The success of any business – small or big – is measured by the number of paying customers. The revenue generated from customers constitutes the majority of the cash flow that greases the wheels of your business. However, one of the key challenges that most organizations face today is delay or lapse in invoice processing. Like other financial tasks, invoice management is pretty complex. Also, we are prone to make mistakes, which further affects the timeline of invoice payments.
To make the process easy and simple, you can use vendor invoice management software like ZikZuk’s BFM (Business Finance Manager) that can seamlessly integrate with your Tally account enabling you to access tally data on mobile. But more about BFM later. Let’s first quickly define vendor invoice management.
What is vendor invoice management?
Vendor invoice management or invoice processing (or simply bill payments) is the process of ensuring that you are quickly and accurately creating invoices, sharing them with your vendors, and receiving payments on time. Although it should work in a streamlined fashion, it is often marred with issues. Some of them are listed below:
Manual processing: The majority of invoices created today are done through a manual process, which doesn’t just delay the process but leads to errors.
Invoice accuracy: It is a common understanding in the industry that invoices are seldom accurate and therefore calls for detailed scrutiny.
Delay in invoice creation: Due to heavy dependency on accountants, most organizations end up delaying invoice creation and sharing it.
Improper invoice tracking: Almost 82% of the finance departments claim that they are overburdened by the number of invoices they have to process. This can put your invoice in limbo, and the onus falls on you to properly track the invoices.
To ensure that you properly manage your invoices, you need a robust platform that can automate the majority of invoice processing systems like BFM.
BFM – Your ideal vendor invoice management software
BFM is a smart business intelligence platform that is built on AI/ML technologies to automate complex finance tasks like vendor invoice management. It offers you great capabilities to smoothen your receivable collections process and ensure proper cash flow management. BFM offers below features:
Automating invoice management
With BFM, you can automate the end-to-end invoice management lifecycle making sure that there are no delays or inaccuracies while creating invoices. Automation is a core aspect of BFM achieved through smart AI/ML models.
Faster invoice creation
With BFM, an invoice can be generated as soon as you make a sale and it is entered into the system. By easily integrating Tally with BFM, you can access Tally data on mobile, which makes invoice creation a seamless process as all the details are housed in one place.
Customers often require regular and timely reminders regarding invoice payments. However, it might not be feasible for you to manually track and send follow-up emails. This is why we designed a unique workflow within BFM that sends out automated reminders through SMS, email, and WhatsApp.
Filtering out notorious customers
BFM generates valuable insights about your business finances including the list of customers who are historically unreliable in honoring invoices. Using this data, you can impose strict terms on such customers to ensure timely payments.
Make a data-driven collections strategy
Most organizations have a window during which they pay out their bills and this window may differ from business to business. Therefore, you can generate visualized reports on the average collection period and adjust your cash flow accordingly to avoid cash crunch issues.
If you’re struggling with invoice processing and are looking for the top vendor invoice management software, try out BFM for free here.