Information silos are one of the biggest thieves of efficiency at companies worldwide. Companies spread their data across multiple platforms that update at different rates. Ultimately, this data falls out of sync, and some departments never get access to invaluable information that could help them make better decisions. This is why so many companies now look to accounts receivable integration and other similar options to break down information barriers.
What Is ERP and Accounts Receivable Automation Integration?
Integrating enterprise resource planning and accounts receivable automation connects the two systems to streamline operations from end to end. Doing so can simplify time-consuming tasks like posting invoices, recording payments, reconciling balances, and managing disputed invoices. The integration also enables two-way data synchronization to ensure exactly the same information is available on both systems.
What Are Some Critical Best Practices To Ensure the Successful Integration of A/R Automation and ERP Systems?
Integration can sometimes be a complex process. By following these best practices, businesses can ensure their ERP and accounts receivable automation integration process runs as smoothly and efficiently as possible.
Start by Defining Your Objectives
Before integrating your automated ERP system and A/R platform, define clear objectives for the process. Ask yourself what business problems you want to solve or what functions you want to automate. This will give you a better idea of which features need integration so that the automation process works most efficiently.
Secure Buy-In at All Levels of the Company
When integrating your ERP and accounts receivable systems, ensure all stakeholders are on-board with the process. Make sure everyone is informed of the benefits and potential pitfalls of integration so they can provide valuable input. You should also establish a timeline for completion and set expectations up-front to ensure buy-in
Create an Inventory of Existing Data Sources and Formats
Once you have identified your objectives, create an inventory of all the data sources and formats you will use for integration. This includes everything from customer databases to invoicing software or APIs. A clear understanding of the data sources and formats you need to work with will help ensure smoother integration.
Choose the Right Integration Platform for Your Needs
Once you have identified both your objectives and data sources, it’s time to choose the correct integration platform for your specific needs. Several options are available, so do your research to find the right one for your business.
Properly Document and Test all Integrations
Before you deploy any integration, it is essential to properly document and test it for accuracy and reliability. This includes testing how well the two systems communicate and how quickly data transfers from one system to the other. Proper testing will help you identify potential issues and resolve them before the integration process is complete.
Provide Adequate Training and Support
Integrating ERP and accounts receivable automation systems is a complex process. To ensure successful integration, you must provide adequate training and support for your teams. Take the time to help them understand how the two systems work together so they can get the most of them going forward.
Monitor Performance on an Ongoing Basis
Once your integration is in place, regularly monitor its performance. This includes tracking all data transfers, reviewing transaction logs, and checking for any discrepancies or errors that may arise. Doing so will help ensure the integration works as expected and that you can address errors quickly.
What Are the Benefits of ERP and Accounts Receivable Automation Integration?
Implementing best practices takes time and requires organizations to dedicate resources to successful completion. Securing buy-in at the highest levels requires making a strong point for the return on investment. Here are some integration and accounts receivable automation benefits to include in your pitch.
A/R and ERP automation reduces manual data entry errors and ensures data is entered accurately into both systems. This eliminates discrepancies between the two platforms and ensures that all information is up-to-date.
Integration makes it easy to develop effective dunning strategies and meet other communications goals. A good approach reduces unnecessary back-and-forth and ensures everyone is on the same page regarding customer information, invoices, and payment schedules.
Faster Resolution of Disputed Invoices
You can quickly identify and address invoicing discrepancies by integrating your ERP and accounts receivable automation systems. This helps to ensure that all outstanding payments get handled quickly and efficiently.
Faster Invoice Processing
Automation can help speed up the accounts receivable process, from invoice creation and approval to payment collection. This reduces disputes over invoices and allows businesses to get paid faster.
Integration of ERP and accounts receivable systems avoids data duplication and ensures all payments are properly tracked. This can help ensure compliance with regulations and minimizes the risk of fraud.
Improved Management and Tracking of Collections
Integrating ERP and accounts receivable systems gives businesses improved visibility over their collections. This makes it easier to track payments, identify customer issues, and manage disputes more effectively.
By integrating ERP and accounts receivable automation systems, businesses can reduce operational expenses associated with manual data entry and invoice processing. This helps to save time and money in the long run.
Reduced Labor Hours
By automating routine tasks, businesses can reduce the time their teams spend on manual data entry and invoice processing. This frees up labor hours which workers can use for more strategic tasks.
Comprehensive solutions make it easy to add relevant tags that can move problematic accounts up the chain of command. Imagine labeling client accounts with the same ease as someone might do in SalesForce.
Ability to Add Notes
Sometimes, labels alone are not enough. Notes enrich the experience. For example, integration can bring SalesForce notes into automated A/R software like Gaviti. This addition helps the A/R team secure assistance when necessary. It can alert other workers about the account so they can adjust accordingly, such as not extending more sales credit to a delinquent account.
Boosted Cash Flow
Automation helps businesses to increase their cash flow by sending out invoices quickly and efficiently. This also reduces customer payment friction, translating to faster and full invoice payments for businesses. In one Gaviti case study, a company achieved the following results:
- 77% reduction in receivables at risk
- 60% reduction in overdue invoices
- 30% improvement in days sales outstanding
Better Customer Service
Integrating ERP and accounts receivable automation systems enables businesses to better manage customer data. Automation also streamlines the accounts receivable process, from invoice creation to payment collection. This makes it easier for customers to access their invoices and make payments on time.
Why Choose Gaviti Over Other Accounts Receivable Automation Options?
Gaviti is a market leader in A/R automation and offers more than just the ability to use bots to simplify tasks. We take a more comprehensive approach to accounts receivables by providing tools that managers can use to leverage the power of process redesign and data analytics. Are you ready to see what Gaviti can do for your business? Book a demo to get started.