ERP Decision Series: Currency Management

ERP Decision Series: Currency Management

So many decisions go into the process of selecting ERP software for your business. A high-risk, high reward proposition, companies that make the right decision position themselves for comfortable growth, ease of life, and smarter decisions. However, a poorly planned or executed implementation project is also very likely to fail—in fact, up to 75% of all implementations do.

The bigger and more diverse your business gets, the more complicated this becomes, and for those with international subsidiaries, vendors, or customers, today’s topic is especially important.

As we’ve said in previous blogs on this topic, we aren’t trying to scare you away from making an upgrade—we wouldn’t be in business if that was our intent. Our goal is to help you understand your path to purchase, learn the features and how they can help you, and give you tips for a successful transition from your current system to a solution that positions your business for the future.

After our last article on laying the groundwork for an ERP implementation and deep dives into cash management, accounts receivable, accounts payable, and business intelligence, we would today like to discuss another core component of financial management.

Financial Management: A Continued Deep Dive

As we continue our series on the financial management features and functionality you should consider in your ERP solution, we would today like to explore two necessary components of this software designed to handle two of the complex processes that businesses must face in their ongoing operations—currency management.

The process of managing different currencies is often a challenge. From exchange rates to prepayments, vendor payments to value-added tax, businesses need an accurate and auditable picture of their financial standing to understand where they are and what they will need to do.

Currency Management: Minimizing Growth Risk

Whether you are looking to expand internationally or are already well established around the world, one of the biggest challenges and risks faced by growing businesses is that of financial risk. From inflation to instability, trying to calculate exchange rates why working with international subsidiaries, suppliers, and customers becomes harder as the volume of transactions increases.

What is Currency Management in ERP?

Currency management is a tool within financial management that simplifies the process of calculating realized and unrealized gains and losses, performing account reevaluations, and translating financial statements.

Currency management isn’t just about automating calculations as you work in different currencies around the world. It’s also about minimizing your growing midmarket company’s financial risk when currency values change dramatically.

Why Is It So Important?

Currency values change, and exchange rates fluctuate by the day, creating financial risk for companies operating across borders. While hyperinflation is rare, the sheer scale of your business means that a small percentage change in currency could result in tens of thousands of dollars. With this in mind, it pays to know where you stand and make calculations so that you know where your business stands.

What Should You Look for in Currency Management?

Currency management is a unique feature in ERP because it evaluates your business’ standing no matter where you are. Among the key things you should look for in this functionality:

  • Unlimited Currency and Rate Types: Take control of the exchange rate by assigning different rate types to customers and vendors using the same foreign currency. Solutions should at least provide options for the locations in which you operate, but ideally will provide an unlimited number.
  • Control of Decimals and Rounding: With different rates of variability in currency, being able to adjust the number of decimal places you count and handle rounding differences matters. Drill down into reports to monitor fluctuations.
  • Automatic Calculation of Realized Gains and Losses: Automatically calculate realized gains and losses from foreign currency transactions entered into any financial module, whether they are from customers, to vendors, or between accounts.
  • Plan to Adjust Unrealized Gains and Losses: Automatically prepare auto-reversing entries in General Ledger for all open documents recorded in foreign currencies.
  • Simplify Financial Statement Translation: Manage subsidiaries in a wide range of currencies or prepare financial statements in the currencies you need, while automatically calculating gains and losses thanks to tight integration with General Ledger.

Acumatica Currency Management helps you increase your volume of international business while staying in control of your finances. Advanced features let you support all your international subsidiaries, vendors, and customers. Learn more about why this is so important for growing businesses here and read the Currency Management data sheet for more information.

Acumatica Cloud ERP: The Usability Leader

Finding a solution that is user-friendly and functional is a key decision process in the ERP evaluation stage. As we continue to break down the smaller components of ERP and why they matter in the bigger picture, we invite you to learn more about your path to purchase by getting a free ERP evaluation and comparison checklist from Acumatica here.

