If you want your small to medium-sized business (SMB) to continue thriving, you need strong, stable cash flow and adequate liquidity to capitalize on emerging growth opportunities.
Optimized accounts payable (AP) and accounts receivable (AR) processes are key to keeping the revenue streaming in. However, managing these processes can be challenging, especially if you’re already juggling various other responsibilities.
While you may not be able to bring in a dedicated accounting professional at this stage in your growth journey, you can take the hassle out of AR/AP management with enterprise resource planning (ERP) software.
ERP software is characterized by a modular platform that encompasses various business management tools, including accounting applications, inventory management functionalities, and more.
These technologies have the power to transform your business into an organized, cohesive entity by providing you with a single source of truth for all your accounting data.
5 Benefits of ERP Software for AR and AP
By using an ERP platform to manage your AR and AP processes, you stand to see the following benefits:
1. Increase Efficiency with Automation
Managing accounts receivable and accounts payable manually is tedious, time-consuming, and inefficient. Adopting modern ERP software gives you access to a wide range of process automation tools designed to simplify AR and AP processing.
The top ERP platforms include machine learning (ML) and artificial intelligence (AI) technologies that eliminate the need for spreadsheets, reduce your reliance on paper documents, and automate reconciliation functions.
Automating your accounts receivable and accounts payable functions can decrease the likelihood of payment delays, stabilize your cash flow, and give you and your team more time to focus on dynamic tasks.
2. Achieve End-to-End Visibility
Do you know precisely how much money you’re owed and what your current expenses are at any given moment? If you can’t view this information at a glance, your business suffers from poor financial visibility. A lack of AR and AP visibility can impede decision-making and lead to missed opportunities.
When you adopt modern ERP software, all your business data is consolidated in one convenient location. Your ERP becomes your single source of truth, meaning you can access up-to-the-minute financial data at any time.
You can use this holistic view of your financial health to inform decision-making and capitalize on emerging growth opportunities.
3. Create Audit-Ready Records
If you operate in a tightly regulated industry like healthcare or finance, you’re well aware of the importance of staying audit-ready. Falling behind on your record-keeping processes can leave your business exposed to fines and other regulatory penalties that can negatively impact your bottom line.
ERP software helps you comply with local, state, and federal regulatory guidelines to avoid fines and protect business continuity. With the right solution, you can customize your platform with custom compliance rules and keep up with the latest regulatory requirements.
4. Elevate Your Security
Cloud-based ERP software is far more secure than antiquated solutions or old-school approaches involving physical documents. With a quality ERP in place, you can restrict user access, implement stringent login requirements, create automated backups, and deploy robust cybersecurity tools.
Moving your critical financial data to an ERP solution can help you keep your information secure and protect your brand reputation.
5. Enhance Vendor Relationships
Want to maintain healthy relationships with your vendors and suppliers? If so, you must promptly pay all outstanding balances and implement an efficient accounts payable workflow.
By the same token, you need transparent, frictionless accounts receivable and billing processes so your partners know precisely what they owe and why. Promptly delivering invoices to your clients will expedite the AR workflow and help you maintain adequate cash flow.
Turn AR and AP into an Organizational Strength with ASC
Managing accounts receivable and accounts payable doesn’t have to be a recurring nightmare. When you combine the right software with an experienced ERP implementation partner, you can make managing your accounts a frictionless process.
Acumatica ERP software is the ideal platform for managing your AR and AP processes. Advanced Solution and Consulting Co. (ASC) is the partner you need to set the stage for a seamless deployment.
At ASC, we specialize in helping our clients overcome their greatest growth challenges by configuring and deploying Acumatica ERP software. To learn more, contact ASC today.
Additional Financial Management Resources
SOLVING ACCOUNTS PAYABLE CHALLENGES WITH CLOUD ERP
6 BENEFITS OF ERP FOR ACCOUNTING AND FINANCIAL MANAGEMENT
SELLING AND COLLECTING: WHY ACCOUNTS RECEIVABLE NEEDS TO FACILITATE YOUR SALES MODEL