Improving Productivity and Cashflow with Automation
Taking control of your cashflow and managing debtors are challenging elements to running a successful business. Automation can be used to free up your time for other tasks and often makes for faster, more cost-effective processes. While there are many different ways of maintaining cashflow, automation is one of the first steps to get ahead of it.
To make things easier for you, we have put together a number of ways to use automation and significantly improve your productivity and cashflow
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Automating Accounts Receivable
One specific way of managing your cashflow better is through automating your accounts receivable. Accounts receivable tasks are easily programmed through your accounting software. This is because they can follow the ‘if…then’ process of automation. Programming accounts receivable invoices or notifications to be sent to businesses on planned schedules frees up human labour for other more complex tasks, and means invoices are more likely to be paid sooner. In fact, 59 percent of invoices are paid after three reminders. Ensuring this is done on time and effectively through automation will help bring you more funds in a shorter time period.
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Automating Payroll
Other aspects of cashflow and debtor payments like payroll, credit and inventory can also be automated. Automating payroll, for example, means payments are much less likely to be made late, and it removes the arduous process of entering data, like timesheets. When you automate your payroll, you also prevent the chances of human error. Human error can lead to compliance audits, timesheet fraud and scheduling inefficiencies, meaning increased costs down the line and the unnecessary tightening of cashflow.
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Integrated Apps
There is an increasing number of web applications and add-ons now on the market that can sync up and integrate with cloud account systems to provide further features and benefits. Online software can offer small businesses significant timesaving and a more streamlined way to manage their cashflow. By automating aspects like lodging receipts through software like Hubdoc (free with most Xero subscriptions) or Dext, you can easily stay up to date with your current and forecasted financial position and spend more time on other core business activities.
If you would like assistance with managing your cashflow/debtors through automation, please let us know at Advivo Business Advisors & Accountants. An outsider to your day-to-day processes is often best placed to question their necessity and to identify inefficiency. We can also suggest many options currently available on the market that can automate many basic business tasks.
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