Automation has revolutionized the best way finance groups function, with accounts payable (AP) automation being the go-to first step for companies seeking to enhance effectivity and reduce prices. Corporations like Nanonets and Centime have made AP processes smarter, quicker, and extra streamlined via cutting-edge know-how, whereas additionally paving the best way for extra complete monetary options.
However whereas automating AP is a vital step, it’s just one aspect of the equation. To really unlock the complete potential of economic workflows, controllers and CFOs at mid-market and enterprise organizations—particularly these searching for to optimize money move 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 strategy to monetary administration that maximizes money move, effectivity, and strategic decision-making.
The Rise of AP Automation
AP automation has remodeled how companies deal with outgoing funds. As a substitute 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 decreased 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 concerning the different aspect of the monetary equation—incoming funds?
The Challenges of Disconnected Monetary Processes
When AP and AR processes function in silos, companies typically face:
- Fragmented Money Stream VisibilityAnd not using a unified view of incoming and outgoing funds, finance groups wrestle to foretell money move precisely. This makes it more durable to plan for working capital wants.
- Inefficiencies in AR ProcessesHandbook AR processes—reminiscent of sending invoices, following up with prospects, and reconciling funds—gradual collections and delay money inflows.
- Siloed Information Hindering Resolution-MakingWhen AP and AR information aren’t built-in, monetary leaders lack the complete image wanted to make strategic choices.
By addressing these gaps via 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 offers real-time insights into incoming funds, complementing the outgoing cost visibility from AP automation. Collectively, they allow finance groups to see the complete image of their money move, 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 economic well being. This transparency is important for companies seeking 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 completely 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 development 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 make the most of 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 move, scale back dependency on exterior financing, and drive development.
The Case for a Holistic Automation Technique
AP + AR Integration = Strategic Benefit
Companies that combine AP and AR automation acquire a major aggressive edge. With streamlined processes, enhanced money move visibility, and decreased inefficiencies, finance groups can function extra strategically and deal with long-term development.
Nanonets + Centime: A Successful Pair
For companies already utilizing Nanonets for AP automation, including AR automation from a full-suite answer like Centime is the following logical step. Collectively, these options create a cohesive monetary system that ensures no a part of your money move is left unmanaged.
Conclusion
AP automation is a essential first step towards monetary transformation, however it’s not the top of the journey. To unlock the complete cycle of economic automation, companies should additionally deal with AR. By automating each AP and AR, corporations can obtain seamless monetary processes, higher money move administration, and a strategic edge in right this moment’s aggressive market.
If what you are promoting 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?
