by Jose Jimenez | Dec 23, 2020 | AP Automation
By Matthew Albert
A while back, your humble blogger here asked you to join him on a time-travel trip back to grade school. Let’s revisit that trip for a brief moment. Remember that group project example? Well here’s another question about it: Was there a person in your group who couldn’t wait to point out the inefficiency of the group’s approach? Maybe it was you? (Your blogger was DEFINITELY that person.)
That question still applies today when we consider how and when businesses should adapt to more modern digital methods. Simply put, businesses that go digital survive. Businesses that don’t will die. However, there’s more to it. You have to know why you’re implementing specific digital ideas in order to get the biggest bang for your buck. With many digital routes available, there have to be at least a few listed below that can work for you.
Gains From Going Digital
As always, each business has its own needs and its own remedies for those needs. What works for one business doesn’t necessarily work for everyone else. So, with that idea in mind, here are some general trends about the advantages of specific digital practices:
- Staying Competitive in the Online Market. By creating an online marketing presence (usually through social media), you don’t miss out on customers who are entering the field for the first time. Potential new customers surf the web every day as their own needs change. You want them to find your business first.
- Hiring Creative Employees. As the world goes more digital, so does its children. Today, more and more young employees grow up with a device surgically fused to their hand and probably have a magnetic chip implanted in their opposite hand’s thumb (so we hear, anyway). In other words, those employees’ skill sets are best suited for companies that go digital. Don’t miss out on their expertise and especially their potential!
- Using Analytics to Make Better Decisions. By going digital, your staff can find it easier to pull various forms of data about sales, marketing, web site visits, etc. in order to show you where your business could stand to reach more customers. Refusing to go digital makes it nearly impossible to generate enough reliable data to make informed decisions.
- Costs Stay Down. When you consider how digital ads reach more customers than non-digital ads, it makes more sense to pay for digital advertising. In the long run, even if digital ads may seem to cost more than print ads on the surface, you’re actually saving money if you measure cost per view. For example, let’s say you pay $500 for online ads and $250 for print ads. Based on your tracking the online ads attract 500 new customers while the print ads generate 125. The online ads are actually costing you less because you’re essentially spending 1 dollar for each new customer while spending twice as much for each new customer from the print ads.
The Buy-In Is Critical
Okay, so digital is good. Fantastic. Now how do you convince the bulk of your non-digital Luddite team to go with that plan? You can’t just go up to your team, wave your hand in front of them and tell them “These aren’t the methods you are looking for.”
Unfortunately, when you need to convince lots of people to change their mind, you sort of need a campaign-esque approach for fast results. Here’s what we suggest:
- Get your CFO to buy in. If the CFO buys in big, there’s a good chance you’ll get a few more dominoes to fall just on that get. Your CFO will likely be able to show how the business can increase operations without needing to add employees, which means more money for the business.
- Get the rest of the staff to buy-in by showing how their jobs get easier with technology. Think about how happy your staff will be when they will no longer have to do a considerable amount of tasks by hand. Then think about the amount of unintentional human errors will be reduced as well. Now think about how ALL of that means less stress for everyone.
- Treat training as a team experience. Communicate to the rest of your staff that some of this digital conversion is new for you, too. Therefore, you’re all learning at the same time. Showing staff that you’re putting in the time along with them adds to the community feel a successful business typically has.
- Incorporate your digital conversion into your marketing. Work with your AP department to create a brief presentation or brochure that highlights all of the new and/or improved services they can do with a digital conversion. Showing your clients that you’ve gone digital will make them more likely to stick with you. Don’t discount the idea that you might even inspire some of your own clients to go digital themselves, thereby creating less stress for both customer and servicer.
This topic is one of those where it’s not really a both-sides kind of thing. If you were to list the pros and cons of digital vs. non-digital, it’s a landslide every time in favor of technology. Acquiescing to the changing needs of the world isn’t a sign of weakness. It’s a sign of forethought and innovation that leads to greater success for all involved. We’re also pretty sure that when you give out those employee bonuses and raises after record takings since your digital conversion, you’ll be the hero in this story.
by Jose Jimenez | Dec 19, 2020 | Accounts Payable
By Matthew Albert
Jump in your Wayback Machine (no Hot Tub Time Machine, please; we’re social distancing) and join us for a trip to your 5th grade classroom. As we hop out, we see…..AH! We’re just in time to watch your 5th grade self begin a group assignment with the classmates at your 4-desk table. Now, if we had to guess, in a group project, you were probably one of these types of students:
- The one who got frustrated because everyone else was too stupid to do the task the right way, so you did it all yourself.
