by Sophia Riley | Oct 26, 2023 | Virtual Cards
Virtual cards are digital cards purposely for facilitating online transactions. You won’t receive a plastic card that you can hold and swipe; virtual cards exist as a string of numbers and information you can input for online purchases.
Virtual cards are linked to your credit or debit card. When you create a virtual card, you can use it online the same way you’d use your physical card. The difference is that the virtual card provides a secondary level of security. You can add restrictions to the virtual card, such as a spending limit, category limitation, or expiration date, thereby preventing misuse of the card information.
Below are the benefits of virtual cards and barriers to virtual card adoption. Read on to learn.
Why Virtual Cards Stand Out
Virtual cards stand out for several reasons, making them an increasingly popular and convenient payment option in various industries. Here are some key factors that make virtual cards stand out:
Cost-Effective: Virtual cards can be more cost-effective for businesses as they eliminate the need for physical card production and distribution. This can lead to cost savings, especially for companies that issue cards frequently, such as for travel expenses or employee allowances.
Basically, the elimination of paper checks and wire transfers reduces the cost of postage, shipping, and handling. These cards also reduce the risk of check fraud and provide an accurate, real-time view of your payment activities.
Convenient for Online Transactions: Virtual cards are ideal for online shopping and e-commerce transactions. Users can generate a new virtual card for each online purchase, ensuring higher security and reducing the risk of unauthorized charges on their primary card.
Enhanced Security: Virtual cards are typically designed for single or limited-use purposes, reducing the risk of fraud and unauthorized transactions. Once the virtual card is used or expired, it becomes useless, making it harder for potential fraudsters to exploit it.
Privacy and Anonymity: Virtual cards can be issued without revealing the user’s personal or financial information. This feature is particularly beneficial when making online purchases from unfamiliar or less secure websites.
Convenience: Virtual cards can be generated instantly through various platforms and mobile apps, eliminating the need for physical card issuance and delivery. They are beneficial for online shopping and subscriptions.
Budgeting and Control: Since virtual cards can be generated for specific amounts and timeframes, they are excellent tools for managing budgets and preventing overspending. Users can set limits on the virtual cards, which helps control expenses effectively.
Travel and Expense Management: Virtual cards are especially valuable for business travel and expense management. Companies can issue virtual cards to employees for specific trips or expenditures, simplifying reconciliation and reducing administrative burdens.
Improved Vendor Relationships: Virtual cards provide a secure and faster payment option, which can significantly improve relationships with suppliers. With virtual cards, businesses can make payments faster, which helps to improve cash flow and vendor relationships. The virtual card payment process also provides a level of transparency, as suppliers can track transactions in real-time, improving trust and collaboration.
Increased Flexibility: Virtual cards offer businesses increased flexibility in the payment process. Creating one-time-use cards with specific spending limits or merchant categories enables businesses to control their payments better. Virtual cards also offer the flexibility to make payments from anywhere, anytime, providing a reliable payment option for remote workers.
Environmentally Friendly: Virtual cards are an environmentally friendly option for payment. By choosing virtual cards over traditional payment methods like checks or ACH transfers, businesses can reduce the amount of paper and energy consumed. This is a small but important step towards improving sustainability and reducing carbon footprints.
Improved Cash Flow: Virtual cards allow businesses to improve their cash flow management. By using virtual cards to pay suppliers, companies can take advantage of extended payment terms often offered. Additionally, suppliers can be paid quickly once an invoice is received, allowing businesses to establish better supplier relationships and manage cash flow more effectively.
Biggest Barriers to Virtual Card Adoption
Here are some of the biggest barriers to virtual card adoption up until that point:
Lack of Awareness: Many businesses and individuals were unaware of virtual card options and their benefits. They were less likely to adopt them without understanding how virtual cards work and their advantages.
Traditional Mindset: Some businesses and individuals were accustomed to using physical cards or other payment methods. Adopting virtual cards required a shift in mindset and internal processes, which can be challenging for some organizations.
