Running a business means keeping a lot of moving parts in order, especially when it comes to finances. Whether you’re a founder or a CEO, you’ve probably felt the pressure of balancing budgets, sending invoices, tracking payments, and making sure cash flow stays healthy. The good news? You don’t have to do it all manually anymore.
Thanks to accounting technology solutions, businesses of all sizes can now manage their finances more efficiently and accurately. These tools help in accounting automation tasks like billing, payroll, and reporting, saving time and money.
Let’s explore how modern accounting technologies are reshaping financial operations, what they do, why they matter, and how they can help your business thrive.
What Are Accounts Receivable?
Accounts receivable is the balance of money owed to companies for goods and services. Often, AR refers to goods and services initially provided on credit, with the expectation that debts will be repaid within a set period, usually weeks.
Why Is It Important to Track Accounts Receivable?
By staying on top of payments due, company leaders can rely on this expected cash inflow to sustain and grow their businesses. CEOs can plan and use outstanding receivables to improve cash flow, reduce debts, or reinvest in the business.
According to a U.S. Bank study, this is especially valuable for small businesses, given that 82% of them fail due to poor cash flow management and a weak understanding of how cash flow affects their business.
What Is Accounts Receivable Technology?
So, what is accounting technology, exactly? Accounts receivable technologies refer to the software and digital tools that enable companies to more efficiently track and collect money owed to them. AR technology enables companies to easily view outstanding bills, send and receive digital invoices, and seamlessly integrate AR data into general accounting systems.
By integrating processes for invoicing and billing to the cloud, companies can reduce redundancies, shift grueling workloads to artificial intelligence, and automate processes. This effort ultimately saves businesses time and money.
Why Is Accounting Technology Solutions Important?
Keeping track of your books manually is time-consuming, and mistakes can be expensive. Here’s why adopting accounting technologies is a smart move:
- Saves Time: Automate repetitive tasks like invoice generation, payment tracking, and reconciliations.
- Improves Accuracy: Reduce human errors that can slip into manual spreadsheets or handwritten ledgers.
- Gives Real-Time Insights: Stay up to date with how much money is coming in or going out at any given time.
- Boosts Compliance: Built-in features help ensure you’re following tax laws and reporting rules.
- Scales with You: As your business grows, these technologies can handle increased transaction volumes without overwhelming your team.
How Accounts Receivable Technologies Save Time and Money
Technology enables companies to streamline and automate accounting processes rather than relying on cumbersome paper billing and manual collection. By using accounts receivable technologies, CEOs can ensure that:
- Payments are coming in as expected and on time
- No receivables are falling through the cracks
- Money automatically deposits into company accounts
Once a company has adopted cloud-based AR tech, it’ll begin seeing benefits. Notably, they’ll save time and money, which allows business leaders to better utilize company resources and improve cash flow planning and management. Here are some specific ways AR technology helps companies thrive:
Streamlines Accounting Processes
After an initial set-up where a company can customize templates with their logos and other signage, customized invoice templates can be saved and recycled. Companies can then schedule one-time and recurring invoices, creating repeatable workflows.
Furthermore, companies can utilize a range of accounts receivable and general accounting technologies to consolidate all financial data in one location. Many AR platforms, such as Bill.com, automatically sync with general accounting technologies like QuickBooks. This keeps the entire business in cooperation and streamlines the flow of financial data.
Additionally, by linking with other accounting technologies, the general ledger automatically updates with the most up-to-date information about cash flow. Accounting technology solutions can pull in historical data to inform financial reporting, budgeting, and forecasting, empowering CEOs to decide where to spend company resources.
Frees CEOs to Focus on Accelerating Business Growth
Most financial professionals already know AR technology well
Many small businesses lack the budget to establish an entire finance and accounting department. Fortunately, Fractional Accountants can be hired on an as-needed basis for a variety of accounting tasks.
By working with a trusted outsourcing company, such as The A Team, CEOs can access professionals with experience using a variety of accounting technologies. They can provide initial migrations and ongoing management services.
How Do Accounting Technology Solutions Work?
Most accounting technologies work through the cloud, which means you can access your financial data from anywhere with an internet connection. No more saving files on your desktop or emailing spreadsheets back and forth.
Here’s how they help:
- Cloud-based platforms: Allow your team (and your accountant) to log in from different locations, update records in real-time, and collaborate more easily.
- Automated processes: Instead of doing things manually, you can schedule recurring invoices, set up payment reminders, and let the software do the heavy lifting.
- AI-powered insights: More advanced tools use artificial intelligence to forecast trends, flag unusual transactions, or suggest budget improvements.
- Integration with other tools: Your accounting tech can often connect to your payroll system, CRM, inventory tracker, or point-of-sale software, creating one seamless ecosystem.