- The one who feigned incompetence to get the entire group to do the work for you.
- The one who was definitely good enough to do the whole project, but you were fine letting someone else take the reins because they were liable to snap at any point.
- The consummate team player who actually knew how to have everyone get along and enjoy each other’s company before someone got bored and had to go to the restroom.
Well that visit to the past was fun. Let’s come back to 2020. If you’re someone who heads up a department or possibly runs your own business, you are now in your 5th grade teacher’s shoes every single day. You have employees who are basically working on a group project that lasts all day, every day. And you probably have some employees that rock it all the time, some employees that ride coattails, some employees that are trying hard and learning, and (unfortunately) some employees that you’d gladly boot if someone better came along. Whether you want to admit it or not, the reality is that you need all of these employees to be a cohesive group in order to make the business succeed. One of the best ways to grow this cohesion is by reducing employee turnover. (By the way, your child’s teachers still gladly accept certain, uh, BEvERages, for holiday presents.)
Let’s take a look at some of the ways you can keep your employees productive and willing to work for you each year.
- Demonstrate that every employee is valued. Employees feel valued when they know you hear them and pay thoughtful attention to them. Some employees open up in large group settings. Some are more willing to talk in 1-on-1 environments. Learn what your employees prefer and interact with them in those settings. If you lead a department or run a small business, try to find a way to hold regular individual meetings with your employees. Make these conversations about business strategies but also about their own goals and what you can do to support them. If you run a larger business, give your department heads sufficient time to meet with their own people.
- Craft backup plans for protocols. When things go awry, stress goes up for your employees and you. Having backup plans reduces stress and keeps everyone calm. Calm employees stay. Stressed employees leave.
- Hold monthly staff meetings. These meetings should review the most important procedures to ensure quality control. However, you’ll want to incorporate a fun activity or brief game of some kind that fosters teamwork. Sacrificing a few minutes of productivity to maintain collegiality does not destroy your bottom line. You’ll make those lost minutes back when your employees are fully synergized.
- Open your door. Even if you already meet regularly with employees, you can’t always schedule when they’ll need you the most. Keep your door open and let them talk to you. If your employees like working for you, they’ll rarely abuse this time because they’ll be motivated to get the job done. If they do abuse this policy, though, it’s on you to let them know directly and plainly.
- Know what your employees do. When you hire an employee to do a set of specific tasks, you need to have a good idea of what you’re actually asking them to do. Learn what your employees do, even if it’s way beyond your own skill range. Simply knowing a little about each of your employees’ jobs goes a long way in helping you relate to them during conversations.
If these seem simple, it’s because they are. The basic rules? Treat your employees like people, hold them realistically accountable, and make it known when you like what they’re doing for you.
by Jose Jimenez | Dec 12, 2020 | Accounts Payable
By Matthew Albert
Consultation with a client? Check.
Services rendered? Check.
Client happy? BIG check.
Payment collected? *crickets*
Payment collected? *Bueller…Bueller…Bueller…*
PAYMENT collected? *Frye…Frye…Frye…*
Ah yes, the old “How do I get the money?” problem. Let’s face it: Cash is outdated and has been for some time. You probably already know that.
So how do you get your money in a safe, timely manner? Obviously, you want to make sure you don’t get ripped off. At the same time, you also want to make sure the client’s payment experience is smooth, too. After all, if paying you is a hassle, your client won’t want to be your client for much longer.
Let’s take a look at possible payment methods and weigh the benefits against the drawbacks.
Checks
Let’s start with the oldest known form of payment we currently have–the check. The concept is simple: I give you a piece of paper that says I want to give you this much money; however, all of that money is in another building.
For all of the ease checks give us, the bottom line is that they are still paper-based, inefficient in today’s world, and subject to misplacement. Not great.
Wire Transfers
Now we’re talking speed here! Wire transfers give you peace of mind that money sent on one day arrives the same day. All you need are routing numbers and account numbers. The bank takes care of the rest.
As an added bonus, wire transfers are pretty secure, too. Unfortunately, there are a couple of drawbacks. The first is that wire transfers often carry high fees for the customer. The second is that if wiring money from one bank account to another, banks can sometimes place holds of approximately 3 days (sometimes more) on when those funds are available. That kind of defeats the purpose of same-day service.