Acumatica delivers a full suite of integrated business management applications unlike any other ERP solution on the market today. Offering a wide range of products for unique industry needs, Acumatica ERP features a strong cash management application for businesses who need a flexible, adaptable, and robust ERP solution that will grow with them.

Acumatica Accounts Payable is part of the Acumatica Financial Module and integrates with other necessary functionality based on your industry and unique needs. Learn more about Acumatica Financial Management, your path to making an ERP decision, and contact us to learn how we can help you.

Before You Decide on ERP: Getting Your House in Order

Before You Decide on ERP: Getting Your House in Order

Making an ERP decision isn’t easy. In fact, the path from realization to committal is often as stressful as the implementation process itself. From knowing when it’s time to make a move to evaluating functionality, reading reviews, and selecting your ideal solution, the steps you take before you move to complete a project could make or break the implementation.

At Integrated Business Group, our goal is to help you make an informed and confident decision in your next steps so that you can reduce risk and capitalize on the benefits promised. Today, we would like to explore some of the preliminary steps you should take that can keep people on board and on task.

Preliminaries Can Make or Break a Project

Return on investment. Integration. Automation. Functionality. All of these are important considerations when identifying your needs, developing your shortlist, and ultimately making your selection. However, before you can even begin to complete a ROI analysis, compare features, or finalize decisions, it’s necessary to get your house in order.

A recent guide from explored the five key steps to completing an ERP implementation—from knowing it’s time to making the move; over the next few months, we will discuss some of the basics and best practices for making a successful move alongside our blogs on selecting software for functionality, integration, usability, and more.

Understanding Why You Need a New System

In a recent blog, we discussed some of the main signs that an ERP system fails to meet your needs, and this point bears repeating. If you hope to complete a successful implementation, you need to be deliberate; the only thing worse for a company than going into an ERP implementation without a plan is going into one without a purpose.

Luckily, most organizations have good reasons to make the move. Either they’ve outgrown, overextended, or outlived the useful life of their current system, resulting in one or more of the following realizations:

  • Your current system is not supporting your business’ needs either now or in the near future (it doesn’t do what you need it to do).
  • Your current system is cumbersome; users complain that it takes longer to do their jobs with the system than it would without. Another indication is a proliferation of spreadsheets and manual work-arounds.
  • You are unable to respond to customer requests because of system limitations.
  • Competitors outperform your company because they have better, faster, or more flexible systems.
  • Reporting is weak, unreliable, or cumbersome; you’re having trouble seeing the big picture.
  • Your aging system is unreliable, unsecure, or costs too much to maintain.

Knowing that challenges exist in your current platform gives you the ability to not only rationalize your decision, it allows you to take leadership of a project and convince the team your company is making a change worth making.

Establishing a Team

From finance to sales and marketing, IT to operations, an ERP decision affects everyone in the organization. Knowing this, an ERP decision should leverage the expertise of members who have a stake in the decision: Users must be involved right from the start and should lead the effort in selecting the system and planning/carrying out the implementation.

A feeling of ownership can establish trust between end users and decision makers, no one wants to feel like they are being dragged along for the ride. From here, the right ERP project team includes the following members, among others:

  • Part Time Executive Sponsor: The individual in charge of developing a vision for the project and motivating people throughout the process. This person acts more as a cheerleader than a manager, but plays a vital role in keeping people motivated.
  • Project Leader: One of the most vital members of an implementation project, the project leader should understand the way your business operates, know how to keep people on task, and coordinate discussions between people throughout the business.
  • Department Representatives: The overall project can be broken down into clearly identified tasks and responsibilities that can be arranged on a time line (Gant or PERT chart) with names assigned to each task – your team members. These are the people who know each department and who can act as both a representative and leader.

Planning and Budgeting a Project

Project management is a well-understood process with many resources – books, classes, software tools – to support it. It is very important to use these tools to establish a detailed plan, budget and schedule to direct the management of the project through to completion. The plan should be reviewed and updated at least weekly. Any deviations or concerns must be addressed and resolved quickly so that they do not have an undue impact on other tasks or the eventual success of the project.

