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 reduce prices. Corporations like Nanonets and Centime have made AP processes smarter, sooner, 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 facet of the equation. To really unlock the total 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 give attention to 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 knowledge 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 give attention to extra strategic initiatives. However what concerning the different facet 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 Move VisibilityWith out a unified view of incoming and outgoing funds, finance groups wrestle to foretell money movement precisely. This makes it more durable to plan for working capital wants.
- Inefficiencies in AR ProcessesGuide AR processes—comparable to sending invoices, following up with clients, and reconciling funds—gradual collections and delay money inflows.
- Siloed Knowledge Hindering Determination-MakingWhen AP and AR knowledge aren’t built-in, monetary leaders lack the total 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 Move Visibility
Automating AR supplies real-time insights into incoming funds, complementing the outgoing fee visibility from AP automation. Collectively, they permit finance groups to see the total image of their money movement, empowering them to make extra knowledgeable choices.
Options like Centime present dashboards that combine AP and AR knowledge, 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 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 pace up money inflows whereas guaranteeing accuracy. By integrating each AP and AR automation, companies can optimize assets and give attention to 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 reap the benefits of early fee 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 acquire a big aggressive edge. With streamlined processes, enhanced money movement visibility, and lowered inefficiencies, finance groups can function extra strategically and give attention to long-term progress.
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 subsequent 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 crucial first step towards monetary transformation, nevertheless it’s not the tip of the journey. To unlock the total cycle of monetary automation, companies should additionally give attention to AR. By automating each AP and AR, corporations can obtain seamless monetary processes, higher money movement administration, and a strategic edge in at this time’s aggressive market.
If your online business has optimized AP, it’s time to consider AR. The subsequent step to full monetary integration is right here—are you able to take it?