Security Concerns: One of the primary concerns with virtual cards is security. Companies and consumers worry about the potential for data breaches, fraud, or unauthorized access to virtual card information, leading to hesitancy in adopting this technology.
Limited Acceptance: Virtual cards might not be accepted everywhere, particularly in physical stores or smaller online merchants that have not yet adopted this payment method. This limitation could make consumers and businesses reluctant to rely solely on virtual cards for their transactions.
Education and Awareness: Both consumers and businesses may not be familiar with virtual cards and how they work. Lack of education and awareness can slow adoption as people may be resistant to change or unsure of the benefits.
Perceived Complexity: Some users may perceive virtual cards as more complicated than traditional payment methods, leading to resistance to adopting this technology.
Legacy Systems: Most organizations, especially larger enterprises, may have legacy payment systems in place that do not easily support virtual cards. Upgrading or replacing these systems can be a significant hurdle to adoption.
Lack of Incentives: Without proper incentives or cost savings, businesses and consumers may not see a strong motivation to switch from traditional payment methods to virtual cards.
Regulatory and Compliance Concerns: Depending on the region and industry, there may be specific regulations and compliance requirements that virtual card providers must meet. Adhering to these standards can be a challenge and may impact adoption.
Conclusion
Virtual cards are quickly becoming a popular form of payment for businesses. By using virtual cards to pay suppliers, businesses enjoy numerous benefits compared to traditional payment methods. Beyond the enhanced security and reduced administrative costs, virtual cards improve cash flow management, provide reward points and cashback opportunities, and are environmentally friendly. As businesses continue looking for ways to streamline their operations and reduce costs, virtual cards offer a compelling solution worthy of consideration.
by Sophia Riley | Oct 24, 2023 | Technology, Virtual Cards
The world has embraced cashless systems, specifically following the COVID-19 pandemic. Among the recent technologies are virtual cards characterized by cost-efficient, fast, and secure payments. However, many businesses and individuals have yet to fully adopt these payment solutions.
Virtual card adoption is the process of individuals or businesses increasingly using virtual cards for various financial transactions instead of traditional physical credit or debit cards. Virtual cards are essentially digital representations of payment cards that exist only in electronic form and are not issued physically.
In this blog, we’ll break down four steps to help you optimize virtual card adoption.
Understanding Virtual Cards
The first step to optimal virtual card adoption is understanding what they are. A virtual card is a unique 16-digit card number, CVV code, and expiration date generated using software for a specific business transaction. They are disposable and only valid for one-time use during the transaction. This makes it hard for scammers to access your card. They are also ideal for online shopping, among other transactions with participating traders. Understanding virtual cards will help grasp their benefits and how best to use them.
Choosing a Virtual Card Provider
Businesses or individuals need to choose a virtual card provider when considering virtual cards. Before selecting one, take the time to research its reputation and customer service. You want alternative options like online or phone support if needed. Also, consider the card’s features, including the spending limits, payment methods, and currencies supported. A good virtual card provider should give you a user-friendly platform with informative documentation to aid you in using the virtual card effectively.
Seamless Financial Integration
After settling on a provider, seamless financial integration is the next step in optimizing virtual card adoption. A well-performing virtual card will allow for smooth integration with Internal accounting software. Integration ensures that all the financial data is consolidated in one platform and that transaction information is stored automatically. This helps reduce administrative costs while allowing firms to monitor and analyze expenses in real-time.
Employee Training
After integrating virtual cards with accounting software, the last step to reach optimal virtual card adoption is to train employees on how to use the virtual card system. The training should cover how virtual cards work and their unique security features. This includes how to use virtual cards to protect against fraud or incorrect usage. Comprehensive training ensures that virtual cards are used effectively, minimizing potential losses and maximizing efficiency and security. Conclusion: Virtual cards are gradually becoming more common in business transactions.
Tips to Consider for Virtual Card Adoption
Adopting virtual cards can bring numerous benefits to businesses, including increased security, better control over expenses, and streamlined payment processes. However, it’s essential to plan and strategize the adoption process to effectively maximize virtual cards’ advantages.
