We all know what makes companies tick and that’s AR payments coming in, on time so any small to medium company can plan everything from wages, operational costs and the company’s liabilities.
Many companies emphasize Accounts Payable (AP), ensuring timely payments to vendors. While this is important, the reality is that a company’s survival hinges on the management of outstanding invoices in the Accounts Receivable (AR) ledger. Prioritizing AR is crucial for maintaining cash flow and financial stability.
Let’s revisit some insights from Sage a few years back.
We understand that late payments can cause significant financial stress, especially for small and medium-sized businesses. When payments are delayed, valuable time and resources are spent chasing them, impacting day-to-day operations, staff and supplier payments, and future growth.
To better understand this issue, Sage surveyed over 3,000 SMBs in 11 countries. We found that 1 in 10 invoices are paid late, and up to 10% of payments are never received or written off as bad debt. Imagine a company turning over USD 20M and they have a USD 2M written off every year. That’s a serious issue that must be avoided at all costs.
For example in the U.S.A, the impact of late payments is clear:
Imagine a cloud application with no installation needed. It’s a fully managed service that integrates securely with your accounting system, automatically generating and storing all your financial documents in the cloud.
Documents are sent to vendors via encrypted email, letting them access invoices, delivery proofs, and other documents with just a click. This cuts down on queries and speeds up payments, making everything run more smoothly. It’s a proven system designed to encourage prompt payment with clear, documented proof.
That’s Capisol, the leading AR consolidation platform, with over 670 sites and growing worldwide!
Timely AR payments are essential for SMBs to manage cash flow and maintain financial stability. While focusing on Accounts Payable is important, prioritizing Accounts Receivable can significantly reduce financial stress and operational inefficiencies.
Implementing a cloud-based solution that securely integrates with your accounting system can streamline the payment process, minimize delays, and ensure timely payments, ultimately supporting smoother operations and better financial health.
Ready?
