Businesses have to go through countless number of struggles from the very beginning. The most common and impactful problem that the business face is the lack of working capital or lack of cash- flow. The small and medium-sized business often fail due to the same problem. The cash-flow issues are caused because of imbalanced accounts receivable. Accounts receivables is the credit payments which the company has to receive from their customers. When the customers get the service or goods delivered to them on credit basis and don not make the payments on time, then it becomes very difficult for the companies to carry out their routine operations. Every business requires working capital more than the profits and other achievements. Accounts receivable software integration should be done to solve this problem
The accounts receivable concerns can impact the company in the following ways: –
- Unable to work on new assignments
The business has to have consistent sales as well as consistent cash-flow. Closing sales deals and gaining profit will not be beneficial to the company until and unless the company receives payments from the customers. For carrying out the routine business processes funds or working capital is required. The delayed payments by the customers halts the normal functioning of the business, due to which new assignment cannot be taken up by the company. The lack of working capital slows down the operations and often the company gets behind the schedule as compared to the plan. Thus, it affects the growth of the business.
- Impact the related parties
The delayed payments negatively impact the business. All the connected parties to the business are also affected by the lack of working capital. The employees, the suppliers and all the other parties to who the company has to make the payments are impacted, as the companies are unable to pay them. This also brings down the company’s reputation. Therefore, the company should automate its accounts receivable process to avoid such problems. Installing ar integration for quick Books will be very beneficial for the companies.
- Business processes
The smooth working of business and its routine processes can be facilitated only by sufficient and consistent cash-flow. Working capital essential for routine business operations. Due to delayed payments the business operations slow down and falls behind schedule, this affects the overall working of the business. Thus the companies should work on getting their accounts receivables more than the accounts payables. This way the working capital will be consistent and the operations will be carried out smoothly. There are many ar receivable software integration which will help in solving these problems accurately and efficiently.
- Credit Demands
The company has number of different expenses, to run the business. These include the payrolls of the employees, Paying the suppliers and other parties, paying of loans, paying credit card bills, etc. All such expenses are to be paid by the company on time which is not possible due to such problems.. The delayed payments result in insufficient funds and all these payments are further delayed. The delayed payment by the company to different parties, ruins the reputation of the company. The credit rating and the reliability for levying credit is deeply affected due to which the company has to suffer. This makes it more difficult for the companies to get credit facility in the future. The companies should focus on getting different accounts receivable software or apps like Troveworks Quickbooks integration app which is easy to access and also affordable.
- Shut Down
The worst impact would be that the company has to shut down. The lack of cash- flow cripples the company and is forced to shut down. This mostly happens with the small to medium-sized companies. The insufficiency in funds results in slowing down the overall business processes which make the company incur loss and fall in debts. The severe impact on the company make its difficult for the company to survive resulting in shutting down the business.
Therefore, it becomes essential for all the businesses to get their accounts receivables balance and maintain a positive cash-flow position. The best way to avoid problems related to delayed payments is by automating the accounts receivable process. Different kinds of accounts receivable technologies are being used and proven to be very successful in keeping proper records of all the customers, sending out accurate speedy invoice, sending regular reminders, etc. Hence the level of efficiency and accuracy increases which is beneficial for smooth working of the business. The balanced accounts receivables will result in maintaining financial health of the company. This will lead to further growth and expansion of the company. Thus the businesses should focus on getting their accounts receivable management and process automated to ensure long term success and growth.