Here are some tips to consider for virtual card adoption:
Understand your needs: Assess your current payment processes and identify pain points and inefficiencies. Determine the areas where virtual cards can impact most significantly and align the adoption strategy accordingly.
Choose the right provider: Research and select a reputable virtual card provider with features and capabilities matching your business requirements. Look for factors like security features, ease of integration, reporting options, and customer support.
Establish clear policies and guidelines: Develop comprehensive guidelines for using virtual cards, including spending limits, authorized users, allowed expenses, and reporting procedures. Ensuring everyone understands the rules will promote compliance and reduce misuse.
Train employees: Provide adequate training to employees who will use virtual cards. They should understand how to access and utilize the virtual cards, follow security protocols, and report any issues promptly.
Integrate with expense management systems: If your organization uses expense management software, ensure that the chosen virtual card solution seamlessly integrates with it. The integration will streamline the reconciliation process and enhance reporting capabilities.
Emphasize security measures: Virtual cards offer enhanced security, but it’s crucial to reinforce best practices. Encourage employees to use secure networks, avoid sharing card details, and regularly update passwords.
Monitor and analyze spending: Regularly review transactions and analyze spending patterns. Monitoring expenses can help detect any discrepancies or potential misuse of virtual cards.
Set expiration dates: Consider setting expiration dates for virtual cards, especially for one-time or limited-use cards. This helps reduce the risk of unauthorized transactions if card information is compromised.
Regularly review the program: Evaluate the effectiveness of the virtual card program periodically. Gather user and stakeholder feedback, and make necessary adjustments to optimize the benefits.
Gradual implementation: If transitioning from traditional payment methods to virtual cards, consider a gradual implementation to allow employees to adapt to the new process smoothly.
Communicate the benefits: Clearly communicate the benefits of virtual card adoption to employees and stakeholders. Highlight the advantages in terms of efficiency, security, and cost savings to build enthusiasm and support for the new payment method.
Why You Should Consider Virtual Card Adoption
Reduced Costs: Virtual card adoption offers significant cost savings opportunities. With paper checks and plastic credit cards, you’ll have to deal with printing, processing, and mailing costs. On the other hand, virtual cards eliminate all these costs and save you time and money. You can also avoid late payment charges and other fees by using virtual cards.
Streamlined processes: Virtual cards streamline expense management processes when dealing with vendors, accounts payable, and other administrative teams. Electronic payments and automated financial processes can be integrated to reduce human error and save time. Invoices and receipts can be digitized and matched electronically to the related charges in real-time, further simplifying the accounting process.
Improved Vendor Relations: Vendors are happy to receive virtual cards because the payment is immediate, and they save the hassle of dealing with physical checks. This can lead to better payment terms, discounts, and other perks, as vendors may be more likely to offer favorable rates to immediate payers.
With the four simplified steps we’ve provided for optimizing virtual card adoption, securing transactions while keeping operations cost-efficient has become more comfortable. With only a basic understanding of virtual cards, choosing a virtual provider, integration with financial platforms, and employee training, you can now successfully and correctly use virtual cards. So, go ahead and take advantage of the benefits virtual cards have to offer.
by Sophia Riley | Oct 19, 2023 | Accounts Receivable, Automation
As businesses embrace the era of digital transformation, it’s vital for your company to adopt advanced technological solutions. One trend that’s rapidly growing is accounts receivable automation. In this guide, you’ll learn about the realm of accounts receivable automation and its significance to your enterprise.
What’s AR Automation?
The process of automating accounts receivable involves integrating cutting-edge technology to streamline operational procedures and modernize financial transactions. Managing AR traditionally is labor intensive and demands significant effort.
Consider a scenario where collections department personnel manually email each customer, sending individual account statements with friendly payment reminders. The same individual diligently maintains a comprehensive spreadsheet for all past-due accounts and records every transaction and invoice. They also handle cash application tasks, manually reconciling payments with bank statements. Keeping up with all these tasks while receiving customer orders can be quite challenging.
