5 ways digital document receipt can improve companies' liquidity

Digitalization brings with it one thing in particular: increases in efficiency. With digital tools, companies can reduce time and effort, which, in the best case, leads directly to increased profits through cost savings.

Although it may seem obvious, digital document receipt can also significantly contribute to increasing efficiency in companies. From a financial perspective, this even makes it possible to improve liquidity and cash flow. We'll show you ways to do this.

Better overview 🔍

Anyone who receives documents such as incoming invoices digitally thus escapes the risk of overlooking them in a confusing chaos of notes.

With suitable software, documents can be recorded and categorized online. This allows you to assign all invoices directly to the appropriate transactions and thus always keep track of income, expenditure and outstanding amounts.

With this payment reconciliation, which many programs offer you, you can calculate your cash flow more precisely and thus create a more reliable liquidity plan.

Automatability of processes 🤖

In the areas of accounting and accounting, digital document receipt is the starting point for subsequent efficiency improvements.

If you work with digital incoming documents, you can easily integrate them into processes and even automate them. With software solutions in the area of accounting, payment transactions can be automatically recorded and documents correctly archived, among other things.

The result: Companies save time and manual work, which is directly reflected in reduced costs and thus has a positive effect on their company's liquidity.

Depending on the program used, anomalies within certain metrics can also be automatically detected. The software then sends you a notification so that you can take a closer look at the affected key figures and prevent a possible liquidity bottleneck.

Faster responsiveness ⚡

Digital receipt of documents offers your company one thing in particular: flexibility. With the ability to receive and view receipts directly from anywhere, you benefit from faster responsiveness to incoming payment obligations.

The rapid payment of receivables makes your future liquidity much more predictable. If you want to postpone payment obligations into the future so as not to reduce the current cash flow, you can also schedule this flexibly and reliably with programs without forgetting payments and risking reminder fees.

Timeliness of finance KPIs 📊

Manually transferring transaction figures to liquidity planning is time-consuming and therefore necessarily leads to a certain time delay.

As a result of automation and rapid responsiveness, digital document receipt offers data reliability over time. Since amounts in incoming invoices can be automatically read out and transferred to your accounting software in real time, this allows you to work with current data. The company thus benefits from precise and timely cost control and predictability.

Extension of technical functionalities ➕

Anyone who wants to further expand the digital planning of their finances often has the option of connecting suitable add-ons thanks to digital document receipt and software solutions.

These software extensions are designed for specific functionalities and offer users various features — for example for professional cash flow management and further liquidity forecasts.

Conclusion: Digital input documents as a liquidity catalyst

As this article was able to show, the effects of digital document receipt are more far-reaching than might initially have been assumed. Liquidity — i.e. a company's long-term solvency — is also benefiting from the shift towards a paperless office.

While digital documents serve as a starting point for automatable processes, companies can use accounting programs such as Billomat to ensure better clarity, faster responsiveness and real-time timeliness of their financial data.

💡TIP! Use the free integration now to connect CAYA and Billomat's accounting tool and see for yourself the effects of digital document receipt on liquidity planning and cash flow management.

About the author:
Billomat offers users cloud-based accounting and invoicing software that allows companies to manage their invoicing processes, from offers to invoices to reminders, simply, quickly and from anywhere. Practical automation saves you manual work steps and therefore valuable time and resources. Find out more at https://www.billomat.com/ or directly via support@billomat.com.

Also interesting: How SMEs work with digital accounting in a legally secure and more efficient way. Christian Heimrich, Director of Business Operations, GetMyInvoices.

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By the way 💡: Would you like to find out how you can do budget planning as an SME and draw up a plan for it? Our article shows it to you.

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