KriyaGo - Blog #business efficiency

7 Biggest Account Payables Mistakes Your Business Must Avoid

Wed, 06 Apr 2022 12:00:00 -0400

Your business can incur endless problems if your accounts payable is not flawless. Post pandemic all kinds of businesses have suffered from the unpredictable scenarios coming their way. The situation has become extremely volatile and sensitive. When you are working in such unpredictable scenarios not having impeccable bookkeeping and accounting records can be a grave mistake.

From incurring losses to legal and tax issues at the year-end, the problems of bad accounting are endless. The core of accounting lies in keeping track of accounts payable. What you owe to people is directly dependent on the company's cash flow and money store. Gross mistakes in accounting can lead to unsolvable discrepancies resulting in major roadblocks in business.

Top Mistakes in Account Payables Your Business Needs to Avoid

1. Double payments and lost invoices

Physical paper and invoices are always a high risk affair. A human can simply misplace or lose it any given time. This puts you up for a lot of trouble. When you have no evidence to prove your accounts payable then releasing double payments can become a real thing. Your word of mouth literally holds no value if you lose your invoices and records of payment. This is exactly why automated invoices are important. Additionally they also help reduce costs substantially. Businesses save more than 29% by automating their invoice processing.

2. Manual invoices

Almost 53% of Account Payables believe that manual invoices are the biggest reason for data discrepancies and want to do away with it. Are you getting troubled with pilling up manual bills? You need an implementation consultant to get a better plan in place to tackle this. Vendors are of not much help in this because to date most of them send invoices on paper.

You need to shift to a technical account management system to battle this problem. That might seem like a lot of extra costs for you to do it in-house and get an additional team for it. But it is within KriyaGo’s area of expertise and we are here to provide you with the right tools for your growth.

3. Minor errors in data entry

When you manually input the data from physical invoices and print and share invoices on paper there remains a chance of data entry errors. Though it is an understandable human error, it will also give your vendors to hold you accountable for it. It will give them the chance to question the transparency of your work and eventually lose business. In the long run, this will spread a bad image about your brand and set you on a downward slope from thereon.

As per market research the usage of automated accounting reduces data entry discrepancies by 90%. Wondering if your business should finally get back office outsourcing services for accounting? Contact KriyaGo to learn more over an hour long free consultation call with our experts.

4. Not taking online payments

If you do not take online payments then data forging in payments can be a big concern. You will not have data evidence other than pieces of papers to prove your dues. Cheque based payments can also lead to inconveniences like no way to track payment status.

The major benefit of taking online payment is keeping track of all transactions and retrieving payment data in a click. Whenever there is doubt or data mismatch you can easily go back to tracking every single piece of transaction if your data is online. There are innumerable online payment methods these days and now you can work them to your advantage.

5. Poor record keeping and data tracking

Poor accounting system can have multi-layered effects on your business that can last longer than you would expect. From failing to meet up with tax compliances, monthly audit reports and increasing unretrievable payments, the problems are endless. You need efficient bookkeeping reconciliation services to overcome these.

If you get outsourced bookkeeping services you can always hold them accountable for all your records. If they take on your business as a client then they are responsible for all accounting problems as well. This helps in getting more transparency in business and better vendor and client relations.

Even Fortune 500 companies have lost more than $480 million due to poor record keeping. If you think you can get away from it so easily, you might want to rethink that.

6. Releasing payments before service is completed

Dealing with long-term vendors can lead to a lot of unsaid rules like trusting them with payments and deliveries. This is a very dangerous avenue to go down. Once you become complacent with delayed deliveries by vendors yet you release payments on time, it opens up doors for fraud. No matter how strong and old relations are with a vendor, you should have strict guidelines in place for all accounts payable. Yes, sometimes paying beforehand may entitle you for some discounts and benefits. But releasing payments before your rightful service is completed can result in a lot of pending work with huge loss of money.

7. Allowing unauthorized purchases without formal invoices

There are many companies who let unauthorized purchases go on without proper documents. You might trust one particular employee in keeping transparency in conducting this. There is hardly any guarantee that other employees and vendors will not steal from you. If you do not make formal invoices compulsory you can be held responsible for accounts payable that may not even exist. To stop such data forgery you need a proper automated system in place.

Major Takeaway

As a business owner when you avoid such gross accounts payable mistakes, you help stabilise your position in the market. Outsourcing and automating your accounting needs will benefit keep your life hassle free and let you focus on scaling the business to new heights.

KriyaGo’s team of experts and consultants can make the process easy and effortless for your team. We will together create your custom-built expert accounting system to reduce hassle and cut costs and improve profits.

