MUNICH, Germany, September 29, 2022
A new financial operating system called Frienton hopes to reduce German SME costs by an average of over €40,000 yearly.
German SMEs are paying an average of €62,000 for money-chain services according to a study conducted by Plum Consulting, an independent consulting firm in the UK.
Money-chain services are all the services required to deal with income and expenditures in an organization — everything from banking to bookkeeping, planning, controlling and tax reporting.
The study reveals that many of Germany’s 400,000+ SMEs are paying as much as €21,500 per annum for tax services alone. The second-highest money-chain cost is for planning and controlling services at €20,000 a year on average. Additionally, companies spend as many as 110 working days a year dealing with money-chain-related matters, the same study found.
“Financial administration takes a heavy toll on the typical SME,” says Dr. Trenton Milner, one of the co-founders of Frienton GmbH. “And the relevant information about the SME’s financial standing is rarely up to date.”
A “scattered landscape” of software tools
“The root causes of these excessive costs and wasted time,” Milner adds, “are a lack of automation and a scattered landscape of different software tools, solutions and agents without proper digital integration.”
This is precisely the problem that the Munich-based company hopes to solve with its Frienton platform, a one-stop-shop for financial administration. The platform, which has now reached the MVP (minimum viable product) stage, will ultimately integrate all money-chain services into a single cloud-based solution — everything from the initial invoice to the final tax report. SMEs simply sign up, connect their bank accounts, upload their invoices and let the system do the rest. The final strokes of tax fulfillment can then either be self-directed through Germany’s ELSTER tax portal, the user’s own tax accountant or through one of Frienton’s affiliated tax partners.
Josef Schindler, a serial entrepreneur and one of the co-founders of Frienton said, “The Frienton platform aims at becoming the financial operating system for SMEs by seamlessly integrating the money chain all the way from multibanking, via bookkeeping, planning and controlling to tax fulfillment.”
Through automation, machine learning and integration with third party tools such as travel expense and salary management, the platform will provide users with full control over their business finances at a fraction of the current cost and time. Frienton also offers a 24/7 live reporting capability to provide its users with up-to-date financial statements that can be exported on demand.
The current MVP stage of the product is especially suited to early-stage companies and holdings (so-called “UGs” in Germany). And new features are constantly being added by Frienton’s development team.
With Germany bracing for a potential spate of insolvencies in 2022 as a result of skyrocketing energy prices, an annual saving of about one third of their current money chain cost (“Frienton price guarantee”) is welcome news for any startup.
Businesses interested in Frienton can book a free demo of the product at https://www.frienton.com/.