For all the headaches that may cause you, wire transfers are still a pretty good move for your business.
Automated Clearing House (ACH)
Similar to wire transfers, ACH payments provide ease and speed. This method is the one most companies prefer when they pay employees via direct deposit.
Compared to paper checks, these metaphorical “eChecks” never get lost in the mail. They also carry lower fees than typical wire transfers. You can even lump payments together to the same payee and not incur extra fees.
On the flip side, ACH payments sometimes get held up for 1-2 days for verification and an additional week to complete the transfer. If you’re in need of warp speed, it’s not the best option.
Credit Cards
Who would’ve thought that the idea for Diners Club would turn into the behemoth today known as the credit card industry? Actually, the people behind the Diners Club probably did. But anyway, here is another electronic option that’s widely used around the world. Most of the benefits are related to convenience.
People who prefer to pay with cards often get benefits on their cards (e.g. points, frequent flyer miles, cash back, etc.), they don’t incur extra fees by using the cards, and they usually have them available more frequently than cash. Business credit cards function mostly the same way and provide extra security by not forcing people to use their personal cards and get reimbursed. On top of that, credit card companies will also give you tidy, itemized reports to help with your recordkeeping.
At the same time, it’s not necessarily a slam dunk decision. Credit cards often carry merchant fees where the recipient of payment gets assessed a fee rather than the person using the card. If your business is getting a bunch of these fees, then you’re not getting your full profits.
Digital Wallets
Digital wallets use software to store credit card numbers, debit card numbers, and other payment information you may have. This info is often stored on phones, computers, in the cloud, and any other electronic device you can think of that has the capacity to store data. Gone are the days of trying to remember a bunch of digits, expiration date, and security code. Who has time for that when you’re reluctantly binge-watching that latest show you’ve been guilted into?
Of all the payment methods listed here, this one will probably feel the fastest to you. It’s also the safest in terms of public health. We’re in a pandemic right now. There’s no need to pass physical objects back and forth with each other if we don’t have to. Digital wallets solve that problem.
So why wouldn’t you accept digital wallet payments? Well, they’re essentially useless if your area does not have reliable internet service. Since you’re reading this blog, though, you probably have reliable service somewhere. The other big fear is hacking. If you encounter a data breach, let the pain begin.
In all honesty, while the bad times could be terribly bad, they’re still rare if you’re responsible. The positives likely outweigh the negatives.
There you have it!
A set of options, each with their pros and cons. Which one should you use, though? That decision will depend on the needs of your business and how quickly you need transactions processed. Consult with your AP employees and make the choice that best fits your company’s needs.
by Jose Jimenez | Dec 5, 2020 | AP Automation
By Natalie Thirtle
The growth of technology has caused important change for many businesses. More employees are finding their workspace moving online, especially during a time of pandemic we find ourselves in now. This transition to an online platform is beneficial in many ways to businesses, as virtual programs make businesses faster, are less time consuming, and provide easier networking. The field of accounting has been especially influenced by the advancement of technology in the workspace. In this article, we will discuss the changing field of accounting, how technology benefits the accountant, and many common services used successfully by accounting firms presently.
The Accountant
Traditionally, accounting has been a job of record keeping and data entry. Thanks to the advancement of technology, however, computers are able to perform these tasks in more efficient and less time consuming ways. This does not mean that accountants are out of a job. On the contrary, the shift of tedious number keeping has freed up accountants for a more personal role. Accountants today are advisors. They provide critical data analysis which companies need to make important business decisions. The technology we have now can not replace the sharpness and life skills of a human mind.
Technology in Accounting
Almost all accountants report feeling the field is undergoing a shift in culture, and this is largely in part the access technology and artificial intelligence (AI) brings. Technology enables all businesses to be more efficient and effective. During a time of global pandemic crisis, it enables people to work remotely and stay safe. Over half of accountants report they plan on using AI, and these numbers will most likely increase as improvements and innovations are made.
Common Services
The following are some common online sources used by accountants.
Outsourcing Accounting Responsibilities
Outsourcing involves hiring an outside party that will perform services and make good that would have traditionally been done by the hiring company’s own employees. Outsourcing is not only an effective cost cutter, but it also allows companies to spend more time focusing on their limited sources. Outsourcing is a great option for smaller accounting firms, as it allows them to focus on primary operations.
