If you’re thinking about automating your accounts receivable process, understanding the relationship between ERP software or accounting system and accounts receivable software is important to the long-term success and overall ROI of the project. You can’t just dive in without considering how the two systems should interact with each other.
Here are a few tips to remember when pairing accounts receivable software and accounting software.
INTEGRATION
You will be doing yourself a huge favor by selecting an accounts receivable software with integration into your ERP system. If not, you’re essentially creating more work for yourself and increasing the risk of data inaccuracy or errors. If you are excited about a certain solution but it does not have a direct integration with your accounting system, have a very detailed discussion with the vendor about how they intend to pass data between the two systems. You might also ask if an integration to you particular system is on their product roadmap in the near future. If their process for passing data will somehow put you in violation of your service agreement with your ERP/accounting system, or keep you from updating your accounting system, this may not be the best solution for you.
KEEP YOUR ACCOUNTING SOFTWARE AS THE SYSTEM OF RECORD
It’s important to ensure the relationship between your accounts receivable software and accounting system will not be a competitive one. They should work well as a team. All creation and management of financial info should be done within the accounting system, the automation solution’s sole purpose and focus should be removing manual processes and paper involved in the management and collection of invoices.
DON’T CREATE MORE WORK
A well paired accounting system and accounts receivable software will eliminate the need for double data entry, so make sure you’re not stuck entering information into both systems. The point of automation is to make you more efficient and eliminate redundant processes so there is no reason to put yourself in that position.
Accounts receivable software selection is important, but it’s not easy. There are many mistakes that can be made during selection, regardless of the type of software you’re looking for. Every business will have their own unique requirements, so no one solution will be the best fit for all. Make sure you know exactly what you’re looking for and try to find what is the best fit for you.
