The business world is rapidly digitizing and creating new opportunities for businesses around the world. The new capabilities enable businesses to be agile, customer oriented, well-connected, innovative, and efficient. Digitization is a journey that strives towards continuous improvement and optimization of business processes. However, digitization is not an easy task and often requires the assistance of professional document scanning services to take care of bulk document scanning requirements. The existing physical paper documents are scanned to be converted into PDF, XML, HTML and other formats for further publishing or sharing.
Digitization is especially important for businesses that need to maintain many years’ worth of paper documents, and even require to rent storage units to keep the physical copies. How can businesses go about digitizing their processes? Consider the following tips.
- Use software programs such as Google Docs that eliminate the need to print documents in-house and generate paper files. You can share files with others and work simultaneously with your co-workers on a document or spreadsheet. It auto-saves the document and allows you to download whenever you need to.
- Introduce paperless statement and bill paying. When you increase online bill paying, there will be lesser number of envelopes, paper invoices, checks and mailings. The payments are much easier to track and prompt when done online. You can choose reliable software that accepts payments via smartphones and generates paperless receipts.
- Encourage digital payments. Have a mechanism to accept multiple payment forms and give your consumers the freedom to choose the mode of payment. Do not restrict transactions to cash.
- Choose cloud-based storage. This is a great option to reduce paper usage. Consider investing in software that has cloud-based storage, reporting and analytics.
- Implement electronic book keeping. There are many intelligent software programs now that can manage your inventory very efficiently. Accounting is made easier since your invoices and payment receipts are generated from the same system.
Businesses need to embrace digitization also to ensure efficiency as well as customer satisfaction. At present, technology is more flexible than ever before to digitize business cash cycle processes. For instance, new technology such as AR (accounts receivable) automation will have an impact on the way businesses want to be invoiced or how they want to pay. If you are wondering why AR automation is indispensable, here are some solid reasons.
- It will help to reduce your days’ sales outstanding (DSO). Since this is a top priority in any company, you can achieve this by refocusing your team’s efforts on high value work with an AR automation tool. With this, manual processes can be eliminated. Following up and maintaining relationships with customers can be more efficiently done. AR automation tool allows analytics that provides visibility into your actual account balances. You can reduce your DSO also because it allows allocation of cash faster thus reducing cycle time.
- Reduce time involved in handling paper invoices: It is estimated that a large majority of organizations submit paper invoices mostly via email or fax. This is associated with considerable paper handling. The labor cost involved in this can be reduced by automation. If you use an online portal that can pull invoices from your financial management system, it will help eliminate manual handling of invoices, speed up delivery, and improve customer satisfaction.
- Avoid late payments: Often, you may have to resend invoices to customers who did not receive the same. Any chance of late payments as a result of such occurrences can be avoided if you a customer portal provided by an AR automation platform.
A recent Research and Market report “Digitizing the Business Cash Cycle: Advancements and Partnerships,” highlights the latest technology solutions supporting the procure-to-pay space and methods for connecting the various tools that are continually being added. For optimal performance in managing working capital, it is important to digitize procurement, invoicing, payments and alternative financing. The report clarifies why this is a vital need as organizations advance to an era of a high-tech, global economy.
Almost all businesses around the globe are in the process of digital transformation. Many banks and technology vendors are helping enterprises to digitize by providing the latest advanced technologies. The process of digitizing is gradual. But with competitive pressures in the interconnected world, the growth environment expected and inevitable rising rates, working capital effectiveness will become the main focus and speed up the adoption of business cash cycle technology, from procurement through financial reconciliation. The report throws light on:
- Factors that drive the increasing visibility and adoption of digital processes
- Technology domains that are being digitally connected across the business cash cycle
- How digitization transformation occurs
- Reasons why working capital efficiency is most important in a potentially higher-growth era with changing fiscal and monetary policies
- The vendor landscape with its often evolving service providers.
In any business organization, vendors providing various back office outsourcing including document scanning services solutions are a great support. Outsourced solutions also include AR management among other processes. Organizations can utilize such services and benefit from the partnership, improving productivity and bottom line.