Accounting Technology Solutions
Innovation and today’s rapidly paced world are pushing organizations to move faster than ever before. Many established businesses, start-ups, and nonprofits are feeling the strain, but there are still only 24 hours in a day. Luckily, we recommend several accounting technology solutions to help make your business more efficient and organized.
Want to Reclaim Valuable Time? Invest in the Right Solutions!
Choosing the appropriate accounting platform depends on a variety of factors:
- Do you have inventory to track?
- Which tasks waste the most time?
- Do you have sufficient clarity into your company’s financial situation?
Excessive time may be dedicated to pursuing overdue invoices, leading to inefficiency and wasted time on fixing errors due to long hours. Additionally, there could be ongoing charges for unused software subscriptions on a company card. Don’t let these things fall by the wayside and cost your company valuable hard-earned revenue.
How Financial Technology Can Transform Your Business
What Is Financial Technology?
Financial technology, often referred to as “Fintech,” is a technology that digitizes, streamlines, or automates financial processes in business. These technologies come in either software or software as a service (SaaS) form. The programs can digitize or automate a number of financial tasks every business must handle, such as:
- Tracking income and expenses
- Sending invoices or payments
- Collecting data for analysis or reporting
- Creating in-depth expense reports
- Budgeting and forecasting
Accounting technologies are a huge part of the financial technology field, and perhaps the most utilized and valuable type of Fintech. According to some studies, 83 percent of accountants agree that accounting technology increases productivity.
When Does a Business Need to Use Financial Technology?
Even though not every business starts with financial technology, in the modern landscape, inception is the best place to begin. The more organized a business’s finances are from the beginning, when growth is often at its largest, the more likely it is to succeed. The best technologies make tracking finances more efficient.
Nevertheless, if the business doesn’t start with good technology in place, a few pertinent events should spur the adoption of financial programs, such as:
- The business is going through a rapid period of growth
- The current accountant or accounting department’s daily tasks are overwhelming
- The business sees a major uptick in the number of expenses or invoices.
Is Financial Technology Necessary Even With an Accountant?
Financial technology serves a valuable purpose.
Accountants handle bookkeeping, ledger balances, and drafting financial documents, among many other tasks. Financial technology complements the work they do. With the right technology in place, accountants spend less time on mundane tasks and reporting. Therefore, has more time to focus on other finance-related tasks that require human input or attention.
Likewise, financial technologies benefit the entire financial sector of the business, all the way to the Chief Financial Officer (CFO). For example, expense tracking software provides the Fractional CFO with valuable data that can aid in strategic future planning.
Modernize Your Business with the Best Financial Technology
The right financial technology revolutionizes the efficiency of financial management within a business. The A Team’s Technology division helps you find the right financial technology for your business. Let’s discuss how the right programs will free up your time to focus on the core business.
Financial Technology for the New Normal
While no one would deny the importance of robust and reliable financial technology, the COVID-19 pandemic has highlighted the need for strong technology capabilities at every level. Suddenly, while working completely remote, businesses must stay connected, operate efficiently, and manage financial health. The pandemic forced many businesses into uncharted waters.
With experience and expertise in the latest and most advanced electronic systems, The A Team is well-equipped to assist your business with effective financial technology during these challenging times. We’ve examined, vetted, and deployed a variety of technology offerings that can be fine-tuned to suit your company’s individual needs.
*A Team Will be Your Go-To for Financial Technology*
Many small businesses still pay vendor bills manually, entering them into their accounting software for payment by checks, ACH transactions, or credit cards. This process requires approval protocols by a manager or owner before the bookkeeper issues payment. When staff are not centrally located, and multiple parties must access vendor bills and checks to use for payments, the process becomes cumbersome and inefficient.
Accounting Technology Solutions Can Help:
A real-life example:
A mid-sized private educational institution was using QuickBooks as its accounting software solution. However, QuickBooks did not provide critical reports needed to support payroll processing and automated revenue recognition. Every week, they wasted valuable time creating manual reports. Keith Miscione, The A Team’s Technology Practice Director, developed a single custom report that calculated accrued commissions earned by employees based on multiple key factors, including course registration and completion.
By implementing appropriate accounting technology, the client was able to increase efficiency and save money by decreasing staff size, paying employee commission more rapidly, and making better, more timely management decisions.
AccountingIQ Can Solve Many Issues Without Breaking the Bank
That’s why The A Team Consulting offers numerous, reliable accounting technology solutions to enhance efficiency and give you back valuable time.
From accounts payable platforms that create a seamless workflow to digital expense tracking, The A Team’s AccountingIQ has the right off-the-shelf or in-house, custom-built technology solution to streamline your accounting processes. Reducing costly manual errors and unnecessary employee time will enable a focus on core job responsibilities.
Contact us today for a free consultation!