Minimize Errors, Maximize Accuracy With Our Accounts Payable and Receivable Management Services

The Whitlock Co. provides expert guidance to help businesses make informed decisions about their financial health. One thing we do is optimize accounts payable and receivable management and make them more efficient. Our reports can lead you to informed decisions as you move your company forward.

When our team manages accounts payable and receivable for your business, we can provide a strategic approach to financial planning with precise and accurate reports. The goal is to optimize cash flow, improve financial control, and enhance the overall operational effectiveness of accounts payable and receivable functions. Having the right software is only part of the story. Knowing what your reports mean is the other part.

Keep reading to learn more about the core functions of our accounts payable and receivable management as a financial tool that can help your company grow.

Efficient Invoice Processing and Payment

Streamlining your accounts payable involves efficient invoice processing. The Whitlock Co. will take a personalized look at your company's software stack to identify opportunities for boosting efficiency and streamlining your processes. Does it perform the functions you need it to? Are you employing this functionality as it is intended? Are there ways to improve this process? Can your current system give you the insights needed for better decision-making? We can take a strategic look at your invoices as a whole to see how your business can optimize your invoicing to get the best results.

Why Streamline Invoicing?

Technology continues to evolve rapidly. AI-driven software can help you implement advanced platforms that reduce errors and derive insights from the data. Like payroll, paying invoices is a fairly straightforward process, and it may be an afterthought in the larger picture of your business growth. But are you getting the most out of your invoicing system?

Data Analytics

The Whitlock Co. can show you how data analytics can identify patterns and inefficiencies in the invoicing process. By analyzing payment histories and vendor behaviors, you can pinpoint payment trends and take proactive measures to lessen their impact. For instance, a company might determine that the costs of supplies or raw materials have increased from a certain segment of vendors. Addressing this issue can improve your bottom line by catching patterns early before they start eating into your profits even more.

With so many touchpoints, it can be difficult to determine how to manage your company’s inflow and outflow of cash. Analytics tools can help you maximize your cash flow with invoicing.

Payment Efficiency

Another effective way to optimize your invoicing is by streamlining your payment processing and approval workflows. This empowers your team to settle invoices quickly and easily, saving valuable time and resources. Consider evaluating which vendors align best with your preferred payment methods and identify those that consistently deliver efficient processing. Additionally, set up automated alerts to proactively manage late payments and ensure smooth cash flow.

Accurate Receivables Management

On the accounts receivable side, The Whitlock Co. helps your company optimize cash collection. We’ll show you how software monitors outstanding receivables, follows up on overdue accounts, and manages collections processes.

Much like invoicing, data analytics tools allow companies to monitor key performance indicators (KPIs) such as days sales outstanding (DSO) and identify patterns in payment behaviors, enabling proactive strategies to address potential issues.

For example, your AR staff spends 10 hours a month on collections management. We can show you how to set up a system that manages collections from start to finish. You can set a time to send messages to overdue clients, either through email or text, and create alerts that require escalation to a phone call or possibly suspending a client’s order.

Artificial Intelligence (AI) and Receivables

Consider AI-driven tools to help with forecasting. The right platform provides better visibility into customer risk profiles, allowing your team to offer flexible payment terms and reduce delinquency rates when appropriate. For example, the software for your needs should perform various workflows and integrate with popular ledger systems to reduce the time your staff spends on receivables tasks every month.

Let’s say your AI software shows that one particular product line steadily reduces profits over several months. The reason is that 10 customers show lower order numbers. Your AR staff can reach out to these customers to determine why they are ordering fewer of your products.

Comprehensive Financial Reporting

The Whitlock Co. provides detailed financial reporting on both accounts payable and receivable on a monthly, quarterly, and yearly basis so you can have a detailed look at the current state of your company's finances. This includes regular reports on cash flow, aging reports, and payment histories. These reports offer valuable insights into your financial status and help you make informed decisions about your business’s financial strategies while making sure your invoicing software is robust.

Cash Flow Analysis

Cash flow statements detail the inflows and outflows of cash within your company over a specific period. The reports we provide for you will categorize cash movements into operating, investing, and financing activities, offering a comprehensive view of how your company generates and utilizes cash.

For instance, operating activities reflect cash transactions related to core business operations. Investing activities encompass cash used for or generated from investments in assets. Financing activities include cash movements related to debt, equity, and dividends. Analyzing these components helps you assess liquidity, solvency, and overall financial performance for a month, quarter, or year.​

Let’s say these reports show a sudden decrease in cash reserves despite reporting profits over one quarter. Upon reviewing a cash flow statement, you might discover substantial cash outflows toward new equipment purchases as part of your company’s investing activities. This insight may highlight the need for better alignment between capital expenditures and cash management strategies. You might decide to adjust investment plans to maintain adequate liquidity to have more cash on hand.​

Aging Reports

Aging reports, particularly for accounts receivable, categorize outstanding invoices based on the length of time they have remained unpaid. These reports typically segment receivables into current, 30 to 60 days overdue, 60 to 90 days overdue, and beyond.

This helps companies identify delinquent accounts, assess the effectiveness of their credit policies, and determine the likelihood of collecting overdue payments. The goal here is to minimize bad debt expenses.​

For example, your business might see trends toward more accounts having overdue payments in the 60 to 90 day window.  Are the customers dissatisfied with the product or service they receive? Are payment practices not efficient enough? Teams can initiate targeted communication with these clients to address concerns and renegotiate payment terms to improve cash flow.​

Payment Histories

Payment histories provide a record of a company's payments to suppliers and creditors over time. Can your company meet its financial obligations? You can also measure how good the credit terms are with your invoices compared to your inflows of cash. Consistent, timely payments enhance a company's creditworthiness, while frequent delays may signal financial distress or operational inefficiencies.​

For example, late payments to vendors can strain those relationships. You might find that internal inefficiencies cause payment delays. Addressing these issues can improve payment timeliness, restore supplier trust, and secure better credit terms, ultimately improving the supply chain stability.

Accounts Payable and Receivable Management Services From The Whitlock Co.

The Whitlock Co. can set up your company for success with our accounts payable and receivable management services. Contact The Whitlock Co. to request a consultation and see what we can do for you.