Thankfully, accounts receivable automation has changed this landscape by substituting manual tasks with technology-driven solutions. The introduction of automation software has eliminated the manual burden and revamped how AR processes are conducted.
How Does AR Automation Boost Efficiency?
Companies should adopt accounts receivable automation because it boosts operational efficiency. By delegating simple and repetitive tasks to software, companies can free their employees’ time to let them concentrate on more impactful and strategic endeavors. This boosts long-term productivity and yields long-term time and cost savings.
Automating tasks such as processing transactions, emailing communication for invoicing, and billing and payment collection leads to natural improvements in efficiency. Companies with automated AR systems are more likely to gain a scalability advantage and expand their operations without needing to allocate more time or additional personnel. This scalable approach enables organizations to work smarter, not harder, as they leverage technology to optimize their workflow.
Another significant benefit of utilizing software in accounts receivable processes is mitigating human error. Implementing automation significantly reduces the likelihood of errors that could have severe consequences in financial matters. Whether it’s a misplaced comma or an extra zero in an invoice, such inaccuracies can trigger disputes, deductions, and other cumbersome challenges you can avoid through automation. Businesses that rely on technology for precise and consistent execution maintain seamless financial transactions and establish a higher level of trust with their clients.
Steps To Automate AR
Managing accounts receivable involves multiple intricate steps that can be optimized through automation. These steps include:
Electronic Invoicing Presentment And Payment (EIPP)
Traditional paper-based invoicing is tedious and time-consuming. EIPP streamlines the invoicing process and delivers them electronically by mail. This automation expedites the invoicing cycle, saving valuable time and resources. Moreover, the inclusion of an online payment portal empowers customers to access their account statements and invoices, monitor new orders, make secure payments, and establish direct communication with the company. Including EIPP in your business model will boost customer satisfaction and cut down manual administrative efforts.
Disputes And Deductions Resolution
Handling disputes and deductions can be a laborious process when managed manually. Adopting automation in this area will let your company swiftly identify and validate disputed charges, leading to timely invoice adjustments. It will also minimize delays in receipt payments, accelerate resolution times, and ensure concerns are addressed promptly and precisely.
Cash Application
Manual cash application is prone to errors. Integrating cash management AR software with your system will let you effortlessly process and post payments from various channels. Automated reconciled accounts will also reduce your chances of errors and expedite payment processing, ultimately leading to improved cash flow management and a healthier financial position.
How To Select An AR Automation Software
Selecting the most suitable AR automation software is a crucial decision that can affect your company’s financial operations. When evaluating options, here are five essential factors you should consider:
Customizability And Scalability
Look for AR automation software that offers flexibility and can be tailored to meet your specific business requirements. A customizable solution will ensure the software aligns seamlessly with your existing workflows and processes. Additionally, opt for a platform that can scale alongside your company’s growth, accommodate increased transaction volumes, and evolve without disrupting operations.
Integration Capabilities
Seamless integration with your current financial systems is essential for a smooth transition to automation. An AR automation software that can effortlessly integrate with your ERP, CRM, and other essential software solutions can be ideal because it will improve data consistency and minimize duplication of efforts. The tool should also be compatible with accounting software for hassle-free implementation and overall efficiency.
Security And Compliance
When handling sensitive financial data, security is of utmost importance. Ensure the AR automation software you select adheres to industry-standard security protocols and follows data protection regulations. It should also have robust encryption measures, multi-factor authentication, and secure data storage facilities to safeguard against cyber threats and maintain your customers’ information.
User-Friendly Interface And Training Support
A user-friendly interface is essential to promote the widespread adoption of automation software among your team. Seek solutions with intuitive dashboards and navigation to minimize the learning curve and maximize productivity. Additionally, check for comprehensive training and customer support offerings. This will enable you to empower your staff with the necessary knowledge and skills they need to make the most of the software’s capabilities.
