Main benefits of automating invoices
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Automating billing processes improves the management and monitoring of accounts pending collection and payment. In addition to other tasks associated with these processes. These automation functions are within the reach of any organization, thanks to cloud accounting applications. From automatic invoice generation to integration with other systems, automating billing processes improves financial processes.
Manual invoice management is a bigger problem than many SMEs think. The use of unnecessary resources for the generation, processing and management of invoices is just the tip of the iceberg. To this could be added the excessive slowdown of the process. And the fact that staff spend their time on tasks that add less value to the organization.
Processing invoices manually can also negatively impact the customer experience. Billing errors can damage the relationship with the customer, even more so if they occur on a recurring basis.
Automate billing processes
On the contrary, automating billing processes allows you to improve the financial function because:
- The margin of error is reduced. Manual processes, sooner or later, generate errors in invoices. Associating incorrect prices, not applying the agreed discounts, sending the wrong invoice, duplicating invoices, etc. They are mistakes that not only cost time. As Pablo Couso, Datisa’s commercial director, explains, “an error in the issuance or management of an invoice also implies expenses. For example: undercharging a customer is lost revenue if you don’t spot the mistake early. Or paying the wrong provider also generates new charges for late payment to the correct provider. Exceeding the payment dates could also cause the initially agreed conditions to be modified, due to loss of confidence, for example”.
- It saves time. Especially when the automation of billing processes is part of a comprehensive accounting platform. This means that manual steps that slow down the process can be eliminated. For example, automation applications match purchase orders with corresponding invoices, include invoice templates, facilitate automatic submission of approval requests, and more. Pablo Couso says that “many times we find financial teams that tell us that they spend several days a month to manage invoices.” Greater automation means spending fewer days on these tasks. So that the time gained can be used in more strategic functions for the business: collection and payment forecasts, cost planning, etc.
Main benefits of automating billing processes
- Cash flow is improved. In fact, improving cash flow is one of the main reasons why SMEs invest in automating their billing processes. Couso assures that “the more days it takes to send an invoice, the more days it will take to process the payment”- Automation allows, for example, converting a budget or a delivery note into an invoice immediately. Invoice that will automatically send to the client.
On the other hand, if the invoice in question is easy for the customer to manage, for example, if the electronic invoice format is used, which enables multiple online payment options, it is possible that the income is made more quickly. Avoiding paper documents and all that goes with it can also speed up the payment process.
Similarly, automating vendor payment processes provides a more accurate view of business cash flow. A late bill can leave finance feeling like they have more cash than they actually have.
In short, cloud accounting solutions make it easy to automate, manage and track invoices. And they optimize the financial function. These ERP systems also provide a broader and more detailed view of business finances, providing accurate information on other related areas, such as inventory management.
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