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Cash flow problems keeping you up at night? You’re not alone. Managing cash flow is a constant challenge for many small and medium-sized businesses (SMBs). In fact, 82% of small businesses fail due to cash flow issues.  So, learn how to improve cash flow and get your finances back on track.

Delayed payments, manual invoice processing errors, and lack of real-time financial visibility are common culprits. But there’s good news: you can transform your Accounts Payable (AP) Process with AP automation to significantly improve your cash flow.  

Streamlined invoice processing 

We all know it—manual invoice processing is a hassle. It’s slow, error-prone, and eats up valuable time you could be spending on other, better things. Some businesses spend an average of 11 hours processing a single invoice manually. AP automation changes the process by digitizing and automating these tasks. This means invoices are processed quickly and accurately, reducing delays and errors that can mess up your cash flow. 

Improved payment cycles 

Late payments can lead to late fees and strained supplier relationships. On the flip side, early payments can mean missing out on valuable discounts. AP automation helps you hit the sweet spot by managing payment schedules efficiently. You can set up automatic payments and approval workflows to ensure invoices are paid on time, every time. This not only avoids late fees but also opens the door to early payment discounts, which can give your cash flow a nice boost. 

Real-time visibility 

One of the biggest pain points for SMBs is not knowing exactly where they stand financially at any given moment. AP automation offers real-time visibility into your cash flow with detailed reports and dashboards. You’ll have an accurate, up-to-date picture of your accounts payable, allowing you to make informed financial decisions, forecast cash flow more accurately, and nip potential issues in the bud.  

Reduced processing costs 

Manual AP processes can be expensive, costing businesses between $12 and $30 per invoice when you factor in data entry, paper handling, and error correction. AP automation slashes these costs by eliminating the need for physical paperwork and reducing human intervention. The savings from reduced processing costs can be reinvested into your business, further improving your cash flow.  AP automation software often allows you to pay bills at minimal to no cost, maximizing your financial efficiency. 

Increased accuracy and compliance  

Errors and non-compliance can be costly. AP automation reduces the risk of mistakes and ensures compliance with financial regulations and internal policies. By standardizing processes and maintaining accurate records, you avoid costly errors and penalties that can drain your cash flow. Also, it makes audits a piece of cake by providing easy access to digital records.   

Moreover, automated AP systems strengthen financial controls by monitoring cash flow, balance sheets, and P&L statements, helping uncover issues and guide decisions. They also guard against fraud, using tools for vigilant payee monitoring and maintaining fraud management measures like blocked payee lists.  

For global operations, these systems aid in tax compliance by selecting correct tax forms and automating compliance rules, simplifying year-end reporting and tax calculations. 

Better supplier relationships 

Who doesn’t like to get paid on time? Everyone does, and your vendors too. Vendor relationship management is crucial for any SMB. Timely and accurate payments facilitated by AP automation can strengthen these relationships. This can lead to more favorable payment terms, discounts, and a more flexible approach to credit—all of which can have a positive impact on your cash flow.  

Scalability for growth 

As your business grows, so does the volume of invoices and payments. AP automation systems are scalable, handling increased workloads without needing extra finance staff. This ensures that your accounts payable process remains efficient and effective, supporting your growth without straining your cash flow. 

Transform your AP process with Forwardly 

Now, if you’re eager to streamline how you handle payments, look no further than Forwardly’s effortless accounts payable automation. With Forwardly, you can transform your AP process with one-click payments, saying goodbye to monthly fees, sharing account details, and pre-funding bank accounts. You can enjoy seamless free bill payments with our accounts payable software, which sends payments instantly in just three easy steps: 

Upload your bills 

Import your bill records seamlessly with our integration with QuickBooks Online, FreshBooks and Xero, ensuring easy record import and automatic reconciliation with 4-way sync capability. 

Approve and schedule payments 

Approving and scheduling payments is now as easy as clicking a button. No more late fees sneaking up on you! With customizable payment approval thresholds and user roles, you can tailor everything to fit your team’s needs perfectly. Also, get real-time notifications for every payment stage—sent, pending, and received—so you’re always in the loop.  

Execute payments 

Business payments are delivered in seconds if your bank supports the FedNow Service or the RTP Network, processing within 60 seconds. Even if your bank hasn’t adopted instant payment technology yet, Forwardly ensures smooth processing with same-day ACH transfers, at no additional cost. 

So, let’s stop stressing about cash flow and start taking control with Forwardly. Because when it comes to your business, smooth finances mean smoother sailing. Get started for free here.  

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