Reporting And Analytics
Valuable insights from robust reporting and analytics functionalities can help you make informed decisions. An AR automation software that provides real-time data on cash flow, customer behavior, and payment patterns will let you identify trends, optimize processes, and proactively address potential issues. The software you choose should also be able to generate customized reports tailored to your specific metrics and KPIs. Such software will let you effectively track and measure the impact of automation on your business performance.
The Bottom Line
As a beginner, you need to know the intricacies of AR if you want to streamline your financial transactions, optimize cash flow, and develop a strong client relationship. Hopefully, this guide has helped you learn about the role of AR automation in invoice management and payment processing. Include automation in your business today to witness firsthand its tremendous impact on elevating operational efficiencies and driving sustainable growth.
by Sophia Riley | Oct 17, 2023 | Accounts Receivable, Automation
Accounts receivable lies at the core of well-managed accounting because it encompasses vital tasks such as collections, payments, billing, and tracking. A company’s proficiency in nurturing and navigating the AR lifecycle can influence its success or failure. Unfortunately, many businesses remain unaware of the potential hidden within automated AR processes despite their familiarity and widespread usage.
In this guide, you’ll learn about the untapped world of AR automation. Knowing what can be automated and how to automate them will help you streamline your strategy and improve your company’s bottom line.
How Does The Traditional AR Process Work?
The traditional AR process is a manual endeavor that a business manager or accountant handles. This labor-intensive task involves creating invoices, collecting payments, communicating billing information, and tracking the AR cycle. Human error often looms over this process, leading to costly mistakes and delays.
Fortunately, the advent of technology has revolutionized the landscape. Through integrating computers, accounting software, spreadsheets, and emails, the AR process has experienced a leap in efficiency. This has led to increased accuracy, more automation, and a reduced need for manpower. The development of specialized AR software has also propelled automation to new heights. With this software, you can deliver unparalleled efficiency, mitigate the need for overhead costs or additional staffing, and minimize errors.
In the present day, installing an AR automation system may be a substantial investment. However, the returns far outweigh the initial expense. Invoice automation can pay for itself after about six months. This remarkable benefit is just the beginning.
Automating the AR process will also help you unlock greater efficiency and gain valuable insights into your financial operations. With enhanced accuracy and streamlined tracking, you’ll better understand your cash flow and make better decisions. Additionally, you’ll reduce your reliance on manual labor, and your team will become more productive because they’ll focus on more strategic tasks. The AR automation journey represents a transformative step toward financial success.
The Common Challenges You’re Likely To Experience With AR Processes
Before learning the transformative benefits of AR automation, you need to know the common challenges your business will likely face with the processes, including:
The Struggle To Have Invoice Emails Read And Acknowledged
Shockingly, Forbes reveals that about 60% of emails go unnoticed. The infamous “I didn’t see it” excuse is all too familiar, making it difficult to know the status of your communication.
With automated AR services, knowing whether your email has been read is easy. The “client view” feature will deliver the client’s response directly to the recipient’s web browser. This feature can be used for PDF downloads, online payments, file attachments, comments, and more. Integrating a customer portal into your system can also enhance accessibility and let clients quickly respond to invoices. The result? You’ll be informed at every click.
Failing To Be Firm When Requesting Payments
Another prevalent issue is the reluctance to assertively request payments, especially when deadlines pass or payments are continuously late. It’s estimated that about 80% of invoices in the US are overdue by 30 days, adding unnecessary stress and disrupting the budget strategy.
AR automation provides a remedy to this problem. Automating the invoicing process and follow-ups eliminate emotions from the equation. Also, customer portals empower clients with flexible payment options, reducing unintentional missed payments and discouraging intentional delays or excuses.
Payment Excuses
Handling payment excuses is a common headache businesses face during billing and collections. Atradius estimates that customers delay about 50% of payments due to misplaced invoices or inaccurate information. Fortunately, AR automation tools act as a defense against these excuses. Through automation, you’ll achieve accurate invoice delivery and keep track of successful receipts.
Addressing these common AR challenges through automation will liberate your business from cumbersome manual processes and pave the way for smoother financial operations. You’ll also achieve increased accuracy and gain the confidence you need to nurture stronger client relationships, secure timely payments, and steer your enterprise toward sustainable growth and prosperity.