Communicating a Project: Keeping Morale High

Before you make the decision, you need to ensure people are on board and willing. No one can fear losing their job, the process has to be clearly detailed and explained to team members, and information needs to flow through your organization as the project heads towards its start date. All areas of the business will be affected by the new system and you don’t want to surprise them with a fait accompli. Get their cooperation and interest by keeping them informed and involved.

Developing a Broad Outline

Before deciding on your long list or even documenting your needs, you need to look at the big picture, asking why you intend to make the move and outlining the general shape and form of your ERP selection and implementation project.

Start by stating your overarching goals, objectives, and hopes so that you can establish a clear path forward and develop a communications plan. With this plan, you can begin to explain how a project will affect both the business as a whole as well as end users, not just in terms of monetary return but in efficiency and effectiveness. Consider this your strategy document—something that holds a decision together and presents skeptical users with a picture of what’s to come.

Forging Ahead: Your Journey to Improved Business with ERP

At Integrated Business Group, we have been in the business of ERP for decades, and know that with many moving parts, the path to selecting an ERP solution for your business could result in everything from analysis paralysis to fear of failure. Over the next few months, we will continue to explore the path to selecting an ERP and VAR to get you there, as well as things such as training, conversion, and the official go-live. Get to know more about your path by downloading the five-step guide to selecting an ERP software, learning more about the products we sell, and contacting us for more information.

Acumatica Vetted Reviews: Asking the Right Questions

Acumatica Vetted Reviews: Asking the Right Questions

G2 Crowd, a leader in the world of reviews maintains a running total of user experience and functionality reviews from real, vetted, verified users who have had hands-on experience with the software. While much of the hype is focused on market size and satisfaction, a less celebrated but possibly more important question that the report asks is “does the software work?”

While many platforms will tout high levels of user satisfaction, many of those platforms with the highest levels of customer satisfaction are also the ones that companies “outgrow” on their way to larger scale, fully functional accounting and financial management functionality. Today, we would like to look at the other side of these reports, the feature comparison.

Feature Comparison: Who Stacks Up to the Competition in the Latest G2 Crowd Grid®?

In the latest G2 Crowd Grid® for accounting software, the website analyzed a wide range of available options to present an honest look at customer experiences, comparing 21 vendors for their ability to deliver and provide innovative accounting software. As defined by G2 Crowd, accounting software helps businesses streamline and automate finance management processes.

Accounting software products, often considered part of a larger ERP suite (i.e. the financial management module in Acumatica), vary in complexity and the features offered; many products are optimized for use by companies of a certain size, such as enterprise-level businesses or SMBs (small to medium sized businesses).

In addition to the general overview of Satisfaction and Market Presence (see methodology here), the report allows users to provide granular detail on their experience with the unique functionality across the core finance features that exist. As we’ve been discussing the key functionality that exists in financial management software (Accounts Payable, Cash Management, Accounts Receivable with more to come), we would like to look at how Acumatica stacks up in the G2 Crowd Grid® Report.

How Acumatica Stacks Up: A Look at Various Features

The G2 Crowd Grid® for Accounting software digs into many different functions: General Ledger, Accounts Receivable, Accounts Payable, Inventory, Reporting and Analytics, Integration, and Platform, as well as an ROI analysis.

General Ledger

The center of any financial management application, an effective general ledger needs to track all financial transactions and is used to generate the company’s financial statements, including the Income Statement and Balance Sheet. G2 Crowd evaluates general ledger by a software’s ability to handle journal entries, easily tag transactions, and provide a measurable audit trail. So how did Acumatica do? Well above average, according to customers.

  • Second highest satisfaction for Journal Entries with 90%.
  • 86% of customers were content with the ability to tag transactions and add dimensions.
  • 87% believed that the ability to create an audit trail was ahead of its class.

Accounts Receivable

Doing Accounts Receivable right appears to be a challenge for many vendors. With some of the lowest average ratings among all features in the software, Acumatica stood out as a true leader in this respect. G2 Crowd respondents lauded Acumatica for its invoice capabilities (91%, tied for number one), AR automation (88%, tied for number one), and collections automation (86%, second overall).

