Automation can help streamline your business processes, reduce inefficiencies, provide transparency and lower costs to effectively generate a higher ROI. Even though this is a proven method to improve your processes and it can lead to wins down the road, it’s no magic pill that can fix all that’s wrong with your business.
That’s why it’s a good idea to start small when introducing automation. This allows you to see what works best, before applying the solution to other areas.
Automating your accounts payable department is a great way to ease your business into automation. You can begin by using services such as, invoice templates created by FreshBooks, which will help provide resources and guidance along the way.
When you automate your invoice processing process, you get to eliminate any inefficient, manual processes that may still be in place. These can slow down payments and result in penalties because of processing errors.
By setting up invoice automation, you gain the benefits outlined here, as well.
1. Access to Real-Time Income Statements
When you automate invoicing, it ensures your profitability reporting is always up to the minute and accurate. As a result, you can make data-driven, real-time decisions without having to verify what orders have been invoiced, and which ones have not. Or worse, you don’t have to wait for the accounting system you use to catch up with your actual sales.
2. Smoother Workflow
If you rely on your workers to manually process your invoices, then your business becomes susceptible to a wide array of risks and inefficiency. For example, invoices may be lost, which leads to time wasted trying to find them when they are needed. Also, there’s always mistakes related to manual data entry.
With automation, you can avoid all of these unnecessary manual steps. In the long run, this will help you prevent errors and save time.
3. Receive Your Payments Faster
When you are able to send out an invoice directly after a product is shipped or job is complete, it increases the likelihood of receiving an early or on-time payment from your customers. This can help to increase your short-term cash-on-hand and allows you to pay off your invoices sooner.
Don’t make the mistake of putting off the sending of an invoice. This can have negative effects on your bottom line.
4. More Efficient Audits
If you have to deal with an audit, it’s going to be less painful and less stressful if you are using automated invoice processing. After all, with this in place, you can run reports on-demand, which will allow you to easily and quickly pinpoint any discrepancies that may be present.
Additionally, this technology allows you to eliminate the last-minute scramble to find documents that are missing. As a result, an audit will be much less disruptive to you and your staff.
5. Faster and More Competitive Business
If you are not currently taking advantage of automated business processes, then there is a good chance that your competition is way ahead of you. As your competitors gain more and more traction using automation, it’s going to be more and more difficult for you to catch up. After all, your clients are eventually going to realize they can get faster service by going to the “other guy.”
Also, as the digital age continues to evolve and alter how consumers behave, automated workplaces are able to respond quickly and adapt, while the ones that rely on manual processes have bigger challenges ahead.
If you are ready to automate your invoices, then make a move. It will be beneficial for you, your business and your bottom line in the long run, and your staff will appreciate this change for more efficiency.