What Does The AR Automation Process Entail?
There are several crucial aspects that you need to consider when switching to an automated process. Now that you know the challenges faced in the AR process, let’s look at some of the solutions that AR automation offers.
Generating Invoices
Complex invoice generation tools form the cornerstone of AR automation. They streamline the invoicing process and customer experience. Through external datasets and built-in templates, these tools will give you the correct billing information according to each customer’s preferences. This personalization will foster your relationship with your customers and expedite payment processing.
Tracking Payments
The laborious manual tracking of every payment can lead to errors. AR automation comes to the rescue by automating the cash application process, letting you effortlessly track and match each price to its corresponding invoice. An ideal AR automation service should provide tools like multi-invoice applications, virtual lockboxes, cash application rules, and remittance acceptance advice. Adopting these features will guarantee you effective and accurate payment processing. It will also free your team from tedious tasks and minimize mistakes.
Automated Collections
Bid farewell to the days of managing collections through sticky notes, spreadsheets, and endless emails. AR automation is designed with collections tools that perform real-time tracking and maintain progress visibility and transparency. Using these features means reducing your dependence on staff overhead and minimizing human mistakes. You’ll also reclaim valuable time and resources that you can use to build other aspects of your business.
Payment Plans
Payment plans are indispensable for companies offering high-value services like medical procedures or legal representation. AR automation should seamlessly incorporate payment plans within a cloud-based invoicing platform. Automating your goals will enhance your financial stability, foster consistency, and increase trust.
Customer Portal
Simplifying payment processes and account management is paramount to AR automation. A customer portal improves collection rates and consistency thanks to its ability to reduce customer service overhead.
Invest in a cloud-based, PCI-compliant customer portal that offers ample customization options that align with your overall customer experience strategy. A user-friendly customer portal will let your clients control their accounts and improve your overall experience.
Subscription Billing
For businesses with recurring revenue models like membership organizations, cloud software providers, or utility companies, automation extends its capabilities to manage billing and subscriptions seamlessly. An automated AR service should offer flexible plan development and management that handles everything from proration to add-ons and contract renewal rules. Features like sign-up pages, extensive customization, and dunning management can boost your subscription business, optimize billing efficiency, and increase subscriber satisfaction.
Simplify AR Processes With Automation
Having gained valuable insights into the significance of AR automation, it’s only natural to seek an automation service that meets your requirements. Fortunately, several companies provide a comprehensive suite of service tools accessible through a cloud-based platform.
by Sophia Riley | Oct 12, 2023 | Accounts Receivable, Digital Transformation
Are you spending endless hours on bookkeeping tasks? Struggling with fragile OCR technology or relying on human transcription can lead to headaches and errors. A Greenback survey estimates that users waste about five minutes to scan, search for or upload one receipt. Imagine a world where your accounting is streamlined, efficient and automated. This is what automated receipts will give you. If you invest in these receipts, you’ll have more time to spend on vital tasks like growing your business and spending quality moments with loved ones. And there’s more. Automated receipts get smarter with every use, learning your preferences and simplifying your financial processes. Here are some questions that will help you determine if investing in automated receipts is a good idea.
Does Your Bookkeeper Know What You Bought Last Month?
Probably not. If they’re using traditional receipt management, maybe they’ve not reconciled or categorized receipts for items you bought from eBay, Amazon and other e-commerce sites. Bank statements and credit card reports may offer some information on what is bought, but they may be limited.
Automated receipts eliminate the need to track receipts and enter data manually. They’re designed to offer a comprehensive view, with product images, shipping information, live links and line items. They can also effortlessly capture all relevant information, categorize expenses and update records quickly.
Automated receipts also keep data in one place. It doesn’t matter whether you’re on a business trip or vacation, you can search for any receipt, and it will show you how you’ve spent your resources. Additionally, it can match your transactions with original receipts and prevent duplicates. Through them, you can interpret large amounts of data and assess the areas you need to make adjustments easily.