Accounts Payable

We’ve discussed the importance of Accounts Payable functionality and its roles in capturing discounts, improving relationships, and saving time. With such high priority on this functionality placed among buyers, Acumatica once again stands out—well above average in all respects. From their AP automation capabilities receiving an above average 84% satisfaction to their top three positioning for Payment Processing and Purchase Orders at 87% and 88% satisfaction respectively, Acumatica provides high levels of customer satisfaction.

Inventory Management

Knowing when to order, what to order, and what you have on hand to satisfy customers is critical to any business. Inventory management isn’t easy, and the right solution is often hard to find. Luckily, Acumatica was built for distributors, manufacturers, ecommerce brands and other product-focused companies—dominating this field.

Acumatica was the clear satisfaction leader for all inventory functions in the report, receiving 90%, 93%, and 88% satisfaction for Inventory tracking/ordering, pricing/costing, and reporting respectively.

Additional Functionality: Reporting, Integration, and More

The report looks at many more features that accounting and financial management software should be able to provide, with Acumatica receiving high praise or top ratings for a variety of functionality:

  • Tied for number one in multi-entity/consolidation.
  • Leads customer ratings for its time and expense functionality—by a wide margin.
  • Received well-above average reviews for financial statement reporting and custom reporting.
  • Ranked highly across all facets of the “Platform” category, with notable leadership in ‘performance and reliability’ and ‘output document generation’ at 90% and 91% satisfaction, respectively.
  • Celebrated for integration capabilities, receiving praise for data import and export tools (87%), integration APIs (88%), and its innovative network of partners who received an 88% satisfaction rating.

Acumatica: A High Performer in the G2 Crowd Accounting Grid® for Fall 2018

Acumatica has been named a High Performer based on receiving a high customer Satisfaction score and having a small Market Presence. 87% of users rated it 4 or 5 stars, 93% of users believe it is headed in the right direction, and users said they would be likely to recommend Acumatica at a rate of 86%. Acumatica is also a leader in the ERP Systems and high performer in Project-Based ERP categories.

We invite you to learn more about the company’s success in delivering financial management functionality for customers, read the entire report here, get to know more about the importance of integration from our last blog, and contact us to learn more.

Integrated ERP: Creating a Shared Service Center and Improving Cash Flow

Integrated ERP: Creating a Shared Service Center and Improving Cash Flow

“The ability to manage the flow of money is one of the oldest and most fundamental requirements for any business.” These words, used by leading analyst firm IDC to introduce the challenges that businesses face and the potential that ERP has for organizations, lead into an in-depth report on the path to digital transformation at growing businesses.

IDC MarketScape: Worldwide Cloud and SaaS ERP Accounts Receivables and Accounts Payables Applications 2018–2019 Vendor Assessment is the most recent report from IDC, exploring the value of accounts payable and receivable functionality in ERP software and comparing eleven vendors for their ability to provide what end users need.

Identifying trends and comparing vendors, the report highlights the importance of embracing change, leveraging technology, and improving processes, discussing the role of ERP in digital transformation. Today, we would like to explore how the business landscape is changing and the path to transformation through smarter ERP.

The Path to Digital Transformation

Digital transformation (DX) is fundamentally changing financial applications, allowing businesses to transform their decision making, which is enhancing their business outcomes significantly in the digital economy.

More than a technological change, more than a cultural change, the road to digital transformation is one that can position businesses for growth in the new economy. According to IDC, businesses who have embraced this mindset have a repeatable set of practices and disciplines used to leverage new business, 3rd Platform technology, and operating models to disrupt businesses, customers, and markets in pursuit of business performance and growth.

Digital Transformation Starts in the Cloud

While there are many drivers behind digital transformation, much of this process starts when businesses leverage cloud computing to replace antiquated legacy systems. Offering agile, flexible, and functional applications, cloud business management tools are easy to implement, configure, and update—and demand continues to rise.

This has created a landscape of innovation across vendors, and businesses now have many options that can fit unique needs. Better yet, with easy updates, businesses now can find themselves in new markets, knowing the software is adaptable enough to handle dynamic and ever-changing regulatory, taxation, and reporting environments.