Top Benefits of Expense Management Software

Thu, 04 Nov 2021 15:56:33 -0400

Gone are the days when real estate agencies relied on paper processes and spreadsheets to manage expenses. Today, most of them have switched to expense management software to streamline workflow and improve productivity.

Are you wondering if you should make a move too? Do you need more information to make your decision?

In this blog, we will explore the top benefits of expense management software. We will provide you with accurate data so that you can make an informed decision for your business.

So, let’s start with the most important advantage of using a digital solution to manage your expenses.

Real-time visibility into financial position

You are bound to meet difficulties if you track all your expenses manually. The challenges grow as you manage more properties, tenants, and employees.

The situation comes to a point where you lose visibility into your company spending. As a result, you also lose control over your budget and end up making inaccurate forecasts.

Expense management software can provide real-time visibility into your real estate expenses. You will be able to track expenses as they happen, complete with all information like payer name, amount, time, and more.

Therefore, you can stay updated on every cent that leaves your business.

According to Gartner, real-time visibility enables entrepreneurs to manage risks better. They can also predict disruptions and save up to 20% of costs.

Best of all, you can gain complete control over your spending.

High-quality financial data for accurate predictions

Inaccurate financial data can take a toll on your bottom line. Additionally, they can end up in your reporting and  create a false picture of your financial position.

For example, you can report more profit than actual if your employees miss out on entering some expenses. As a result, you will now have to pay more taxes while filing your returns.

On the other hand, your business will look less valuable if you underestimate your profit.

An expense management tool can come to the rescue and improve data accuracy. It can help real estate agencies eliminate human errors and duplicate entries.

In addition, you can verify and cross-check data seamlessly. Therefore, your organization can aim for transparency and establish accountability for each expense.

Ultimately, you will be able to make accurate forecasts for more success.

Improved operational efficiency

COVID-19 had a detrimental effect on most industries, including real estate. The world around, commercial spaces close down as governments announced months of lockdown. Returns from properties also began to decline, putting entrepreneurs under stress.

According to McKinsey, the unutilized enterprise value of real estate dipped by 25% in most sectors. In the case of lodging, it went down by 37%.

As a result, real estate businesses are searching for ways to boost operational efficiency. They are looking to cut costs and optimize expenses to derive the most value.

Expense management software can go a long way to improve your operational efficiency and reduce costs. You can track every expense and find out whether it’s justified or brings returns.

Additionally, you can automate processes and improve efficiency. You can also reduce your payment cycles and avoid paying late fees.

In the process, you may even  improve your revenues by 20% to 30%.

Conserve resources, money and time

Real estate businesses spend endless hours on manual data entry and reconciliation. They also need days to approve expenses, collect receipts, and create reports that still contain errors.

Additionally, you also need to pay wages for the time given by your employees.

An Expense management solution can help entrepreneurs save time, resources and money in multiple ways. The top contributor is automation that can help organizations save $16 trillion in annual salaries.

You can automate your data entry, receipt collection, and even reconciliations. Additionally, you can create reports with a few clicks and get to the bottom of every transaction in seconds.

According to research, 54% of the workforce believes they can conserve 240 hours every year through automation. Additionally, you can also save the wages you would otherwise pay for those hours.

Moreover, real estate agencies can automate approvals with expense management software. They can also speed up reimbursements and pay your vendors on time.

Best of all, you can use your free time to grow your business and boost productivity.

Generate valuable insights

Expense management software provides real-time visibility and control over your expenses. Additionally, you get a host of reports and analytics to make out your financial position.

Entrepreneurs can use the data to spot trends and patterns in their business spending. They can drive actionable insights and optimize spending to generate more value.

For example, your software can help you zero in on expenses that are no longer necessary. You might find you are paying for a service that you don’t use anymore.

Therefore, you can take action and reduce your spending or choose another service.

In addition, you can integrate your expense management software with your accounting solution. The process will help you streamline processes further and simplify reconciliation.

You can also get ready information when you want to close your books or maintain your accounts.

Implement your expense management software with KriyaGo

Real estate agencies need to work with a solid partner to set up and implement expense management solutions. KriyaGo works with reputed software vendors to offer entrepreneurs the best experience.

We can help you get started with leading products like SAP Concur, Yardi, or Procore. Our team can also provide expertise, train your team, and help automate your business processes.

Get in touch with us today to tell us your requirements. You can also contact us for a free consultation of 1 hour to discuss your needs.

Final thoughts

Expense management software is the need of the hour for real estate agencies. The solution can help them save time, cut costs, and improve operational efficiency. They can also improve data accuracy, remove duplicates, and automate most processes to boost productivity. Additionally, a digital tool can provide complete visibility into expenses and help optimize business spending.

