What are the main aspects that differentiate manual payment management from an integrated one?
Manual vs integrated payment management
Intelligent and automated approach to payment management
Check out the features of Bankfeed.
Small and mid-sized businesses widely use Microsoft Dynamics 365 Business Central in all business stages, from supply chain management to sales and services.
However, it is still quite common that payment management is not yet integrated into the central business management system. Usually, incoming payments do not automatically enter the system, but are waiting for the accountant to take care of them.
Manual payment management – what are the major challenges?
What are the challenges, disadvantages, and losses of manual payment processing? There are many aspects; some are obvious, and some are hidden and indirect.
The first and most obvious is time. Accountants need time for manual processing of incoming payments and reconciliation with the corresponding invoices. While the task is relatively simple, it is exhausting, requiring sharp focus and complete attention to avoid possible mistakes. It also prevents the accountants from developing new qualifications or focusing on higher-value tasks.
Errors are the second aspect, and this aspect is very costly. The human mind works differently than a computer. Mistakes are inevitable, especially when the process is interrupted by phone calls or extra inquiries. The errors are hard to find, and it takes additional time. Each mistake, until corrected, has further consequences – sales to certain customers might be suspended, debts might be transferred to the debt collection company, etc.
The third, less obvious aspect is the delayed processing of payments. With manual processing, there is always a time gap between when the payment has been received and when the payment appears in the system. The accountant must be available and collect or export data from different banks, enter or import them into the business management system, and reconcile each payment with the corresponding invoice. What is the problem with that? The information on customer debts cannot be viewed in real-time. It might take several hours to weeks until the payments are entered into the system for everyone to see.
Manual processing of incoming payments is a simple task. Still, it is costly, directly (work time, focus and attention) and indirectly (incorrect data, suspended sales or debt recovery initiated on false premises).
Integrated payment management – what are the major benefits?
To avoid direct and indirect costs, associated with the manual payment management, businesses are looking for an automated payment management solution, such as Bankfeed, to be integrated into their existing business management system. What are the benefits of using Bankfeed?
The first aspect is less manual work. Integrated payment management solutions, such as Bankfeed, automatically connect to your banks, import bank statements, recognize payments, and match them with the corresponding invoices. Therefore, accountants spend significantly less time on manual tasks and can focus on higher-value tasks instead.
The second aspect is the reduced number of mistakes.
Remember, the errors are costly.
Mistakes are hard to identify, and until corrected, they might cause other unnecessary actions, such as suspended sales or a falsely initiated debt recovery process. Finally, it can result in reduced client satisfaction or even loss of a client. By automating the payment management process, Bankfeed prevents that from happening.
The third aspect is the smooth continuity of routine business operations. With Bankfeed, payments can be viewed directly in Microsoft Dynamics 365 Business Central in real time. Therefore, all decisions made by the sales or finance departments are based on actual information, so there is less space for misunderstandings and miscommunication.
Integrated payment management solutions, such as Bankfeed, save time, prevent mistakes, ensure business continuity, and make accountants happier.