today having 90% of the administration automated has been a game changer for os”. We experience getting a lot of time released in both accounting and at our fitters. Time that is being used to take on more tasks and to offer a better customer service. In our company digitalization has resulted in an increased efficiency and improved competitiveness. But most important of all it results in happy customers, and happy customers are the goal for us”.Partner, Anders Colding Lund Petersen from ‘El og Teknik’ in Næstved.
On a daily basis e-conomic services 22.500 small and medium sized private craftsman companies. Out of the 22.500 every two have already digitalized their administration. E-conomics industry expert, Thomas Pedersen, doesn’t doubt how digitalization makes a crucial difference in the danish craftsmen’s business:
“It has never been more relevant to digitalize your business. The numbers speak for themselves. The big difference between digitalized craftsmen and not digitalized craftsmen is that digitalized craftsmen are far better geared to seize the opportunities, the favorable market conditions created by Covid-19 throws of. Simply because they have released ressources and time to respond faster and work more efficiently, which gives them a clear competitive advantage”.Industry expert, Thomas Pedersen.
If you take a closer look at the craftsmen’s working procedure in the administration, it is clear that the industry is characterized by manuel work. It shows among others within order management, time registration, material purchase, inventory management, invoicing and accounting. The above mentioned are all hand-held processes, which demands a lot of working hours and ressources, and at the same time they are vulnerable to human errors. That is exactly why the craftsman industry benefits from being digitalized.
At Visma e-conomic they hope that more craftsmen will follow companies like ‘El og Teknik’ and let them self digitalize. This is a way to move the whole industry, which hopefully will benefit danish business community and society.
“Digitalization of the administrative processes benefits not only the single craftsman’s economy. Due to the size of the craftsman industry an increased digitalization will also benefit Denmark’s economy and competitiveness on the long term. Today we in Visma e-conomic support almost 40% of all danish craftsman companies. That means it is a big part of the industry, we can help in a digital direction, and the craftsman industry is only one focus area. Digitalization is an advantage in all industries and thus for all the 150.000 small or medium sized self employed companies we service today”.Industry expert, Thomas Pedersen.
When is your company digitalized?
A craftsman company is considered to be fully digitalized when essential and manually processes within order management, time registration, accounting and invoicing happens automatically with minimal administrative resources. Here Visma e-conomic supports the majority of processes with a digitalized solution which has a price between 100 DKK and 300 DKK per month per user.
More about digitalization in the craftsman industry:
Digitalization is a comprehensive concept. In Visma e-conomic’s latest analyze it is being said that a craftsman is digitalized, when the company has a time and order management system connected to e-conomic by an integration to a third part application. And just like that the above mentioned processes are being automated, which saves the craftsmen from unnecessary time waste and shrinkage – and it also helps them avoid errors.
Until now the typical process concerning e.g. time registration and invoicing has been that the master craftsman or the apprentice have calculated working hours on a handwritten note at the customer’s place. At the end of the week they physical deliver their notes to an accountant. Thereafter the accountant manually applies the working hours to every task in the order management system – separately from the accounting system where the working hours are being entered manually. All of these processes are being automated by integration with a order management system in e-conomic. Then your working hours will be attached to the right task via a calendar function. The working hours are being adapted directly in a order management app on the mobile phone while the craftsman is located at the customer’s place – and the changes will be registered directly in the app. At the same time the working hours will be seen at the invoice in the accounting system – this because of the integration to e-conomic. All this happens without human interference.
Apacta collaborates with Visma e-conomic
Apacta is one of the above mentioned digitalization possibilities Visma e-conomic supports and collaborates with. At Apacta we have specialized us in making the easiest order management system available in Denmark – a system which is the right tool for every craftsman. The right tool within order management – that means time registration, quality assurance, invoicing and accounting etc.
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