If you’re a business owner, you’re probably looking for ways to streamline different company operations. In today’s digital world, there are a myriad of computer programs, systems, and services to keep your business running at its best with minimal effort. Your accounting department is a great place to implement some of these programs, as many of these functions can now be automated! Of course, there is no replacement for a hardworking crew, but you can help your team members enjoy a smoother, more productive workflow.
One clever way to help your accounting team is by setting up accounts receivable financing. When you provide a product or service, your team will send out bills or invoices to your customers, and then you have to wait to get paid. While most people have good intentions and usually pay right away, some bills can slip through the cracks or, in rare cases, be ignored altogether. That’s your money floating around that belongs in the bank! With accounts receivable financing, your business gets a loan based on a percentage of what clients owe to your business. Basically, your team will not have to chase down payment or wonder when the next check will come in; that capital is there immediately.
A direct loan is the most popular way to receive accounts receivable financing. The lending company fronts the entire amount of your company’s accounts receivable balances, and then when payments come in, your team will pay the lender back, albeit with some interest and fees. Typically no one likes interest and fees; however, this could be a great solution if your business needs money immediately or just needs a little time to catch up after a slow season. What’s more, if your business doesn’t qualify for a traditional loan or business line of credit, accounts receivable financing could be the perfect option to get the boost your business needs to grow.
When it comes to day-to-day operations, there are many ways to help your accounting team to simplify their tasks. For example, generating invoices, printing them up, buying stamps, and mailing them out to clients can be a thing of the past for your business. This is just one of the many tedious processes that can be avoided with workflow automation.
You can also automate purchasing; no more taking tedious inventory and looking around for that one vendor’s number you always forget. Everything you’ve ordered, received, and sold is automatically tracked in a program! In addition, things like employee travel expense reports, contract management, and even cross-team collaboration can all be automatically tracked and generated.
Payroll is another tiresome task best left to automation. With programs like Quickbooks, employees’ hours, salaries, paychecks, vacation and sick time, and other payroll needs can be automatically tracked, calculated, and distributed with the click of a button. Employees also have access to an app where they can view their pay stubs, and change their direct deposit options or tax withholdings at the click of a button. Once you have all the information entered for every employee, you just let it do its thing! Besides saving time and effort, automating payroll decreases the possibility of human error and keeps sensitive employee and company data secure.
There are so many options nowadays to make life easier for both you as a business owner and your employees. If your business needs funds and your clients’ aren’t paying you fast enough, AR financing could be the perfect option to give yourself a leg up. If you need to free up time in your schedule, automation just may be the solution you seek. Automating systems won’t take the place of your valuable employees, but it will make your staff’s office lives much simpler and more productive. Once you have the funding your business needs through accounts receivable financing, and you’ve streamlined your accounting procedures, you will be free to take your business to new heights.