Payment technology has emerged as a pivotal force driving substantial change in accounting systems and processes. The pace of this change is prompting businesses to complete a comprehensive reevaluation of their financial transaction practices. From streamlining invoicing procedures to strengthening cash flow management, innovation in payment technology is not only revolutionising financial processes but also significantly reshaping the professional landscape for accounting professionals. This article delves into the influence of tech-driven payment solutions on the accounts receivable and accounts payable functions, and its impact on employee productivity and engagement. Keep reading to learn more.
Automation and integration are critical for accounts receivable and accounts payable teams
Several systems and organisational functions need to share information to allow accounts receivable and accounts payable professionals to do their roles effectively. These systems include accounting, payments, ERP, and other industry-specific software, such as warehousing and supply chain management. When legacy systems are in place, getting data from one part of the business to another requires manual intervention, such as regular manual reporting and data entry by accounts payable and accounts receivable professionals. Not only is a lack of integration and limited automation across these teams more likely to cause errors, but it results in 39 per cent of accounting professionals spending over half their time on manual tasks. Aside from the inefficiencies and errors this causes, employee engagement can also be impacted when people spend too much time on manual, repetitive tasks. Especially when a business could invest in working smarter, reducing errors, and freeing people’s time for higher-value work.
Automating accounts receivable and accounts payable tasks such as invoice processing, supplier and customer inquiries, payment execution, PO matching, new supplier registrations, and payment reconciliation can save finance teams ten hours per week. And for forward-looking finance teams who have already automated their processes, almost half have improved their customer experience, and over 40 per cent provided a better supplier experience. Further, by using payment technology to drive integration and automation across business functions, accounts receivable and accounts payable professionals can work from a single source of digital truth for all data points. This saves time, reduces data entry errors and makes these roles more efficient and strategic.
The benefits of accounts receivable and accounts payable integration and automation
When accounts payable and accounts receivable processes have been digitised through tech-driven payment solutions, the functions can seamlessly integrate. This leads to stronger cash flow management and a range of other strategic and operational benefits, including:
- Efficiency through automation: Payment technology automates tasks, such as invoice processing, payment tracking, and reconciliation, saving time and improving accuracy.
- Real-time insights: With all of a business’s accounting and finance data in one place, up-to-the-minute financial data can be analysed, enabling stronger commercial decision-making and cash flow management.
- Stronger security: The robust security features ensure companies have the tools to reduce risk and prevent fraud to protect data anad financial assets.
- Improved employee productivity and engagement: Accurate data flow between business functions makes day-to-day tasks more efficient, eliminating the need for manual data entry and reporting. This leaves more time available for strategic work, which has a positive impact on employee productivity and engagement.
Transform your accounts receivable and accounts payable functions with Spenda
Accounts receivable and accounts payable functions are transforming through the implementation of tech-driven invoice management and payment solutions. By providing a single source of truth for data in every transaction and automating how this information is pushed across the business, accounting professionals save time by eliminating manual tasks and data entry. And with more time available, these professionals enjoy increased engagement and productivity by having the capacity to work on higher-value tasks that drive stronger strategic outcomes for businesses.
Spenda serves as both a technology solutions provider and a payment processor, delivering the essential infrastructure to streamline business processes before, during, and after payment events. Our comprehensive solution empowers businesses to effortlessly manage invoices, facilitate payments, and even access on-demand funding, all within the Spenda ecosystem. With our integrated platform, businesses can optimise their financial operations and enhance overall efficiency.
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This article is for general information purposes only. Consult a qualified financial advisor regarding any changes to or decisions about your business’s finances.