A year has passed since COVID-19 was identified in the U.S. Since then it caused the largest contraction in economic activity since the 1940’s, and ushered in a new way of doing business for many industries and companies. Cash flow dried up for many businesses as customers closed and AR payments were delayed.
Companies were forced to close their offices, and remote work became the norm for many. This seismic shift to working remotely disrupted the flow of information and documents. Companies using manual systems were impacted heavily.
COVID-19 increased issues with on-time payments, and created a cash flow problem for many companies.
Accounts Payable Problems
AP departments stopped working until personnel could get set up to work remotely. Companies with manual systems had to get mail forwarded from their offices. Invoices and statements went unseen for long periods. Payment approvals were difficult to obtain. Checks were processed manually if possible. Accounts payable balances were not updated regularly.
Payments by check were further delayed by problems with the postal system. Mail processed through major postal facilities was delayed for weeks.
Accounts Receivable Problems
Manual accounts receivable systems handicapped companies when their offices closed and personnel had to work from home. Payments were not processed and applied regularly. Customer accounts were not kept updated on a timely basis. Customer accounts payable contacts were difficult to reach.
On-time payment issues were a less of a problem for companies with digital solutions. Accounts receivable and accounts payable cloud-based solutions with customer/vendor portals and digital processes kept vendors and customers connected whether they worked remotely or not. Digital information continued to flow and be updated, reducing the impact of COVID-19 on payments and cash flow.
Digital solutions can reduce or eliminate late payments. They minimize the issues that can cause delays in processing payments, resulting in increased efficiency, reduced costs, and increased profits and cash flow.
With a connected accounting solution for your accounts receivable and accounts payable teams to coordinate work with customers and vendors, you can go digital and enjoy the benefits of office automation.
Lockstep, a leader in cloud-based connected accounting solutions, can help you boost productivity and optimize cash flow with:
- Digital Onboarding – Collect master data directly from your customers and vendors
- Accounting Inbox – Make it easy to divvy up work and track progress
- Smart Automation – Automate menial task with accounting integration
- Online Accounts – Give customers and vendors online access to their accounts
Lockstep is an experienced software partner that can help you increase efficiency and accelerate cash flow.
If you would like to learn more about how you can benefit from connected accounting solutions, please contact Lockstep at www.lockstephq.com.