Busting 9 Common Myths About ERP Integrations

Fri, 30 Jul 2021 13:00:11 -0400

ERP software is a fast-growing technology trend among companies. Nearly 50% of companies have implemented ERP to automate business processes. These systems have various benefits like better business efficiency, cost savings, and task management. Yet, some companies are skeptical about implementing ERP.

The main reason for this is the lack of knowledge of what ERP is and how it can help the company. Moreover, certain misconceptions restrict these companies from leveraging the benefits of ERP solutions.

To clear some of these doubts, we have busted the top myths related to ERP software and integrations.

1. ERP is not for small businesses

In today’s world, ERP systems are available for a variety of industries and processes. The objective of ERP is to reduce inefficiencies by automating as many business processes as possible. No matter the size, every business has to take care of financial, managerial, and sales processes. Depending on your requirements, ERP software can be customized and scaled.

There are specific systems meant for large companies while others are meant for smaller businesses. By implementing the right ERP system, every business can leverage its benefits, irrespective of the size. In fact, 65% of small businesses are already taking advantage of ERP systems.

2. ERP systems take a long time to implement

Earlier, complex systems required a long time for implementation. But cloud technology has made ERP systems easy both for implementation and learning. The systems have also been improved and a complete setup is possible within a reasonable time.

If you want to hire an internal team for setting up and operating ERP, it will take additional time to train them. Instead, you can choose an outsourcing company that can help you with ERP implementation and maintenance. They have pre-trained staff who can save your time and make the process more efficient.

3. ERPs only benefit the internal processes of the company

Most companies use ERP for accounting, inventory and distribution, and CRM. While ERP automates internal processes, it also benefits the company as a whole. It can influence employees, investors, and even customers. ERP systems that have integrated CRM make customer management easier. The processes are faster, accurate, and efficient, building the brand image of the company. This attracts both customers as well as investors.

By using data from ERP, you can also get insights into new business opportunities and increase your customer base. By making optimal use of the system, every member of the business is benefitted.

4. ERP systems are expensive

This myth might have some basis in the ERP systems of the past. But with more small businesses implementing ERP, the software has become more affordable to meet their demands. Since most systems are designed for specific business processes, companies only need to pay for what they choose. Even though high-end solutions may be expensive, they still have a high return on investment.

5. ERP and CRM software are the same

This is one of the biggest myths in this industry. While a business requires both ERP and CRM, both differ a lot in features and functions. ERP can automate a variety of functions like bookkeeping, accounting, sales, and management. CRM is a module of ERP which manages customer data for sales and services.

According to a survey by SelectHub, 33% of companies used ERP software for customer relationship management. Even though both are similar, using CRM as a replacement for ERP is not sufficient. What companies actually require is an integrated platform that handles multiple business functions including CRM.

6. ERP systems restrict the working process

ERP systems do not have a one-way process. Instead, they improve the pre-established business processes through automation. Though they introduce standardization and simplify most business aspects, they do not restrict the workflow. The users decide up to what extent ERP systems will be implemented. Nowadays, ERP systems have become so versatile that they can be customized for any type of business. For example, depending on your real estate portfolio, separate ERP systems can be developed for commercial and residential property management.

Many property managers do not like automation as they think it replaces their traditional processes. But ERP is not mere automation. It is the combination of traditional methods and technology.

7. Implementing ERP is a one-time process

Setting up the system might be a one-time process. But ERP software requires continuous updates according to the market trends. As technology changes, the company also adds new features to the software. If your business has grown or introduced a new product, your ERP software will also need the necessary features. Even if nothing has changed and your ERP software is doing well, the system requires regular check-ups to avoid any further challenges.

8. ERP gives immediate benefits

It is also wrong to assume that once you have installed ERP, you will immediately reap benefits. Even after implementation, ERP systems show visible results only after a few days or months. This is usually because employees take a while to get used to the new software. According to the functions and features, you might also need to streamline some business processes to suit the software.

9. All ERP outsourcing companies are the same

Not all ERP products and companies are the same. They differ in their features, functionality, and process. Some tools are better for accounting while others are good for CRM. The ideal ERP outsourcing company should be able to understand your requirements and suggest solutions accordingly. Do they have solutions for your industry? Are they updated? Do they provide after-sales support? As ERP implementation isn’t a one-time process, the vendor needs to provide you long-term support. By choosing the right outsourcing company, you can smoothly implement ERP for your business.

Implement the Right ERP Software with KriyaGo

KriyaGo helps clients automate their business processes by building the right ERP strategy for them. Whether it is software selection or integration, we can help you leverage the benefits of different platforms. With state-of-art software like Yardi, Procore, and SAP Concur, we have solutions for all property management functions. Our professional team can understand your requirements and provide unique insights through their extensive knowledge. Along with integration, we can also take care of support, data integration, and staff training.

For a complete ERP solution, reach out to KriyaGo!