Read about the digital transformation of commercial payments and how to automate your enterprise cash cycle.
Why You Need an Accounts Receivable Process Flowchart
Feb 28, 2024 by Zazil Martinez
Consider creating a flowchart if you're looking for ways to improve your accounts receivable process. An accounts receivable flowchart visually represents the collection process, highlighting areas of inefficiency and opportunities for automation. Accounts receivable flowcharts are excellent for helping accounts receivable departments to visualize their processes. They often help pinpoint which areas are ripe for automation or improvement. Not only can they effectively keep your team on the same page and train new employees, but they can also help you see areas of inefficiency.
How to Find the Best AR Automation Software for Your Business
Feb 23, 2024 by Zazil Martinez
Finance professionals always search for ways to enhance efficiency and streamline financial operations. One powerful solution to address these challenges is finding the best AR automation software. But what exactly does this mean for CFOs and finance teams? Imagine that tedious tasks of manual invoicing, chasing payments, and reconciling accounts are in the past. The best AR automation software offers a solution that automates and optimizes accounts receivable management. This lets finance professionals focus on strategic initiatives rather than mundane administrative tasks. But with so many available options, choosing the best AR automation software can be daunting. Here's a comprehensive guide on what to look for to select the best one for your business.
Top Challenges Accounts Receivable Teams Face and How to Solve Them
Feb 20, 2024 by Zazil Martinez
In today's fast-paced digital marketplace, accounts receivable (AR) teams face numerous challenges that impact a company's cash flow and growth. Even with an optimal rhythm, some remain significant. Common accounts receivable challenges include high DSO, ledger disorganization, poor communication, and inadequate policies. Streamlining processes, offering multiple payment options, going paperless, updating customer information, and automating AR can overcome these. A structured credit policy can help identify suitable customers. A weak accounts receivable management process can cause several other unintended consequences, including:
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How Reducing Your DSO Can Solve Cash Flow Woes
Dec 26, 2023 by Kelsey Banerjee
DSO measures the time it takes to receive revenue. A low DSO indicates prompt payments, and a high DSO suggests payment delays. Understanding DSO and comparing it to industry benchmarks is vital for financial decisions.
How Do You Become Sage Intacct Certified?
Dec 20, 2023 by Kelsey Banerjee
With roughly 3,000 customers worldwide, Sage Intacct is one of the top financial management platforms for growing and mid-market companies. It's also one of the top options for teaching users how to master everything the platform offers.
The Benefits of Digital Payments for B2B
Dec 12, 2023 by Kelsey Banerjee
The shift towards digital payments has led to fast and efficient business growth opportunities. However, most business accounting and finance departments still need to catch up in adopting this payment method. By eliminating paper checks, the AR process becomes more effective, leading to faster payment cycles and efficient collections. Today, a B2B transaction is no longer a back-office-only process. Businesses view the payment experience as another customer touchpoint. One study found that the checkout process influences whether a customer will make another purchase from the vendor in the future. Still, technological shifts have proved that digital payments bring fast and efficient growth opportunities for businesses. Consumer payments have seen a digital revolution so drastic that people hardly set foot in a bank anymore. Most money transfers happen via apps and online platforms. Contactless payment is the present, not the future of digital payments. However, business accounting and finance departments still need to catch up when adopting this payment method. According to PYMNTS, 40% of B2B payments are still done manually, using paper-based methods. Due to the pandemic, we've seen many challenges confronting the digital B2B payment space. The sudden shift to digital solutions and remote processes exposed the costly infrastructure gaps and inefficiencies of a financial system worth hundreds of trillions of dollars. Yet, businesses depend mainly on in-person processes, slow-moving checks, and expensive paper invoices. If, like many CFOs and AR managers, you're looking into digital payment platforms and electronic remittance solutions, you can read on as we walk through the benefits of shifting to digital payment solutions.
Wire Transfer vs. Direct Deposit — the Pros and Cons of Each
Nov 21, 2023 by Kelsey Banerjee
A substantial advantage of online business is offering our customers many payment methods. But two methods stand out regarding security, convenience, and cost-effectiveness: wire transfer and direct deposit. These two payment options have so much in common that it's easy to confuse them. The similarities are stark, as each is a mode of electronic funds transfer that deals directly with financial institutions. However, understanding the differences can help you and your AR team determine whether direct deposit payments or wire transfers (or both) make the most sense for your business. Read on for all the necessary information, including the pros and cons and when to choose one.
