Automate Your Accounts Payable and Receivable Processes
A successful business is dependent on a variety of factors. While most of those factors can be controlled from within the company itself, cash-flow remains the most pivotal yet the most unpredictable of them all. For any business to continue running smoothly, it is vital that cash-flow efficiency is maintained. Cash-flow of any business is made up of its Accounts Receivable (AR) and Accounts Payable (AP). The money you owe and the money that you are owed needs to function smoothly in and out of your company’s ledger to keep your business afloat. However, it is not that simple. Ideally, ARs + APs should be equal to the cash-flow. But one important variable in this equation is time. The amount of time that is wasted in processing invoices and managing collections is monumental. Not only that, finance teams also spend a lot of time doing redundant manual tasks which leads to misuse of resources which could otherwise be involved in revenue-driven tasks. To achieve an almost-ideal state of improved and enhanced cash-flow, businesses should steer their boat towards the magical land of Automation!
Automation in Accounts Receivable and Accounts Payable can enormously increase revenue growth and employee morale. It considerably reduces the turnaround time, decreases errors and allows employees to focus on better utilizing their talents.
Let’s take a look at the benefits of Automation in Accounts Receivable and Accounts Payable to understand in depth why it is the way forward for futuristic businesses.
Benefits of Automation in Accounts Receivable
With automation comes speed. Generating invoices takes a lot of time in reviewing the price sheets, calculating the total amount and then adding any specific customer-based requirements and its cost. This when done manually, is a time-consuming job that is highly prone to human errors. Automating payments can save time in doing repetitive work and reduce chances of mistakes in invoices which can lead to distrust in business relations with the clients in the longer run.
Boosts Customer Relations
An automated platform for payments allows scope for building better relations with clients. Customer Service is key to maintain a lifelong relation and an automated ARs portal acts as a bridge between a client and a company. From tracking service requests and complaints to incorporating customer feedback, automation can act as a wonderful tool to boost consumer faith as it provides a platform for faster resolution.
When it comes to matters of money, security should be stringent. Traditional methods of payments are susceptible to high risk as the data can fall into wrong hands and money can end up being laundered out of the company. With a centralized automated payments system, multiple security checks can be put in place to access the database, thus rendering critical attacks useless.
Reduced Carbon Footprint
To be a futuristic business in this day and age, businesses should aim to minimize its carbon footprint. Non-digitized payment methods leave behind a huge paper trail. Automation helps in turning your business into a sustainable business by sending invoices digitally, collecting payments through digital modes, sending payment reminders through the portal and maintaining records digitally for future use.
Benefits of Automation in Accounts Payable
Reduction in Errors
When processing payments manually, the liability of making silly mistakes is high. Making the switch from paper to digital documents decreases the chance of calculation errors, filing errors and processing errors. AP automation boosts productivity by nullifying redundant manual tasks and enhances employee morale by engaging them in meaningful work.
Automation gives a centralized view of a business’s spend trends. Finance teams can keep a track on all the incoming and outgoing cash flow from one single touch point that updates in real-time. Higher management can also keep an eye on the business funds by ensuring that they are being spent in a proper manner as per company’s policy. This also gives an added bonus to finance teams to map out future transactions to set an expenditure limit or release payments after a specified time to optimize cash-flow.
Technology has revolutionized the way of life. Since the pandemic hit us all, the premise of remote working has seen a meteoric rise. With teams and individuals working remotely, it is necessary for everyone to be on the same page and access the latest data. An automated platform makes it easily possible to share files and access a company’s database from the comfort of your homes. Finance teams can log in from anywhere in the world and process payments. Thus, automation boosts efficiency and does wonders for a business to ensure that they never fail to make a payment on time.
Early Payments Discounts
Early bird catches the worm! In business sense, we can relate to it with catching vendor offers and discounts that are offered on early payments. Keeping track of such multiple offers is not easy manually. But an automation platform can be customized to remind you of early payments. Payments can also be debited digitally through various payment modes inbuilt in the system and hence, a discount is never missed nor is a deadline!
Apart from these aforementioned benefits, there are many little things that make automation the best investment. With a one-time cost of subscribing to an automated ARs and APs platform, you can save up on many hidden costs and recurring costs that accumulate over a period of time. These automated systems streamline workflows efficiently, provide enhanced centralized control, regulate purchase-to-payments cycles and increase accuracy in the payments process. This added boost in cash-flow can help in utilizing the working capital for future expansion plans of the business. Another major advantage of automated accounts payable and accounts receivable is that the platform ensures round the clock compliance to updated legislature and government rules, thus avoiding any heavy non-compliance fines that can be imposed on the company during regular audits.
Still unsure whether automation works for you? Set up a free demo with EnKash and we would be happy to help! Our powerful platform can elevate your business to the next level and help you to become a true digital player in the business ecosphere!