Cloud-Based Accounting
As the internet becomes more efficient more companies are finding cloud-based services to be a worthwhile investment. There is a great variety in the types of servers, including analytics, storage, and software to name a few. Businesses who use cloud-based services are able to access their systems anytime, which is convenient for odd-end working hours. These servers also allow creations of workflows, which saves time.
Social Media
One of the cheapest and most available tools to any business is social media. Social media allows accountants to keep in touch with their clients easier, and in addition gives them a larger networking outreach to find potential clientele. Some of the best chances accounting firms have for finding potential clients is on social media. Facebook and Instagram are two of the most popular social media platforms used by businesses. Facebook in particular is a great resource for accounting firms, because they can create a business page with informational posts on services or reviews from previous clients.
As technology programs and services continue to evolve, one can expect more accounting firms to integrate these services into their job routines. These programs allow accountants to be free of rigorous book keeping, and focus their energy into advising and aiding their clientele. It is important for accounting firms to keep an open mind to using technology in their daily job routine. As more businesses move online, consumers and clients will become more accustomed and expectant to having online service available.
If you are an accountant or firm who is looking to expand your technological resources, contact an oAppsNET Partners consultant to learn more today.
by Jose Jimenez | Dec 5, 2020 | AP Automation
By Matthew Albert
Get Ready for the AP Stakes!
“Final horses being loaded into the gates. We’re just moments away from the AP Stakes.
And they’re off! It’s Manual Paper breaking hard to the rail followed by Capture, then by Match, then by Approval just a few lengths behind, with Archive falling back fast in the early going.
They reach the first turn and already the pace is painfully slow. Manual Paper still leads, but here comes Remote Working to slow down Manual Paper! Not far behind are Chronic Late Payments and Angry Vendors.
The field gets to the backstretch with Manual Paper desperately clinging to the lead. Remote Working is starting to make a move and Extraordinary Inefficiency is staying in the fight! Here comes Domino Inaccuracies to make a challenge for the front! And lagging FAR FAR behind is Strategic Initiatives.
They make the third turn and I can’t see Anything Modern whatsoever. He’s a total afterthought!
To the final turn now and Low Morale is now a force to be reckoned with. DOWN THE STRETCH THEY COME! It’s Manual Paper and Remote Working trying to hold off Angry Vendors and Chronic Late Payments…BUT HERE COMES NEGATIVE REPUTATION! It’s going to be close! Here they are! Down to the wire! And it will be MASSIVE AUDIT coming out of nowhere to take the crown!
Manual Paper just didn’t have enough and couldn’t overcome the consistent charge from Remote Working. All the way back still trying to finish is Strategic Initiative and Modern Automation, which was never in the picture to begin with.”
Don’t Become Obsolete. Automate!
During a pandemic, the longer you wait to automate, the more you risk your own department becoming so obsolete that it could run an even sadder AP Stakes. Even though times are tough and new challenges confront you every day, this time is now the absolute best to automate more of your operations. Think about the day-to-day AP issues you deal with in a “normal” world, now think about how those issues get exacerbated in a pandemic world. That’s not good for business.
Again, the time to automate is now! As each day goes by, your AP employees get swamped and swamped and swamped to the point where they can’t possibly see the light at the end of the tunnel. No group of hardworking employees should bust their rear ends that much and have so little to show for it–especially when they aren’t set up for success.
Think about what you could do with an AP department that spent more time analyzing data rather than handling tedious invoicing and checking in with you on a litany of exceptions to rules that only slow them down? You could have an AP department that could come to you with large-scale data sets about where your money is going, which in turn leads to smarter decision-making by both your team and you. What’s the point about tracking the money if you don’t do something with that data in the first place?
Three Steps to Move Toward Automation
That’s where automation comes in. Let’s take a look at some of the steps you can do to move your AP department into a world:
- Invest in software that can scan invoices and process electronic invoices. So much time gets saved here right here. Invoice Scanning programs increase the chances that you can turn more invoices around in one day, far faster than what human employees could do.
- Take all of your procedures and standardize them. Limiting the exceptions to rules makes processing go faster and decreases invoice turnover time.
- Use your AP employees’ time for more useful tasks. Purchasing the right software not only frees up time from invoicing but can also export data in pretty much any way you want. Have your employees analyze this data and suggest possible strategic initiatives based on what the data says.
Let’s face it–automation can seem precarious when you’re used to paper. But consider how much more you can do when you’re not bogged down by the time-consuming tasks that prevent you from really thinking hard about your goals.
Don’t be scared of automation. Embrace it! Your employees just might thank you in return with more creative solutions for your business.
