Articles

Benefits of Automated Software for AR & AP Management

by Harshita Joshi Digital Marketing Enthusiast
What is the most important thing for the success of a company? I would prefer to have two things: cash and employees.

You can't have a successful business if even one of the two is missing. A great team and healthy cash flow together make the business that grows.

But sometimes, in our eager interest to increase cash flow, we put unwanted pressure on the workforce. This, in turn, gives birth to highly pressured and unhappy employees.

You would be amazed to know that some of the busiest teams in a company are not the sales department, but the finance and accounting teams. They are constantly on their feet managing the company's finances. A lot of paperwork and never-ending approvals further complicate the work.

Manual AR & AP management is a complex task. Recording multiple invoices and expenses in registers embroils accountants in the task of recording AR & AP efficiently and without error. It's enormously draining and a hindrance to performing productive tasks.

To help your employees perform better, you need to make sure they are unburdened and calm. Mental rest gives them the energy to explore, innovate and proactively produce better ideas for business growth.

So how can you give them time?

Automate your AR and AP management. The seemingly small change is being able to automate to speed up your entire cash flow process. A customized software solution is the key that companies use to automate processes because it automates the entire workflow, approval process, payments and reminders.

A Custom software solution automates to eliminate some of the biggest AR & AP concerns


Read on to find out how automation improves processes.

1. Automated, accurate invoices


Making mistakes is a normal human phenomenon. Humans are prone to making many mistakes at work. The factors can range from forgetfulness to overlooking. But such mistakes cannot be accepted when you are communicating with clients.
While your accountants are constantly working to produce accurate invoices, it is reported that 40% of companies know that their "correct" invoices sometimes lack detail. This is often neglected and negatively impacts the company's reputation. And even puts you in potential legal liability.

But robots are not humans, their likelihood of making basic redundant errors is 98% less than humans. If you use a custom software solution for AR and AP management, you're likely to avoid most of the basic errors that occur with manual data entry. It even points out errors and mistakes and gives you the opportunity to correct them. This will save a lot of your employees' time and improve productivity.

2. Digital records as standard


When processing accounts payable and accounts receivable manually, a company generates heaps of papers that need to be managed. All these documents are crucial for an organization when they are legally required. As such, they must be carefully stored for easy access while still being secure.

While physical records can be easily lost, stolen, moved and destroyed, the constant pressure to keep them safe is high.

On the other hand, when you automate AR & AP with custom invoicing software, you are able to conveniently keep track of all your business activities and keep the records secure with the cloud. Invoicera's customized software gives you easier access anytime, anywhere with simple account login.

Thorough visibility into recorded actions increases accountability. This encourages a more accountable approach to work.

It also saves many hours spent manually managing documents in closets and rooms. Which, in 2020, is also out of date.

3. Coordinated workflow leads to faster process


One of the most necessary benefits of automated, customized invoice software is that all departments involved in the creation of a particular invoice can access the files simultaneously. The moment an invoice enters the ecosystem, the associated team members are notified and can review/release it simultaneously.

Convenient accessibility allows teams to collaborate on shared documents in real time, get clarifications, confirm details, and resolve inaccuracies.

This leads to fewer disputes and confusion, and process complexity decreases. Believe us when we say that the environment will be much happier and peaceful, and employees will be able to contribute better.

4. Faster Payments


Cash flow issues cause 82% of businesses to fail in their first few years. While many struggle to generate enough revenue to survive, most businesses face the problem of paying their customers on time.

The problem worsens when you have to rely on staff to manually send invoices on time each month. After all, a small delay can cause payments to be delayed by days or even months.

With automation through customized software, you can automatically generate invoices every month and send them directly to customers on a fixed date. This not only saves you time, but also increases the likelihood that you will receive payments early.

5. Reduced Human Errors


Even a small mistake in AR & AP management can complicate the entire process. One wrong digit can cause major confusion and mess everything up.
Again, automation plays a big role here. Pre-built templates and values ensure error-free invoices, even when created in a hurry. It also ensures that each invoice is carefully prepared and tracked throughout.

With less human intervention and automation, the likelihood of redundant errors decreases, resulting in happier customers.

All of these factors and more combine to increase your company's productivity, boosting the bottom line.

To Summarize

Now you know the top 5 benefits of automating the entire AR & AP process with custom software. Manual AR & AP management leads to employees being exhausted and under a lot of mental pressure. Such exhausted employees later become prone to errors and fail to meet expectations.

Most accounting teams hire additional staff to share the workload but forget how a simple customized software can automate their entire process and save $10000 salaries every month.

It makes your environment tension-free, improves processes, and gives your employees room to innovate more.

This is exactly what you want for your business.

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About Harshita Joshi Advanced   Digital Marketing Enthusiast

57 connections, 3 recommendations, 176 honor points.
Joined APSense since, September 23rd, 2020, From Delhi, India.

Created on Apr 6th 2021 07:20. Viewed 158 times.

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