Gone are the days when business leaders used to rely on traditional methods and spend copious amounts of hours operating their accounting and financial activities.
Thanks to modern technology, now all the manual tasks like payment collection, financial activities monitoring, tax strategy, invoice generation, etc., can be automated.
In fact, according to research[i], organizations that are adapting automation platforms witness 81% less processing costs and 73% faster processing cycle times.
From automating outstanding invoices to outstanding bills, the evolution of digital technology has made the accounts payable/accounts receivable (AP/AR) process, one of the most crucial accounting tasks a breeze.
With AP and AR automation, administrative tasks have become more efficient. But how are these operations automated? Is there any cloud-based solution for this?
Yes, NetSuite, an integrated cloud-based software suite for enterprise resource planning is the answer.
In this blog post, you’ll learn about AP and AR workflow and how NetSuite helps in automating these processes.
Why Should Accounting Automation Be Treated As a Priority?
In this highly-competitive and emerging market, performing manual, redundant tasks is risky as it eats up a lot of time and lowers business productivity.
So, to stay ahead of the curve, it is vital to prioritize accounting automation.
Not only does this bring new advances in accounting tasks but it also provides businesses the opportunity to increase their bottom line.
Understanding Accounts Payable (AP) and Accounts Receivable (AR) Workflow
The AP and AR processes are the major operations involved in cash flow management.
They have straightforward workflows but undergo manual, time-consuming operations.
Account Payable Workflow involves 3 stages:
– Receiving the invoices after purchasing goods from another vendor
– Recording the invoices in the AP ledger
– Sending payment and removing the entry from the account afterward
Account Receivable Workflow also involves 3 stages:
– Sending an invoice to the customer once they purchase the product
– Tracking the invoice for payment
– Receiving payment by the customer and marking it as ‘paid’ in the AR ledger
Why Do SMBs Demand AP/AR Automation?
Handling accounting and financial operations manually, especially the cash flow process while thriving to stay on top of the market can be challenging for SMEs nowadays.
Also, research shows[ii], 56% of SME owners witness cash flow pressure.
This creates bottlenecks in accounting performance that hinders business growth.
Along with this, there are constant shifts in the market and changes in the economic landscape that makes SME success slower.
And that’s why there’s an increasing demand for AP/AR automation.
With automation, SME leaders can easily expedite these cash flow processes and get a clear picture of their finances.
How Does NetSuite Help in Automating AP/AR Processes?
AP and AR processes are vital for a company’s financial flow.
So, to amplify business productivity and generate higher revenue, it is essential to automate these processes with the help of Oracle NetSuite.
If banking services are integrated with NetSuite’s cloud ERP, organizations can harness the power of NetSuite AR/AP automation to make invoice processing and billing easier.
With this, accountants can get access to better cash flow management and scale their AP and AR processes.
Here’s how NetSuite AP/AR automation works:
- Make Payments Faster: NetSuite Accounts Payable Automation stores vendors’ detailed records, captures incoming invoices and matches them to purchase orders & delivery receipts. As a result, it automatically processes payments when they fall within the predefined thresholds.
- Generate Cash Flow Reports Easily: NetSuite Accounts Receivable Automation allows easy invoicing, payment tracking, and collection management while providing real-time cash flow reports.
- Ease Additional Reporting: NetSuites’ AP and AR automation systems can be integrated with a new or existing ERP platform.
Handling the AP/AR workflow manually is time-consuming, challenging, and involves errors. However, by automating AP/AR processes, businesses can make these complex tasks easier.
NetSuite allows businesses to streamline their billing and invoice process, helping them to alleviate their productivity and efficiency. So, without waiting any further, make optimum use of this top-of-the-line ERP platform and get groundbreaking results.
Want to Make Optimum Use of NetSuite? Talk to Us!
If you wish to grab valuable insights about the upcoming ERP trends that NetSuite will bring to the table, download our exclusive eBook. Also, if you want to gain more potential from your existing NetSuite ERP, just drop us a line at [email protected] and our NetSuite mavens will take it from there.
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