Every morning, you walk to the Starbucks on the corner and order your usual: a grande drip. You get to the counter where the barista tells you that Starbucks now only serves Japanese teas. While this is may not be the end of the world, it does certainly throw a wrench in your morning.
There’s comfort in consistency. That’s exactly why we create and follow routines for ourselves, retail chains design their store layouts to be near replicas, and Starbucks hasn’t changed their menu in 30 years.
As humans, we are averse to change. When we feel out of our element, we resist change and seek comfort.
Years ago, accounting was a tedious job; entries were done manually which resulted in errors and missing money. Once computer programs were created to automate accounting tasks, the margin for error decreased, work was faster, and the overall accounting industry became more efficient.
Change is not an easy feat; not for people and especially not for companies. But when it comes to technology, change is the only constant. And because technology touches every area in a business, companies must embrace technology in order to maintain a competitive advantage.
Technology Used in Accounting
New technology used in accounting can impact software, methods, and possibilities and produce better results for clients we’ve worked with and who rely on us for their accounting solutions.
With the right accounting technologies, companies can improve the efficiency of both their accounts payable and accounts receivable, saving time and creating scalability, which is valuable for any company experiencing growth.
Accounts Payable Solution (AP)
There are many technology tools that help create accounts payable processes and get your vendors paid faster, including:
Cloud-based programs such as QuickBooks, Netsuite, Sage Intacct, and Xero, are great for invoicing. Cloud-based technologies are beneficial to a company because they allow employees to do work anytime, anywhere.
Creating payment approval processes
Another key benefit is in creating a payment approval process. While approving invoices, you can use a workflow through the cloud and set up rules allowing you to define your AP process, offer one-click payment options, and increase organization. It can also eliminate the chance of invoices being paid late because they are lost on desks, along with the risk of sensitive information being left out for the public eye. With cloud-based technology solutions, all information is secure and available only to authorized users.
Integrations with cloud-based software provide the opportunity to set up Automated Clearing House (ACH) payments or checks that get generated and mailed. Setting up an automated payment process like Bill.com is a great way of managing AR/AP to receive, route, and pay invoices electronically in real time while integrating with popular accounting software, like Quickbooks. Integrations are able to catch mistakes by setting up audit trails, being able to search and find transactions and payments, and run custom accounting reports. This eliminates the risk of double paying, incorrect entry, and other human errors which are harder to detect and can cause issues down the road.
Accounts Receivable Solution (AR)
For a company to remain successful, they must bill and collect payments from clients or customers in a timely manner.
Cloud-based invoicing gives you the ability to accept payments online through ACH, credit card, or PayPal. You are able to set up branded customer portals where they can view their invoices, statements, and past payments. They are then able to use self-service to make payments.
There are many additional benefits to having a comprehensive and cohesive accounts receivable solution:
- Bank-vetted, leading-edge security
- Automation of business rules for payment approvals – allows strict enforcements and accountability
- No need for check stock in the office
- Clear separation of duties with defined roles and system access
- Detailed audit trails show who did what with date and time stamping
- Automated to do list reminders
- Cloud-based documentation storage
Get Paid Faster with Accounting and Technology Integration
In one our online webinars, our client SkyriverIT shared how they used the integration of technology and accounting to get paid faster. The average time was 60 days to collect payment. After integrating technology and accounting recommendations, they improved their process and average payment time was reduced to 7-10 days!
How was this possible? SkyriverIT used part of their marketing department’s technology, a drip campaign, and created automated accounting payment reminders in conjunction with marketing autoresponders. The benefits of using drip campaigns for accounting can be phenomenal and here’s why:
- Use email marketing for payments
- Through the drip campaign, you can see who has and hasn’t opened invoices
- You can set up specific autoresponders based on their engagement (email opens, links clicked, downloaded invoices, etc.)
- Engage with the customers as often as you’d like
- Customized communications based on customer engagement reduced payment time from 60 days to 7-10 days on average
We Can Help
If you need assistance in taking advantage of the right accounting technology to run your business, contact Signature Analytics. We can set up a consultation to learn about your specific business needs and advise on the right accounting technology to benefit your business.
There are many other accounting technology solutions available with tons of features that will save you valuable time and help move cash forward. Make an impact on managing your business and contact us today.