While many view account payable and account receivable functions as the only aspects of paperless transaction processing applications, there is a lot more behind the scenes to make this resource a viable option for all companies!
The most obvious benefit of switching (or starting up from) paperless transactions is the user-friendliness of software and the swift processing of transactions. A lot of what can be done online can be completed within a few minutes, and the cool thing about AP Automation is that once the accounts are set up and functioning, not much legwork is needed afterward. Aside from the obvious, here are three other reasons this kind of payment processing works well:
- Backup Processes
- Easier Information Management and Sharing
- Tuning Your IT Processes
- Financial Reports and Cash-Flow Tracking Capabilities
Many consider their online or software-based payment processing centers to be somewhat of a hub for their business, and it’s not entirely difficult to see why.
1 Back Up Your Processes and Retain Client Information
Accounts payable automation software generally produces a generalized focal point for client accounts and information. For example, software like Quickbooks retains client addresses (where needed), credit card information, telephone numbers, and any extra notes. It also maintains a record of previous goods and services sold and the payments and invoices used.
Most AP automation software also has cloud backup service, leaving very little data loss or corruption room. Because most of this software is not cloud-based inherently, you may need to download a separate application, use an advanced feature or sync up your software with a particular application designed for real-time data backup.
2 It’s Incredibly Useful to Have Intra-Team Communication
All CEOs and business owners are in the know about the efficiency of communicating quickly with their employees and letting their employees communicate amongst themselves. AP automation software has been a boon for quick communication in the business world, especially relaying client information.
Most software applications allow multiple users to access the hub from different spots, and communication is quick. Coworkers who may both be responsible for accounts receivable or payable can swiftly communicate on a professional platform–one which also records conversations (a handy resource for any HR-related issues that may crop up)
This employee-to-employee communication is the social lubricant that allows a business to operate, especially at more significant levels.
3 Your IT Processes Should Allow You to Transition
Most managed IT services offer a comprehensive data migration process because it takes a long time to get a company that operates on paper (or scattered software) onto a regulated system. The more complex a data migration process is, typically, the more a company needed to make a switch a long time ago into a better software setup. Since having paperless transactions typically means having client account information online and accessible, you will have already taken the most significant step in automating your business processes.
This can seem like a tangent, but it’s not, as many AP automation software is highly compatible with other business automation software. For example, Quickbooks alone is integrable with about 650 other business software apps. This software ranges from CRM (customer relation management) software to software like DocuSign.
AP automation gives your business a leg-up in funneling more efficient, powerful, and versatile technology into your business, starting from the inside out. For those taking this big step, fear not, as the most resolute and steadfast competitors to mainline AP processing software companies will guide you in your data transfers.
4 The Financial Tracking Benefits Allow Further Organization
Which AP Automation software, you are set up to track your expenses, incoming cash, and all that is in between. While not all software has the capability of being a full-fledged money tracking application, many are perfectly interpretable with apps that do. This is another tangent of integrable benefits: a different vision of financial input and output.
Most software is equipped with graphs and statistical reports that can be collected monthly, quarterly or yearly. This software is your accountant. You can also easily use this kind of software to generate information for your annual taxes.
Whether you or an employee is at the helm of your AP automation ship, you will find that the benefits swiftly outpace any difficulty in migrating your client data and payment processing information – and when you are ready to upgrade your methods again, rest assured that the software will probably be compatible for an even easier transfer.
For those of you who are wary of such a big step, consider getting in touch with an expert for tips and solutions for upgrading this key hub of your operational sector.
For more tech expertise, click here!