Creating Alignment in AP/AR

As we discussed in our ERP functionality series posts on Accounts Payable, Cash Management, and Accounts Receivable, integration and automation is a necessity for each module. IDC notes that technology has allowed businesses to reshape and realign the accounts receivable (AR) and accounts payable (AP) functions and shared service center business processes.

This area, an exceedingly traditional process in the accounting world, has seen a lot of change due to the technological advancements, which have promised ways to break down silos, integrate systems, and reduce manual processes.

ERP Bringing the AP/AR Process Forward

With modern ERP functionality continuing to change the way organizations operate, AR and AP workflows are quickly changing as part of digital transformation initiatives. Powered by ERP, these processes have moved from serialized processes to holistic workflows that provide continuous and highly visible audit processes.

This is the reason IDC released the report—to provide potential software customers with a list of ERP companies that have taken great strides in AR and AP functional areas. We have profiled and assessed their capabilities to support the complicated areas of accounts receivable and accounts payable.

Acumatica Named Major Player in IDC AP/AR Applications Vendor Assessment

In the report, IDC analyzes 11 ERP vendors for their ability to design and deliver effective AR and AP functionality within their ecosystem, finding Acumatica to be a Major Player on the cusp of being a leader.

Noting the company’s innovation, IDC discussed Acumatica’s continued investment in machine learning, natural language processing, and mobile technology, features that allow customers more access and flexibility in AP/AR. Further, with Acumatica’s unique industry focuses, IDC lauded the company’s industry editions, each growing in size and scope.

Get the Report Now

In “IDC MarketScape: Worldwide Cloud and SaaS ERP Accounts Receivables and Accounts Payables Applications 2018–2019 Vendor Assessment,” you’ll learn:

  • How digital transformation is driving change for ERP accounting
  • Three key accounting challenges that cloud technology is helping to solve.
  • IDC’s exclusive advice for technology buyers.
  • The strengths and weaknesses of 11 potential vendors.
  • 17 tough questions to ask yourself before making any purchase decision.

Download the entire report free, courtesy of our friends at Acumatica.

IBG: Your Partner for Innovation

At Integrated Business Group, our clients turn to us for our experience and innovation in delivering feature rich and functional Acumatica Cloud ERP, as well as leading Microsoft Dynamics options for growing businesses. With over three decades of experience in the ERP implementation industry, our team has the skills and knowledge to deliver what you need when you need it.

Learn more about our work, our satisfied customers, and contact us for more information about your next steps.

ERP Decision Series: Improving Supplier Relationships with AP Functionality

ERP Decision Series: Improving Supplier Relationships with AP Functionality

ERP is often considered the heart of your technology stack—data flows in and out of the platform and supplies the rest of the business with viable, decision-influencing information. As with a heart transplant, an ERP replacement is complicated; in fact, ERP replacements have a much higher risk of failure.

Now, this isn’t an article designed to scare you away from making an ERP decision—we wouldn’t be in business if we were doing that. However, there are many reasons that ERP implementations do fail, and our goal is to help you take steps to reduce risk and inform yourself so that your can see the warning signs before they come to bite you.

Financial Management: The Core of an ERP

Knowing this, there are many factors that go into making an ERP decision, one of which is to complete an analysis into the functionality to see how it benefits your business. Whether this is your first project or you’ve made this decision numerous times, you likely know that the financial management module is one of the most thoroughly used and leveraged parts of ERP software.

As we continue through our deep dive into the financial management functionality you should expect from an ERP platform, building on our previous two blogs on cash management and accounts receivable, we would today like to turn our attention to a key factor in your relationships—accounts payable.

Accounts Payable: Top Features and Benefits of Powerful AP

Just as you expect your customers to pay you in a timely manner, your suppliers expect the same from you. Timely payments are a top priority of your suppliers; speed and accuracy of payment is a top concern for you.

Whether you are looking to capture discounts or reduce the risk of paying duplicate or fraudulent invoices, powerful AP functionality can give you the power to break down silos, minimize paper, and take control of cash flow.

