As a franchisor you implement many systems and processes to help your franchisees run their businesses smoothly. And while some of these systems help individual stores run service and product-specific functions, getting the accounts receivable and accounts payable systems right will improve payment efficiency across your entire network. This is particularly important in an uncertain economy where macroeconomic and microeconomic changes can jeopardise revenue growth. Keep reading to learn how enhancing your invoice management and payment infrastructure can accelerate productivity, boost cash flow and strengthen your franchise network.
You’ll work smarter, not harder
Some business leaders may be hesitant to embrace automation, fearing it will replace the human touch. However, when software is used to automate manual and disjointed systems and processes, it can improve the customer experience and strengthen supplier relationships. For instance, 90 per cent of employees feel burdened by repetitive tasks. Automating these tasks frees time to invest in more strategic work and provide better customer service. And the longer automated systems are in place, the better the hub of insightful business data becomes, which can be used to make stronger commercial decisions.
Two critical systems that will improve payment efficiency across your franchise network are accounts payable and accounts receivable solutions.
- Accounts payable automation: Automating the receivables process is designed to streamline the financial transactions between trading partners. It makes raising and managing invoices efficient and error-free, while reducing business costs, and also provides flexible payment terms and extended credit options.
- Accounts receivable automation: A tool that enhances the way businesses process and pay their invoices, reducing the number of human touchpoints (and therefore data entry errors) needed to pay invoices and lowers the overall invoice processing costs.
Improve the procure-to-pay processes and order-to-cash cycles
The procure-to-pay process and order-to-cash cycles are key processes head office and franchisees should align on to maintain strong cash flow. By integrating your purchasing and accounts payable systems, you gain greater control and visibility over how and when you should buy goods and services across your network. It provides important time-saving features such as the ability to access multiple suppliers in one place, better order accuracy, automated ordering and smart customisations that ensure only the right people are placing orders.
Similarly, using an accounts receivable system that integrates with other business systems, including procurement and accounts payable systems, allows you to better align your supplier and franchisee orders. Not only can this help your stores receive their orders and pay faster, but it also reduces instances where cash flow gaps arise due to inefficient and inaccurate procurement processes and an oversupply of ageing stock.
Accounts receivable and accounts payable software will make payments fast and secure
By using accounts receivable and accounts payable software that automates end-to-end processes from purchasing to payments, your franchise network’s finances will run from one platform. It allows for faster invoice processing, approvals, and payments. In fact, by using automation, businesses can reduce their invoice processing time by 74 per cent.
Users also have access to flexible payments, extended credit, and more choice in how and when they pay, they can manage invoice disputes in real-time and better align their cash inflows and outflows. This provides the ability to not only cover the business’s ongoing expenses but better plan for investments in growth. And with the long-term compounding benefits of real-time cash flow forecasting and analytics made possible with automated invoice management software, you’ll know exactly what levers to pull to boost growth.
Payment and user security is also enhanced. With features such as tokenisation that anonymise card payment data, and payment authorisation functionality that prohibits unauthorised users to set up, edit and approve invoice payments, it provides businesses with an added layer of security that is particularly important given the rising prevalence of cyber security attacks online.
Improve payment efficiency across your franchise network with Spenda
Payment efficiency is a critical factor to get right to strengthen cash flow across your franchise network. By using an integrated platform that makes invoice management and payments more streamlined and intuitive, you can set up the systems and processes that will motivate your franchisees to pay faster, which will get your suppliers paid faster too. This helps to strengthen trading relationships and helps to boost cash flow across entire franchise network.
Spenda’s Business Survival Guide: How to manage cash flow in uncertain times, outlines everything that franchise networks need to do to optimise their cash flow and grow. Click here to download your free copy.