Accounts receivable and accounts payable lettering consists of assigning a unique code, generally made up of letters and numbers, to an invoice and the various related payments. In practice, this means making the link between the invoice and the payments. This is particularly useful for easily identifying unpaid invoices, as well as the outstanding balance on invoices paid in instalments. Lettering accounts also saves time when preparing the balance sheet at year-end.
However, lettering can be a tedious exercise when done by hand. That’s why the use of accounting lettering software is so beneficial. So if you’re wondering how accounting lettering software can simplify the lettering process, here are the main benefits of accounting lettering software.
Advantage no. 1 of accounting lettering software: easy reconciliation of transactions
First and foremost, using an accounting lettering software package makes it easier to reconcile the accounting entries relating to the invoice on the one hand, and the various payments on the other. In fact, thanks to automated lettering, the software takes care of reconciling the various accounting entries. This eliminates the need for accounting staff to spend hours comparing books.
Similarly, the use of lettering software saves teams a great deal of time when it comes to checking and correcting transactions.
In addition, discrepancies and errors can be quickly identified. Customers can then be contacted to request corrections or payment of outstanding invoices.
Accounting lettering software is also an invaluable tool for debt collection, as it enables you to react without delay, with all the latest information at your fingertips.
Advantage no. 2 of accounting lettering software: improved data accuracy
Accounting lettering software is also advantageous when it comes to reliability. The software’s algorithm is not only capable of lettering third-party accounts, but also of identifying duplicates. This avoids discrepancies whose cause may be difficult to understand in the midst of hundreds of accounting entries. Accounting lettering software also reduces human error. Indeed, since data entry is no longer done manually, the risk of typing and other errors is greatly reduced.
Finally, the software updates the information on a regular basis. As a result, the accounting and/or collection departments have reliable data at their disposal, which they can use to identify invoices for which reminders should be issued. This avoids unnecessary reminders, which can be poorly received by customers and thus damage the business relationship.
As a result, the use of accounting lettering software improves the reliability of a company’s financial information, and thus facilitates strategic decision-making. This is all the more true with debt collection and accounting lettering software like CashOnTime, where artificial intelligence (AI) is at the service of your specific needs. In fact, :
- constantly adapts to your specific needs;
- learns from past letterings;
- learns from customer habits.
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This greatly increases the reliability of lettering. And for the most complex letterings, the software can ask the teams in place to arbitrate. In this case, several lettering combinations are proposed. This is known as intelligent manual lettering.
Advantage no. 3 of accounting lettering software: optimizes cash management
Another advantage of accounting lettering software is that it optimizes your company’s cash flow management. Using lettering software enables you to monitor cash receipts and disbursements very precisely, as it performs both accounts receivable and accounts payable lettering. This makes it very easy to know the company’s cash position, and to anticipate cash flows reliably. For example, it is possible to forecast cash flows on the basis of transfer advices. This involves automatic reconciliation of the notice. Invoices can then be pre-accounted for on receipt of the transfer advice. This means no intervention is required when the transfer arrives.
On the other hand, accounting lettering software highlights late payments and uncollected receivables. And yet, we know that responsiveness is key to the success of amicable collection procedures. The sooner unpaid debts are identified, the sooner the problem can be solved and the sums due recovered.
Last but not least, accounting lettering software proves to be a real asset during peak periods, when large volumes of accounting data need to be processed in a short space of time. This is particularly the case for monthly closings or year-end closing.
Advantage no. 4 of accounting lettering software: simplifies the preparation of financial reports
The final advantage of accounting lettering software is that it simplifies the preparation of financial reports. This type of software automatically generates financial statements. Dashboards can also be consulted to easily monitor third-party accounting items (customers and suppliers). In addition, accounting lettering software offers the possibility of going one step further by carrying out in-depth analysis of financial data, if required.
Conclusion
The use of an accounting lettering software offers many advantages, such as :
- automate the transaction reconciliation process to save time and improve efficiency;
- improve the accuracy of accounting data thanks to artificial intelligence and the elimination of human error;
- optimize cash management by forecasting cash flows, identifying late payments and anticipating transfer notices;
- simplify financial reporting with automated generation of financial statements and more in-depth data analysis.
Consequently, the use of accounting lettering software is of strategic importance to a company. On the one hand, it is an essential tool for ensuring smooth monthly closings and efficiently managing high-volume peaks in activity.
On the other hand, it’s a trusted partner for ensuring reliable financial information and informing decision-making.
What’s more, in general, using accounting lettering software has a positive impact on overall business performance. It enables accounting teams to concentrate on higher value-added tasks, while enhancing the company’s competitiveness through better financial management. This type of software offers short-, medium- and long-term benefits for the company, in terms of efficiency, productivity and reliability. It’s therefore in every company’s interest to adopt accounting lettering software.
Has this article convinced you of the benefits of switching from manual to automatic lettering? Don’t hesitate to contact us for a personalized demonstration of our CashOnTime lettering solution.