What is AP Functionality in ERP?

Receiving and paying an invoice seems simple, but as you know, it’s rarely as easy as it looks. From approval workflows to exception handling, the entire process is rarely straightforward and often leads to delays or inaccuracies. Unfortunately, delayed payments and duplications lead to higher costs and increased risk. The right AP functionality can prevent these delays and inaccuracies, working with cash management, general ledger, and other modules to deliver visibility and control.

Among other functionality, accounts payable functionality can give you the power to manage vendor invoices, automate payment processing, predict cash requirements, track vendor balances, optimize available discounts, and deliver vendor reports.

Why Is It So Important?

Your supplier relationships hinge on your ability to pay them in a timely manner. Accounts payable functionality in ERP is necessary for this, as it lets you do so affordably, streamlining the approval process and minimizing the amount of errors that you encounter. As the speed of businesses increases, the imperative for fast payments will become more pressing and the value of a powerful and integrated AP module will continue to increase, according to the most recent IDC report on leading ERP vendors’ ability to provide such functionality, a report we will explore in depth in an upcoming blog.

What to Look for in Accounts Payable Software

Powerful ERP should offer powerful AP functionality, allowing information to flow efficiently, while intelligently managing expenses and increase visibility into spending. Among the key things you should look for:

  • Prepayment Control and Functionality: If you have trusted vendors, you should be able to pay them quickly. With vendor prepayment functionality, you can keep prepayment balance separate from regular AP and enter prepayment requests, issue prepayments, and apply prepayments to invoices as they are received.
  • Automation: Set up processes to automatically approve for payment or follow an approval process to prioritize or delay payment before these documents are. Designate an account to pay from or select a payment method.
  • Tax and VAT Simplification: Automatically calculate Use and VAT taxes and prepare tax filing reports. Assign a default tax zone to each vendor. This default can be overridden during invoice entry. Tax calculation can include multiple tax items per document line, deduction of tax amount from the price, and tax on tax calculation. Acumatica also supports withholding tax calculations.
  • International Payments: Maintain vendor balances in both a base currency as well as the vendor currency. Currency translations are performed automatically
  • Intelligence: Leverage predictive entry and flexible screen layouts to speed up data entry. Combine this with automation and multiple pay-from accounts to reduce errors.
  • Document Management: Streamline invoice approval and make it easier to resolve issues in the future. When you receive source documents via email or scanning, they’re attached to the invoice for easy drill-down access.

Learn more about the many benefits of AP automation here.

Acumatica Cloud ERP: The Usability Leader

Finding a solution that is user-friendly and functional is a key decision process in the ERP evaluation stage. As we continue to break down the smaller components of ERP and why they matter in the bigger picture, we invite you to learn more about your path to purchase by getting a free ERP evaluation and comparison checklist from Acumatica here.

Acumatica delivers a full suite of integrated business management applications unlike any other ERP solution on the market today. Offering a wide range of products for unique industry needs, Acumatica ERP features a strong cash management application for businesses who need a flexible, adaptable, and robust ERP solution that will grow with them.

Acumatica Accounts Payable is part of the Acumatica Financial Module and integrates with other necessary functionality based on your industry and unique needs. Learn more about Acumatica Financial Management, your path to making an ERP decision, and contact us to learn how we can help you.

ERP Decision Making: Managing What Goes In with Powerful AR

ERP Decision Making: Managing What Goes In with Powerful AR

There are few things that could be considered to be “easy” about the ERP decision-making process. However, one of the first steps to a successful decision is to find out what features are most important to your business, choose a solution with that can handle your unique needs, and move forward.

From the main modules to the specific features, you’ll rarely find something perfect for everything, but by focusing on the things that matter most, you’ll end up with a solution that benefits you now and in the future.

At Integrated Business Group, we’ve worked with companies like yours to assist you through the decision and implementation process, helping these organizations to understand their options and make a decision that sets them up for long term success. In this, we are breaking down what ERP is and discussing the many parts that need to work together to benefit your business—starting with financial management.