Are You Prepared For Auditing?
Facing an audit can be anxiety-inducing for businesses and individuals alike. One wrong move could expose you to financial scrutiny. Fortunately, automated receipt systems have your back. Investing in these receipts will help you keep your records organized and easily accessible. You’ll not worry about frantic searches for missing receipts during an audit because they’ll be securely stored in the cloud, where you can access them anytime. You’ll also have confidence in addressing questions about your financial records with ease.
Moreover, automated receipts can boost your tax compliance. It’s advisable to store receipts for transactions for as long as you can. Unfortunately, many vendors only keep these documents for two years from the purchase date. The IRS publication 583 makes it clear that a tax deduction doesn’t depend only on the document showing the amount paid. You need other documents, such as invoices and receipts, to prove you made a payment. Automated receipts can make it easier to prove this, increasing your chances of compliance. Speaking with a tax attorney or an accountant can help you learn more about tax record keeping.
Do You Have A Team Helping You With Taxes And Books?
Collaborating with a team on manual receipt management can be a logistical nightmare. Miscommunication lost receipts, and delayed updates are some challenges you might encounter.
With automated receipts, your team can seamlessly collaborate, even if they’re spread across different locations. Everybody will have access to the same digital receipts repository, eliminating confusion. You’ll also be able to connect with your accountant or team more efficiently or securely. They’ll be no more worries about duplicate transactions or missing receipts because you won’t enter data manually.
Furthermore, hiring a bookkeeper to correct data entry errors or track lost receipts won’t be necessary. Automated receipts will streamline your workflow, create accurate results and sync with your accounting system with little effort. It will also help your team to instantly upload and share receipts, track expenses, coordinate financial decisions and allocate budgets.
Are Your Receipts Backed Up And Safe?
Data is among the most essential assets that your company owns. However, it’s estimated that companies lose about 12 billion dollars in the U.S. each year due to data loss. You can lose data as a result of a hard-drive malfunction, ransomware attack or a drink spill. If you’re using traditional receipt storage, receipts can fade, be misplaced, or be destroyed in unforeseen disasters.
Protecting your financial data is paramount, and that’s where automated receipt systems shine. These receipts are stored in the cloud and are future-proof, ensuring your data is secure. Investing in this system will minimize your worry about physical damage or data loss. Even if your office catches fire, your financial data will be untouched, ready to help you rebuild. You’ll easily access and use them to file an insurance claim, prove property loss, win a settlement and make important coverage decisions.
Are There Blind Spots In Your Bookkeeping?
In the world of manual receipt handling, blind spots are all too common. Human errors, overlooked receipts, and misinterpretations can lead to inaccuracies and incomplete financial records. But worry not; automated receipts leave no room for oversight. They ensure that every single receipt is captured, recorded, and accounted for.
For example, assuming you have a recurring expense for your business. Due to oversight, you miss it in your manual bookkeeping. This might lead to miscalculations or tax discrepancies. If you’re unlucky, you may even be fined.
With automated receipts, every transaction will be meticulously tracked, leaving no room for such blind spots. It’s easy for examiners to assess and observe internal controls if your company has a digital paper trail. Automated receipts can make this process easier since they reconcile statements with original receipts. This data will make it easier for an examiner to view the accuracy of your company’s internal controls and operations. It will also make it harder for your staff to make mistakes or hide expenses. The result? You won’t worry about being penalized for missing vital documents.
Automate Your Receipts To Be Ready For The Future
Investing in automated receipts is a game-changer for your financial management. It will empower you with improved bookkeeping, enhance audit preparedness, foster efficient team collaboration, ensure data security, and eliminate blind spots in your records.
Automated receipts will also save you time and effort and give you peace of mind that your data is safe, readily available and accurate. Work with a partner who’s experienced in accounting and understands your company’s needs. You can also learn about receipt automation from professionals. Take the leap into the world of automated receipts and watch your financial management soar to new heights. The benefits are clear, and the results are transformational.
