Automation has revolutionized the best way finance groups function, with accounts payable (AP) automation being the go-to first step for companies trying to enhance effectivity and lower prices. Corporations like Nanonets and Centime have made AP processes smarter, quicker, and extra streamlined by means of cutting-edge expertise, whereas additionally paving the best way for extra complete monetary options.
However whereas automating AP is a crucial step, it’s just one facet of the equation. To actually unlock the complete potential of monetary workflows, controllers and CFOs at mid-market and enterprise organizations—particularly these searching for to optimize money movement and streamline monetary processes—should additionally deal with automating accounts receivable (AR). By complementing AP automation with AR automation, companies can obtain a seamless, built-in method to monetary administration that maximizes money movement, effectivity, and strategic decision-making.
The Rise of AP Automation
AP automation has remodeled how companies deal with outgoing funds. As an alternative of grappling with handbook bill processing, companies can depend on options like Nanonets to automate duties like:
- Optical Character Recognition (OCR) to extract information from invoices.
- Automating bill approvals to streamline workflows.
- Improved compliance and lowered dangers of duplicate or late funds.
These advances save time, scale back errors, and free finance groups to deal with extra strategic initiatives. However what in regards to the different facet of the monetary equation—incoming funds?
The Challenges of Disconnected Monetary Processes
When AP and AR processes function in silos, companies usually face:
- Fragmented Money Stream VisibilityAnd not using a unified view of incoming and outgoing funds, finance groups battle to foretell money movement precisely. This makes it more durable to plan for working capital wants.
- Inefficiencies in AR ProcessesGuide AR processes—akin to sending invoices, following up with prospects, and reconciling funds—gradual collections and delay money inflows.
- Siloed Information Hindering Choice-MakingWhen AP and AR information usually are not built-in, monetary leaders lack the complete image wanted to make strategic choices.
By addressing these gaps by means of AR automation, companies can bridge the divide and unlock higher monetary efficiency.
Why AR Automation Enhances AP Automation
1. Full Money Stream Visibility
Automating AR supplies real-time insights into incoming funds, complementing the outgoing cost visibility from AP automation. Collectively, they permit finance groups to see the complete image of their money movement, empowering them to make extra knowledgeable choices.
Options like Centime present dashboards that combine AP and AR information, giving finance groups a 360-degree view of monetary well being. This transparency is important for companies trying to keep agile and aggressive.
2. Streamlined Monetary Processes
Automating AR reduces the effort and time required for duties like invoicing, collections, and reconciliation. When mixed with AP automation, the result’s a totally streamlined monetary course of that reduces handbook effort, minimizes errors, and improves effectivity.
For instance, Centime’s AR automation capabilities embrace customer-level workflows and automatic collections, which velocity up money inflows whereas guaranteeing accuracy. By integrating each AP and AR automation, companies can optimize assets and deal with strategic progress initiatives.
3. Improved Working Capital Administration
Environment friendly AP and AR processes work hand-in-hand to optimize working capital. By automating AR, companies can scale back days gross sales excellent (DSO), speed up money inflows, and enhance liquidity. This enhances AP automation, which helps companies benefit from early cost reductions and higher handle outgoing money.
The mix of AP and AR automation permits companies to take care of a more healthy money movement, scale back dependency on exterior financing, and drive progress.
The Case for a Holistic Automation Technique
AP + AR Integration = Strategic Benefit
Companies that combine AP and AR automation achieve a major aggressive edge. With streamlined processes, enhanced money movement visibility, and lowered inefficiencies, finance groups can function extra strategically and deal with long-term progress.
Nanonets + Centime: A Profitable Pair
For companies already utilizing Nanonets for AP automation, including AR automation from a full-suite resolution like Centime is the following logical step. Collectively, these options create a cohesive monetary system that ensures no a part of your money movement is left unmanaged.
Conclusion
AP automation is a vital first step towards monetary transformation, nevertheless it’s not the tip of the journey. To unlock the complete cycle of monetary automation, companies should additionally deal with AR. By automating each AP and AR, firms can obtain seamless monetary processes, higher money movement administration, and a strategic edge in at the moment’s aggressive market.
If your online business has optimized AP, it’s time to consider AR. The following step to full monetary integration is right here—are you able to take it?