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Things To Look for In Online Payables and Receivables Solutions

Businesses undertake accounts receivable and payment activities to maintain their cash flow, operating cycle, and routine functioning. While the receivables bring money into the company, payables lead to outflows for expenses, purchases, etc. Optimizing both functions is crucial in keeping the costs low and efficiency high. Many businesses are now opting for specialized payables and accounts receivable software. The automated solutions incorporate the much-needed speed in the functioning, eliminating the inconsistencies and errors in AP and AR processing. However, many companies face reluctance in choosing these solutions due to high initial costs.  

Accounts Receivable Process

Automating accounts receivable software and payables function involves using tools and technology to expedite the processes. These resources include optical character recognition to extract crucial information from scanned documents, images, PDFs, and other formats, data mining, warehousing, indexing, etc. While choosing to implement such solutions, businesses must consider the following things: 

Workflow-Driven Technologies

The accounts receivable software must streamline the workflows. It must value every step in the accounts payable and receivable function. Automating monotonous activities using appropriate technologies will provide effective results. The receivables process involves: 

• Generating custom invoices. 

• Sending them quickly to the customers. 

• Reminding them automatically to pay. 

After conducting three-way matching, the payables function approves invoices and enters them into the accounting books. It enables the reconciliation of components for accuracy. When these activities get automated, firms can fix the loopholes and keep every personnel on the same page with real-time access to information.  

Automatic Reconciliation

The accounting software enables automated reconciliation by importing documents from relevant sources. Machine learning, robotic process automation, and artificial intelligence functions allow reconciliation. Businesses need not pick every item manually to verify and evaluate its accuracy. The system alerts if there's any discrepancy. The accounts payable software takes purchase orders, goods receipts, and invoice documents from different sources and conducts three-way matching.  

Quicken Recurring Payments and Receivables

The accounts receivable software handles the recurring transactions swiftly. Businesses need to set the schedule in the software. The due dates from the invoices allow firms to send automated customer reminders. Similarly, they get notifications about the upcoming payables to prevent missing details. Handling recurring activities manually can be highly time-consuming and tedious. Thus, automation keeps it running seamlessly without lags or hindrances.  

Security Measures

The accounts receivable software must prevent leaks, hacking, misuse, and misappropriation of data. It must use the latest technologies like advanced encryption, multifactor authentication, etc.  

To ease your accounts receivable burden, you can outsource your process to accounts receivable services providers. Many service providers provide accounts receivable services and similar services like virtual accounts payable services, accounts reconciliation, invoicing and many other account tasks to make your accounting process easy.


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