The Sum of Its Parts: A Continued Deep Dive into the Financial Management Module

Financial management is the core of your ERP platform—no matter what it’s connected to, data and money flows through it. Throughout your ERP decision making and discussion process, you will spend a great deal of time analyzing the features and functionality of your financial management module because once you implement, your people will spend a lot of time in it.

Just as ERP represents everything included within it, financial management is as well. From General Ledger to Tax Management to Deferred and Recurring Revenue and more, everything needs to flow.

In a recent blog, we discussed the capabilities and benefits of a powerful cash management solution as part of your ERP platform. While this blog explored how to track current cash flow and understand future needs, we would today like to turn our attention on how the money gets there.

Accounts Receivable: Top Features and Benefits of a Powerful AR

You expect your customers to pay you in a timely manner, but tracking the money as it moves from likely-paid asset to collected cash requires the right technology. Whether or not you’ve collected the cash, commissions need to be paid, taxes need to be tracked and reported, and when a customer does pay, the payment needs to be applied.

Knowing this, an AR platform that can do all of this while connecting efficiently to the GL, CRM, and other financial management applications can ease the constant strain that goes on managing these processes.

What Is AR Functionality in ERP?

Getting from ‘agreement to buy’ to ‘invoice sent’ to ‘cash collected’ is one of the most common processes in accounting and selling. Knowing this, there are many concerns that go into the process—especially in the wake of the new revenue recognition standard, where accounting for sales transactions will be based on the fulfillment of performance objectives.

Accounts Receivable functionality tracks the invoices awaiting payment, tracking all the money your company is owed but has not collected yet. This includes invoices you’ve sent for products or services you’ve already delivered. Here’s how to find a solution that helps you improve your collections by automating processes, tracking receivables, and running comprehensive reports.

Why Is It So Important?

In order to deliver a positive customer experience, one of the most important processes a business needs to do is offer a flexible buyer experience that matches customer expectations and needs. With a powerful AR platform, you can offer this flexibility while making it easier to track invoices and payments.

A fully integrated AR platform delivers the flexibility and automation you need to simplify the way you collect money, making it easier for customers to pay, convert from potential money to real cash, and calculate totals for things like sales tax, commissions, and interest. This will help you to improve customer satisfaction, reduce uncollectable debts, stay in compliance, and streamline operations.

Things to Look For

As we discussed in our blog on cash management, there are a few things that make an AR software better than others, and things you should rank your potential choices on:

  • Flexibility: Whether you need to send invoices in a wide range of formats or need flexible billing functionality, you need to seek out a solution that can adapt to customer needs—as well as your own.
  • Payment Handling: Adjusting to customer needs requires more than just the ability to send an invoice in a range of formats. You also need to accept payments the way your customers want to pay. For example, accept PCI-compliant credit card payments with flexibility to handle manual charges, transaction voids, and refunds.
  • Automation: With many companies working in the subscription economy, being able to automatically send recurring invoices has often become a necessity for modern businesses. However, it goes beyond that. Simplify the approval process, automatically send reminders, track interest on late payments, and flow information into the right entities, accounts, or ledgers using the right currencies and tax codes.
  • Compliance: From sales tax automation to deferred revenue tracking, the ability to track AR balances by performance obligation and account for these at the right time will be an imperative under ASC 606.
  • Reporting: Spot potential problems in collection before they become real ones. Stay up to date with over-limit accounts, aging accounts, and expiring credit cards, report on collections and get a single version of the truth.

Learn more about other key features of AR software here.

Acumatica Cloud ERP: The Usability Leader

Finding a solution that is user-friendly and functional is a key decision process in the ERP evaluation stage. As we continue to break down the smaller components of ERP and why they matter in the bigger picture, we invite you to learn more about your path to purchase by getting a free ERP evaluation and comparison checklist from Acumatica here.

Acumatica AR is part of the Acumatica Financial Module and integrates with other necessary functionality based on your industry and unique needs. Learn more about Acumatica Financial Management, your path to making an ERP decision, and contact us to learn how we can help you.