How Much is it Costing Your Business to Accept Paper Checks?
Nov 9, 2023 by Kelsey Banerjee
Paper checks are one of the most costly ways to collect payments. Still, many businesses think getting paid by check is the most affordable method. While only 33% of businesses make payments by check, in 2021, 91% of organizations across the U.S. continued to receive checks, even though they understand the associated costs and risks. Of course, there are also many indirect costs to check processing, such as labor and processing fees. The bill can quickly eat into your bottom line — and that's before potential errors. It's no wonder businesses have been shifting from paper checks to digital alternatives that offer more convenience, data, control, and automation. The 2020 pandemic only accelerated the shift as consumers demanded contactless payments. Ditching paper-based payment methods can help companies cut costs by reducing the amount of manual work and payment fraud risk. In most cases, the solution will integrate with your ERP, making it easy for AR teams to navigate. Let's explore what it costs your business to accept paper checks and alternative payment options.
How Accounts Receivable Automation Generates Healthy Cash Flow
Sep 19, 2023 by Kelsey Banerjee
When collecting accounts receivables (AR), businesses have their work cut out for them. Manual processes, legacy infrastructure, and an uncertain economy determine how soon organizations get paid. One study found that 49% of B2B invoices become overdue. And if a company doesn't collect that amount within three months, 26% of those invoices will be deemed uncollectible. Accounting professionals also struggle with scale. As the required manual tasks create up to 60 hours of additional work per month, it's unsurprising that the finance team is experiencing burnout without overcoming cash flow bottlenecks. Accounts receivable software offers one solution to these challenges. A best-in-class accounts receivable automation software reduces staff workload, standardizes the AR process, and saves your organization money. Your automated AR workflow could even increase your revenue. In this guide, we'll cover everything you need to know about an automated accounts receivable management solution, including:
What is NetSuite Certification? 6 Common Questions Answered
Sep 15, 2023 by Kelsey Banerjee
NetSuite certification helps you become an expert in this cloud-based ERP system. It offers a range of certifications for specific skills and areas of functionality. Businesses need to have the skills to use the system and find experts who can help with training and support. It is an ongoing process that helps drive productivity, efficiency, and growth.
The Ultimate Guide to B2B Payment Processing
Sep 12, 2023 by Kelsey Banerjee
The business-to-business (B2B) payment processing infrastructure has evolved so rapidly that defining a solid, consistent, and secure payment strategy appears overwhelming. There are too many options, especially as digital payments continue to rise. However, optimizing your payments workflow is one of the best investments you can make in your business. An efficient B2B payments system frees up cash flow, decreases late payments, and saves time for your accounts receivables (AR) team. It can also boost your customer satisfaction. In this comprehensive guide, we'll cover everything you need to know for a well-oiled payment system, including:
5 Methods You Can Use to Reduce Late Payments
Aug 30, 2023 by Kelsey Banerjee
Maintaining a steady cash flow is essential to running a business, but keeping a steady revenue stream is more challenging than it sounds. According to a PYMNTS report, 93% of companies experience late payments. Payment delays pressure the accounts receivable (AR) team and accounts payable (AP). Delayed payment can mean straining vendor relationships, missing out on an early payment discount, and weak cash flow. In other words, when a company receives late payments consistently, day-to-day operations and overall progress slow down. But you can avoid a potential overdue payment and bad debt in the first place. Healthy cash flow boils down to streamlining your process, starting with your customers. By understanding why your customers are paying late, you can take steps to create an actionable plan to reduce late payments and thrive as a business. Here are 5 easy-to-implement methods, including automation, to limit late payments from your customers.
Business Disbursements: The Essential Guide
Aug 22, 2023 by Kelsey Banerjee
What is a disbursement? And what is the disbursement of funds? Understanding these definitions — and knowing how disbursements differ from other types of cash outflow like reimbursements and payments — is critical to ensuring your business avoids accounting errors that could be detrimental to your bottom line.