How automated payables can help software resellers save time and money

Companies specialising in providing cloud or bespoke software solutions to businesses grapple with a unique challenge of managing their cash flow and working capital. On the one hand, suppliers expect payments to be made on time, whereas clients want payments to be made as late as possible. The management of payments can become a monstrous task if there is no good financial process or system in place that keeps track of all bills due and all payments incoming. This consumes time and negatively impacts not only cash flow but also the bottom line of the business by detracting attention from cash-generating activities. In this article we’ll explore how a comprehensive financial operations platform, combined with automated payables and payments across multiple currencies can help software resellers save time, money and optimise working capital.

The goal of optimising working capital is to have more cash available for day-to-day operations as both short-term assets (such as sales) and liabilities (such as bills) are balanced. In order to keep cash flow balanced and all bills paid as soon as invoices are issued, payments need to be automated. Using a platform that lets you automate receivables and payables processes can greatly improve available cash.

The automated collection of receivables can ensure that payments are received as soon as sales are made. You should also be able to segregate incoming payments into different accounts or sub-accounts on a single dashboard, so that you can see which parts of the business are most profitable. Moreover, if your clients can pay in their own currency, neither side will lose on transfer fees and the payment will reach your account faster if paid into a virtual account with local IBAN via a local payment rail.

With automated payables, you can streamline your workflow from receiving bills to processing payments to reconciling invoices. By accelerating payment cycles, Treasury and Finance have more time to manage working capital. Furthermore, you can also manage your supplier relationships by using scheduled payments or partial payments, so that payments arrive on time or extend the DPO. Long-term, the better your relationship with the vendors, the more likely you will be to negotiate better payment terms and discounts that strengthen your reputation and improve your cash flow. In addition, aggregating all bills on one platform, and automatically executing them from there, minimises fraud risk, duplicate and erroneous payments.

As mentioned before, having all bills in one place helps streamline payment runs and overall efficiency of the financial operations - Being able to expedite them from the same platform without logging in and out of different systems saves huge amounts of time and cognitive burden and prevents errors. To simplify the process further, payments to the same supplier or in the same currency can be grouped together into bulk payments.

Finally, reconciling bills can be automated with an accounting tool or ERP system. Besides being retrieved immediately to create the payment, they will also be reconciled instantly once the payment is executed, saving even more time and energy for the finance team.

Veracloud specialises in comprehensive cloud solutions, including physical, virtual, and cloud-based technologies, networking, storage, and security, and collaborates with industry leaders such as Microsoft, Cisco, and others. They faced a unique challenge concerning payments, and the number of bills that had to be paid every month impacted their cash flow. With Fyorin's accounts payable automation, Veracloud has revolutionised its financial operations. Veracloud was previously plagued with significant errors and wasted time due to a manual workflow for managing supplier bills. Fyorin's solution centralised bill management and automated supplier payments, alleviating these challenges. Xero integration synchronized data between the two platforms, created payments and facilitated manual reconciliation, eliminating manual entry and errors. This resulted in substantial time savings of 120 hours per year and €40,000 in annual savings for Veracloud as they streamlined their payables without growing the financial team.

Additionally, Fyorin's solution optimised Veracloud's cash flow management and spending visibility. Fyorin's platform allowed Veracloud to achieve faster and cheaper USD and EUR transactions, as well as improved relationships with suppliers, resulting in better payment terms. Their bottom-line finances improved, as well as their overall control over finance and long-term financial health.

If you're a software reseller looking to streamline your global payments, improve overall financial operations efficiency and optimise cash flow, don't hesitate to get in touch with us at sales@fyorin.com