Running your account payable and account receivable processes can be laborious. Even worse, inefficient payment systems can get in the way of growth. By putting a smooth, automated AP and AR model in place, you open yourself up to increased cash flow, reduced risk, and greater scalability. Here’s how.

Why Are Your AP and AR Processes Getting in the Way of Growth?

From slow processes to human errors, there are a variety of ways your AR and AP processes are getting in the way of scalable growth. Here are just a few of the issues many businesses face today.

Manual Processes That Don’t Scale

Manual processes do not support long-term growth. It’s not uncommon for payments to go unmet due to a lack of follow-up, or to see delays in production due to slow payments. From paying invoices twice to losing track of an owed amount, incorrect data entries and accidental mistakes can cost thousands. When scaling globally, companies have to meet a range of regulatory measures; understanding and fulfilling each of those manually can also be a growth preventer.

Increased Risk

Inefficient processes increase risk. Foreign exchange rates can change quickly when working internationally, cutting into your profit margins. Any financial discrepancies can be extremely time-consuming to correct. Slow accounts payable processes can affect your credit rating and goodwill and even cause late-payment fees. Manual processes also make it easier to suffer from fraud or theft.

Leveraging AP and AR as a Strategic Way to Grow

Your AP and AR processes don’t have to be a hindrance. With the right payments partner, they can become a strategic way to encourage growth. Here are some of the ways efficient payments can help you grow.

Create a Seamless Customer Experience

While important, the cost is often lower down on the list of reasons people do business than expected. The true hindrance to a great customer experience is convenience. Frictionless payments, trackable invoices, and helpful analytics go a long way in helping your experience. Offering a localized payment experience is an excellent way of removing barriers to purchasing. For example, PingPong enables customers to pay and receive locally in 11 different currencies, while also facilitating payments to over 170 countries. 

Keep Your Suppliers Happy

Paying invoices automatically and creating a streamlined approval process will help you keep suppliers happy and ensure there aren’t production delays. Happy suppliers are less likely to increase costs and more likely to prioritize your business. Additionally, being able to pay vendors in their local currency can reduce your invoice cost by removing the suppliers lifting costs.

Reinvest in Your Business

Cash is king. From being paid on time, to reducing costly errors, improving your AP and AR processes can often increase available funds. With additional finances, you’re freed up to increase your geographical scope, hire additional help, and reinvest in your business.

How To Improve Your AP and AR Processes

Improving your processes is a proven strategy for enabling growth. By following a few key steps, you can keep your clients, suppliers, and team happy.

Leverage Automation

Streamlining your operations and preparing for international growth is easier when you leverage automation. Automation can help you eliminate paperwork, find new suppliers, track your payments more clearly, achieve a faster time to production, and set up payment reminders. A key partner, like PingPong, can help you build out an automated system that grows as you do. When choosing a partner, the key components to look for are:

•       Do they operate in a currency you, your suppliers, and your clients use?
•       What are their transactions fees?
•       Can you integrate with a range of systems?
•       Do they handle your VAT and GST payments?
•       Do they automate payroll?
•       How do they handle FX payments?

Ensure your partner is transparent in handling payments and don’t get caught up with hidden fees.

Control Accounting Access

In all business areas, responsibilities should be clearly defined and delegated. As you grow, you may find you need more control over who can access and use your payment accounts. Creating a transparent system that defines who has access to, and responsibility for, each area of the AP and AR process will help enable sustainable growth and prevent unnecessary risk.

Use International Wallets

While there are many benefits to using a traditional bank, there are also drawbacks. Transfers can be slow to arrive, there is a lack of transparency, they often include high fees, and their integrations and automation options are limited. An international wallet gives you the ability to withdraw, hold, and transfer in various currencies. They help you avoid currency fluctuations and make same-day payments to multiple countries. They don’t require the administrative work bank accounts often require and can deliver a localized experience without you having to open a new bank in every country you operate in. They’re a great way to scale internationally.  

Offer Payment Discounts

Offering discounts is always a difficult and deeply personal decision. However, if your accounts receivable processes prevent growth by limiting your cash flow and you’re struggling to ensure speedy payments, payment-related discounts may help. Some businesses offer a 1-3% discount on total costs if payments are made within a certain number of days, for example, within five business days. The alternative option is instilling a fine for all businesses that do not make payment within a certain number of days.

PingPong Will Help You Scale

PingPong makes it quicker and easier to send and receive money. Whether you operate in China, North America, APAC or Europe, our platform helps you build systems and processes that grow as you do. We offer an integrated solution designed to save you time and money.

Managing the payment complications of expanding into new regions doesn’t have to be complicated. We help you build an international company by creating a process that facilitates global operations while still operating on a local level. Start building the systems you need to scale by signing up for PingPong today