Enterprise-quality software is now within reach for growing businesses and accounting
firms. It’s also become much easier to implement and use

That’s a welcome development for accountants at firms beginning to embrace emerging
technologies: 48% plan to invest in automation and AI, according to a recent
QuickBooks survey.

Third-party technology that automates payments, invoices, payroll, and other
accounting functions gives accountants and bookkeepers the space to analyze,
innovate, and help their clients grow. Keep reading to learn:

1. How third-party tech saves time
2. How third-party tech saves money
3. How third-party tech enables client retention and expansion
4. How third-party tech increases security
5. How to reinvest the time and money you save

How third-party tech saves time

Third-party software can automate most — if not all — of your time-consuming, manual accounts payable (AP) and receivable (AR) processes.

Accountants and bookkeepers spend hours entering invoices and dumping financial data into Excel. By automating payment workflows, third-party software prevents human errors while making reporting more accurate and reliable. AP and AR software also:

• Streamlines reconciliation: It automatically syncs all your financials across accounting systems, bank accounts, and other platforms.
• Improves cash flow visibility: When opportunities arise, real-time views into payables and receivables mean you’ll know what clients can (and can’t) afford – opening the chance to provide strategic counsel as a service.
• Eliminates physical check payments: When you digitize checks, there’s no more chasing approvals or signatures, plus reconciliation is automatic.
• Expedites Canadian Revenue Agency (CRA) remittance: Say goodbye to waiting in line at the bank or trying to navigate the agency’s complex payment portal.
• Automatically sends recurring payments: Payment software lets you schedule payments, ensuring they get paid on time with zero effort.

What are accountants doing with the time they save using third-party software? A QuickBooks survey found that 80% of accountants say technology helps them spend more time with their clients.

There’s more: 82% of respondents claim that using tech has made time with clients more meaningful.

How third-party tech saves money

It may seem counter-intuitive. But in the long run, paying for third-party technology is less expensive than continuing to handle AP and AR functions the old-fashioned way. Here’s why:

• Accounting errors are costly. When you enter data all day, it’s easy to misplace a decimal or mistype a digit. Even assuming most accounting errors are caught, others may result in a small, steady stream of cash trickling away from your clients. Worse mistakes could lead to misinformed investment decisions – putting client retention at risk.
• Physical checks aren’t cheap. Automating payable and receivable functions means your business can stop cutting physical checks. For starters, checks are a hassle to write, send, and deposit. And when you account for postage and other fees, the costs of sending manual payments add up quickly.
• Time is money. It may sound like a cliche. But the less time you spend manually entering payments, balancing books, and reconciling accounts, the more time you have to focus on running your firm, delighting clients, and attracting new ones.

How much money can third-party software save businesses? Constant Contact reports that 28% of companies using automation and AI expect to keep more than $5,000 next year.

How third-party tech enables client retention and expansion

Automating AP and AR functions with third-party software lets you process, send, and receive money faster. In addition to greater peace of mind, expedited payments help you gain client trust and offer more services:

• Make cash flow much more predictable: When you have real-time visibility into available funds, your client no longer has to worry about paying bills or employees and incurs fewer late fees.
• Alleviate client financial stress: You’ll spend less time waiting for funds (and wondering when they’ll arrive) — a relief for growing businesses with thin margins.
• Enhance liquidity: Eliminate guesswork when unexpected expenses (or opportunities) arise.
• Make vendors, suppliers, and partners happier: Timely payments improve relationships and may lead to more favorable terms for your client. Plus, automated invoice follow-ups and reminders mean no one has to hunt down past-due payments.
• Offer new services: When your client has confidence in their cash flow, you’re able to use that data to provide consultative services on investments and growth opportunities, opening new revenue streams for your firm.
  
  

How third-party tech improves security

Outdated desktop software, manual processes, and physical checks are fraud magnets. By moving financial data to the cloud, AP and AR software makes sensitive financial data more secure and compliant through:

• Advanced security features: From encryption to two-factor authentication and fraud detection algorithms, payment automation software detects cyber threats and prevents unauthorized access.
• Worry-free compliance: With frequent patches and updates, AP and AR software remain in step with financial regulations and standards, from PCI DSS for payment card transactions to Canada’s Personal Information Protection and Electronic Documents Act (PIPEDA).
• Detailed and accurate audit trails: Cloud-based payment software automatically maintains real-time, easily accessible records of every transaction. If you’re audited, you’ll instantly have all the information you need at your fingertips.

Manual accounting processes carry significant risks. Payment automation software incorporates robust security measures to help keep your firm, clients, and data safe and secure.

How to reinvest the time and money you save

Accountants and firm owners have a lot on their plates, so they must find ways to make the most of their limited time and bandwidth.

Third-party technology providers securely automate and digitize payment processes while streamlining labor-intensive accounting functions. They also cut costs, fast-track payments, and reduce costly errors.

Payment automation software saves time and money that accountants can instead spend building strong relationships with clients and developing new offerings to grow their firm.

With Plooto, you can try all-in-one AP and AR automation free for 30 days. Sign up and say goodbye to manual payment processes.