The Role of Integrations in Streamlining Account Receivable & Account Payable Processes

Apr 22, 2021

A frictionless accounts payable and receivable strategy enables easy access,  hassle-free management, and effortless payment information interpretation. Nevertheless, complicated processes and obsolete technologies can be a significant stumbling block.

 Businesses accepting payments must be ready to pair all received funds with the various invoices. A slight mistake like claiming an invoice that has already been paid can ruin the customer experience. Such hiccups explain why most companies are searching for user-friendly account payable and account receivable solutions that ease payment data processing and management.

 Jason Hagan,  an expert at the First National Bank of Omaha (FNBO), feels that the coronavirus has further fueled the need to digitize AR and PR operations. Companies are now integrating their back-end with banking solutions to streamline these vital organizational processes.

Switching to a New Approach

In most organizations,  accountants must shift between different software and manually tackle several tasks, resulting in worker burnout and further costs. But as we pace the shift towards new technologies, we realize it’s possible to automate most of these processes.

Groundbreaking automation and integrated tech eliminate the need to switch between different software and hardware. For instance, combining AI with machine learning and technologies like optical character recognition is a  much faster way to access invoice data, free employees of such duties, and ensure timely account receivables.

According to Hagan, most companies that automated AR duties never laid off the employees who tackled those tasks. Most were redesignated to other vital responsibilities such as maintaining relations with slow-paying business partners.

Companies might also make the most digital advancements that enable better analysis of account receivable data for valuable clues like spotting customers that are likely to heed reminders and pay on time.

Integrating with banks 

But implementing such complex automation AR & AP upgrades call for help from your banking partners. 

Banks can easily tie payments to specific invoices and combine payment data in multiple ways easing the access and processing of payment data.

Merchants must seize these opportunities and allow banks to handle the back-end to speed up workplace processes.

Final Words 

Late payments due to a poor AR/AP strategy can threaten to slow down your business’s money flow. A fast and straightforward AR and AP process is essential in helping companies maintain a healthy cash flow.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.