Implementing Automated AP/AR Workflows

Manual processing of Accounts Payable (AP) and Accounts Receivable (AR) is time-consuming, prone to error, and a major drain on small business resources. Automation is no longer just for large corporations; it's essential for improving cash flow and accuracy in any modern business. Here’s how you can implement automated AP/AR workflows.

Accounts Payable (AP) Automation

AP automation streamlines the process from receiving an invoice to paying a vendor, reducing the risk of late fees and fraud.

• Invoice Capture: Use tools like Bill.com or Melio to digitally capture invoice data, eliminating manual entry.
• Approval Workflow: Set up automated routing for invoice approval based on dollar amount or vendor, ensuring proper oversight before payment.
• Digital Payments: Move away from paper checks. Schedule payments electronically (ACH or virtual cards) directly within your accounting system or integrated tool.
• Integration: Ensure your AP tool integrates seamlessly with your general ledger (e.g., QuickBooks or NetSuite) to automatically categorize expenses.

Accounts Receivable (AR) Automation

AR automation speeds up the time it takes to get paid, drastically improving your Cash Conversion Cycle.

• Automated Invoicing: Generate and send professional invoices immediately upon service completion using your accounting software.
• Online Payment Options: Offer clients easy online payment methods (credit card, ACH) directly linked to the invoice via tools like Stripe or PayPal.
• Automated Reminders: Set up automated, polite email reminders for invoices that are nearing or past their due date. This reduces the need for manual follow-up.
• Data Synchronization: Confirm that all payment data instantly syncs back to your AR ledger, ensuring real-time accurate financial statements.