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Plooto's receivables and payables

Accountants are innovators. In 1952, they were early adopters of IBM’s first large computer, using it for business applications like billing and payroll. By 1985, bookkeepers began to automate manual tasks with Microsoft Excel — and never looked back.


Today, accounting software has moved to the cloud, making it more secure and accessible. And although most bookkeepers and business owners regularly rely on accounting software like QuickBooks and Xero, some hesitate to automate some of their most time-consuming tasks — like accounts payable (AP) and receivable (AR).

Many businesses are afraid to try digital cash management for various reasons. We’ll dispel those myths and explain why the time for AP and AR automation is now — especially for Canadians, who can bid adieu to Canadian Revenue Agency (CRA) hassles.

Let’s innovate and automate.

  • Dispelling four digital cash management myths
  • The benefits of AR and AP automation 
  • Automated AR: Get paid faster 
  • Automated AP: Painless payments
  • Getting started with AP and AR automation 

Dispelling four digital cash management myths 

In Canada, business investment in innovation has declined since the turn of the century. It wasn’t always this way. In fact, Canadians invented the search engine, the telephone, and the light bulb.

Embracing innovation transforms emerging businesses into growing ones. So let’s examine why some accountants, bookkeepers, and business owners hesitate to try digital cash management.


1.  “Digital cash management sounds complicated.”

To be fair, traditional accounting processes can also be complicated. Take chasing receivables. Tracking down invoices. Paying the CRA. Or waiting in line at the bank. These are all repetitive tasks businesses can — and should — give up.

There’s often a learning curve with new software. But automated workflows are much simpler than traditional processes. Complete solutions that combine AR and AP automation are even easier to adopt and use. 

2.  “AP and AR software won’t work with other accounting tools.”

Choose accounts payable and receivable software designed to integrate with leading accounting software like QuickBooks and Xero. Syncing AR, AP, and accounting software enables combined financial data for better decision-making. Integration also makes payment reconciliation seamless, accurate, and automatic.

3. “My accounting process is more secure.”

For the most part, cloud computing makes digital accounting safer than most traditional methods. Ever misplace a financial document, like an invoice, check, or file? Hunting for it is a pain, but accidentally exposing sensitive information — such as account, credit card, and social security numbers — is a serious security risk.


In the cloud, encryption keeps data safe from unauthorized third parties. Data is backed up frequently. Software that offers two-factor authentication adds protection. For even greater peace of mind, make sure the platforms you’re considering are insured and ISO-certified. 

4.  “Accounting automation will put me out of a job.”

Quite the opposite. By taking over tedious tasks, automation makes accountants and bookkeepers more valuable. It frees them to analyze, collaborate, and problem-solve. And when business owners no longer have to monitor cash flow, they can focus on customers, profit, and growth.


The benefits of AP and AR automation 

Automating AR and AP processes digitizes cash management, which boosts visibility and collaboration by making real-time financial data and reporting accessible to everyone who needs it. It also gives you greater control over your cash, automatically (and accurately) reconciles payments across software, and enables stress-free, secure transactions.

A word to the wise: Seek an all-in-one platform that automates all your payment workflows. Otherwise, you’ll waste time switching between AR and AP applications.

Automated AR: Get paid faster 

In a survey of mid-sized businesses, QuickBooks found that, on average, they were owed $304,066 in past-due invoices. And 89% said late payments were holding back growth.

Automation significantly
accelerates receivables. It digitizes the capture of receivables data, streamlines the distribution of receivables information, and expedites cash application — immediately reconciling outstanding invoices with incoming payments.

AR digitization also reduces human errors and makes receivables data easily accessible to those who need it. That means better-informed customer service, fewer disputes, and faster resolutions.

Real-world AR automation

Now, we don’t have to think about invoicing our clients every month …the fee shows up in our bank account!

- Varun Sehgal, Partner, Think Accounting. Read Varun's story >.

Other benefits of automated AR include:

  • Eliminating endless calls and emails to delinquent accounts 
  • Offering customers more ways to pay, from checks to transfers and credit cards
  • Reducing outstanding payments and bad debt through Pre-Authorized Debit Agreements (PADs)

Automated AP:  Painless payments

Ever feel like you spend way too much time processing invoices, matching POs, and reconciling payments? You probably are.

In fact, 81% of CFOs surveyed think they have "the most manual labor-intensive role on a day-to-day basis" compared with their peers — and that's at the executive level. 

With automated AP, you can automatically customize and route approvals by amount and approver. Make check payments without in-person signatures or approvals. And pay partners around the world as easily as those across the street (you don’t even have to convert currency).

A bonus for Canadians: Some automated AP platforms let them bypass bank lines and clunky portals to pay the CRA.

Real-world AP automation 

We saved our clients' sales teams valuable time and stress. They no longer have to reach out to their customers for payments or obtain payment-related information. Long-dated receivables are substantially reduced — if not eliminated.

- Ally Ladha, Co-Founder and CPA, AMLB CPAs and Consulting. Read Ally's story >

Other benefits of automated AP include:

  • Making next-day vendor payments
  • Delivering two-day payments
  • Enabling secure ACH/EFT payments, credit card payments, and wire transfers


Getting started with AP and AR automation 

Thinking about automating your AR and AP processes? Getting started is easier than you think. Use this checklist to evaluate your options:

  • Is the software free to try?
  • Does the platform combine AR and AP automation in a single solution?
  • Will the platform scale with my business’s needs?
  • Does it process payments in 1-2 days without extra charges?
  • Is the vendor ISO-audited and certified?
  • Does the software offer two-factor authentication?
  • Does the platform encrypt data in transit and at rest?
  • Does the vendor offer insurance for additional projection?
  • Does the company provide comprehensive training and support?

Of course, Plooto meets all these requirements. Plus we're trusted by more than 10,000 businesses like yours, so start a free, 30-day trial today.

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