Top 3 Tips for Better Accounts Receivable Invoices
Friday, March 20, 2020 / Updated: March 20, 2020
For a business owner, accounts receivable is one of the most important company metrics and also one of the more confusing ones. It refers to outstanding balances owed to a business by other parties. Where possible, payees expect payment at the time a service or a product is provided, but businesses often have some form of financing that allows a customer or a client to carry a balance which is to be paid off over time. We can think of this as a quasi IOU from a customer or a client to a business.
At the same time, companies also need to cope with accounts payable – the concept that is almost the exact opposite of accounts receivable; it refers to companies having lines of credit with suppliers which they pay off over time. One of the biggest challenges with both accounts receivable and accounts payable is that different companies structure and handle their processing very differently.
These challenges alone can make a lot of work for an accountant but when this task is undertaken manually, the likelihood of error increases even more. This is why so many businesses and accountants use automated accounts receivable software that reduces the inefficiency often associated with accounts receivable, reduces the amount of time it takes to ensure proper payment or receipt of payment, and also reduces the chance of error in the process.
Below are the top 3 tips for utilizing accounts receivable workflow software to maximize efficiency and reduce human error.
- Streamline Categorization and Proper Authorization
Not all suppliers and customers manage their bills in the same manner. Some will come to you in a digital format, others may come in as a more traditional hardcopy. Quality accounts receivable software makes processing a variety of documents in a range of different formats incredibly easy and straightforward. Such software will utilize several mechanisms to ensure that proper authorization is used when processing payments, and reduce the amount of time it takes to receive payment or pay vendors, while also ensuring a proper audit trail should something require some closer scrutiny.
This is important since there are likely to be many different people or companies that are being paid or invoiced. Quality software like Comindware Tracker makes automated authorization and processing as simple as just a few clicks of your mouse. It offers a user-friendly and easy-to-use interface, while still being a powerful toolset that provides real-time data and advanced analytics which can be invaluable to small- and medium-sized business owners. With a drag-and-drop interface, there is no need for someone with a ton of technical nor IT experience, so consider starting a 30-day free trial, today!
- Improve the Efficiency of Data Entry and Validation
Manual data entry is a time-consuming process and any process that requires manual data entry leaves the door open for human error. Accounts receivable software comes with automated data entry tools that quickly allow you to import any new data without the worry of human error. Validation software helps with catching any potential errors in data in real-time, also helping companies improve accounts and problems resolution efficiency.
- Don’t Slack on Verification
You never want to pay a bill or send a bill until you have verified that you really do need to make a payment or request one that is owed. Accounts receivable software offers automated mechanisms that verify the validity of payment requests and bills issued, to ensure that payments aren’t rendered or collected until they are verified by the software as being owed. This set of software tools will scan all relevant files to find any documentation associated with particular accounts as a means to verify payments before they are processed.
Businesses send and receive money regularly and many of them either extend credit to customers or utilize credit via suppliers and vendors. This means that accounts receivable, which is the metric that tracks outstanding payments, is so important for all businesses. The process of managing tons of different accounts, which are due at different times, and may be paid in different ways, can be a time-consuming and error-prone mess. This is why so many businesses rely on smart accounts receivable software that utilizes the latest technology and machine learning, integrating automation to make the process much more efficient and less prone to human error.
Comindware’s no-code workflow software empowers you to handle accounts receivable processing efficiently, ensure proper data entry, automatically verify invoice validity and much more.
Posted on: in Process World