PayTraq Blog

Advantages of Comprehensive Business Processes Automation

Posted in business, accounting, cloud, invoicing, automation

As technology and web apps become more advanced, business process automation, previously used only by large enterprises, is now available for small businesses as well. Unfortunately, a lot of people are unaware of many of the advantages of a complex approach to business process automation and never get a chance to benefit from them.

Automated billing is among users’ favorites. Undoubtedly, replacing Word or Excel with web-based services is a better and smarter solution which saves a lot of time. Professional design of generated documents, organized lists of issued bills with instant search option, clear information of who owes what, periodic billing, automatic invoice e-mailing, notifications about past due payments, as well as the possibilities for receiving online payments are what automated billing is all about, and that's why it increases performance compared to manual billing in text editors or spreadsheets. But this is just one business process.

By automating only your billing, you keep track only of your revenues. Without knowing your expenses, you cannot be aware of your operating results. Without knowing your operating income, you cannot calculate your business’s profitability.

To have a clear understanding of the financial health of your business, other processes need to be automated as well. Thus, your purchases can be automated just like the sales are. If your company is engaged in sale of goods, inventory accounting probably needs automation too. Keeping records of all your purchases and tracking inventory gives a clear picture of stock and inventory value. Actual inventory value allows to determine profitability which, in turn, allows effectively manage your pricing. No one wants to sell products at a loss, do they?

Inventory tracking makes it possible to plan supplies while preventing product deficit or surplus, which has a positive effect on the cash flow.

When you record all administrative and operating expenses, including payroll expenses, you may see your company’s actual profit or loss. On top of that, you always have an up-to-date financial statement at hand.

Recording all your incoming and outgoing bills allows you always be on top of your payments, both incoming and outgoing. With automated uploading and processing of bank statements, your payments for issued and received bills are reconciled automatically. As a result, you will be always aware of a current balance of your bank accounts, and your accounts receivable and accounts payable positions are continuously updated. Thus, you always know how much money you have at any given time, how much you owe, and how much is owed to you. Keeping track of the due dates for all incoming bills, you can plan when and whom to pay and therefore always pay on time, avoid late fees and keep good business relationships with suppliers.

Full accounting automation will give you a real-time picture of your assets and liabilities, and ability to access current financial statements any time. It will enable you to analyze historical revenues and expenses data, do planning and budgeting, and make informed and timely decisions. The fact that you and your accountant work in the same environment prevents duplicate entries, unnecessary documentation exchange, and saves money.

The choice is yours. Remember that online accounting is designed not only for accountants. Don’t turn away from accounting by thinking of it as a detached part of your business needed only for auditors and filing your tax returns. By integrating accounting into your business processes, you will greatly improve your business efficiency, get the tools to analyze your company’s key financial indicators, and benefit from your always up-to-date financial reports accessible any time.

PayTraq is a comprehensive solution for business process automation.