Every morning, you walk to the Starbucks on the corner and order your usual: a grande drip coffee. You get to the counter where the barista tells you that Starbucks now only serves bubble tea. Alarmed, you walk out away without fueling your caffeine addiction and feeling confused.
There’s something about taking comfort in habits and consistency. It’s for this reason, we create routines for ourselves, retail chains design their layouts to be nearly identical from store to store, and In-N-Out basically hasn’t changed its menu in over 70 years.
As humans, we are averse to change. When we feel out of our element, we resist change and seek comfort.
These same principles apply to the world of accounting as well. Years ago, accounting was a tedious job; there were manual entries that 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. However, when it comes to technology, change is the only constant. As technology touches every area in a business, companies must embrace technology to maintain a competitive advantage.
How Technology Can Improve Accounting
Newer technologies used in accounting can impact software, methods, capabilities, and ultimately produces improved processes and results for the clients we’ve worked with and those who rely on us for technical accounting solutions.
For example, with the right technologies in place, companies can improve the efficiency of both their accounts payable and receivable, saving time and creating scalability, which is valuable for any company experiencing growth.
What Are The Benefits Of An Accounts Payable Solution?
Many technology tools 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 predefined workflow through the cloud-base service and set up rules allowing you to define your AP process, offer one-click payment options, and improve organization.
This process can eliminate the chance of late invoices, along with the risk of sensitive information not reaching the public eye. With cloud-based technology solutions, all data is secure and available only to authorized users.
Integrations with cloud-based software provide the opportunity to set up an Automated Clearing House (ACH) payments or checks that get generated and mailed. Setting up an automated payment process like Bill.com is an excellent way of managing AR/AP to receive, route, and pay invoices electronically in real-time while integrating with popular accounting software, like Quickbooks.
Integrations can 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 promptly.
Cloud-based invoicing gives you the ability to accept payments online through ACH, credit card, or PayPal. You can set up branded customer portals where they can view their invoices, statements, and past payments. They are then able to use self-service options 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 enforcement 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 the date and time stamping
- Automated to-do list reminders
- Cloud-based documentation storage
Advantages Of Accounting And Technology Integration
In one of 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 the 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 proper 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.