Workflow management is always a key concern for businesses if they are looking to improve efficiency while increasing profitability. Even more so is the focus on workflow management payments because, quite honestly, a company is dependent on positive cash flow if they not only want to stay solvent but make a tidy profit as well. Here are five ways to use automated workflow management payments to the benefit of your business.
1. Keeps Money Flowing with Same Day Direct Debit
Businesses in the UK are constantly getting bogged down with paperwork if they are operating their accounting departments in the traditional way. Often, this leads to major delays in collecting monies due to outstanding accounts. By setting up automated direct credit payments from customers, payments are made timely, ensuring positive cash flow to meet day to day operating costs.
2. Transparency and Visibility through Hierarchical Levels
Some accounting departments have several employees on staff. Some are in accounts receivable while others are in accounts payable. Even with accounting software loaded onto your company’s computer, there are times when the right-hand doesn’t know what the left hand is doing. This wastes so much time and effort communicating between departments.
With an automated government regulated BACS platform, one person is given administrator privileges and access and that person can see with the click of a mouse who is doing what and if there is a break in the chain. However, newer cloud-based platforms are even easier and more efficient to use because administrators can be out on the field with access to the platform from any mobile device. Efficiency is incredibly important when dealing with business payments so using the correct platform that ensures this is vital. One platform that you can learn more about is AccessPay, whose efficient payment operations you can learn about here; https://www.accesspay.com/corporate-business/efficiency/.
3. Reduces Amount of Time Spent on Accounts Receivable
How many times has your accounting department been tied up for days, weeks even, chasing down accounts receivable? By establishing direct credit with your customers, much of that time is eliminated. Payments are securely transmitted on a pre-arranged date from your customer’s financial institution to yours. This same day direct debits save invaluable time and, as mentioned, help to keep money flowing so that your company can operate from a positive cash flow perspective.
4. Reduction in Human Error
Human error in calculations has always been a major issue for companies large and small. There was a time in the not so distant past where accountants sat at their desks which were scattered with papers and a large leather-bound ledger in front of them. To the side sat a calculator which they manually entered numbers to tally up the day’s books. Transposition from the calculator to the ledger left huge discrepancies at times and it could take weeks if ever, to get to the missing or additional money which couldn’t be accounted for. Automation has drastically reduced the risk of human error.
5. Reduction in Payroll to Redirect Assets
One of the main concerns of today’s worker is that automation will put them out of jobs they had been doing for years on end. Actually, this needn’t be the case if astute company directors or owners learn to redirect assets. Employees are a company’s biggest and most important assets because they are what keeps a company growing. By automating many of the tasks within accounting, such as through automated workflow management payments, directors are free to reassign employees to other tasks.
In fact, automation still requires human intervention because it is a human who will be communicating with customers and suppliers and it will be a human who enters data and sets up debits or credits. Yes, payroll is reduced, but only in the sense that more efficient use is made of an employee’s time and efforts.
In the end, while many workers fear automation will put them out of jobs, in actual fact, the reverse is more often true. Automation helps businesses maintain higher profits, which then translates to job security. Automated workflow management payments are just one way in which a business can increase profits through better use of time and resources. Any company looking to grow beyond their current level of success should take the time to understand automation in everything from production to accounting. In today’s hi-tech world, automation is the way forward and never more important than in the process of timely and accurate payments that keep your company afloat.
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