Making a financial forecast is important to set the direction of your business. Preparing a financial plan not only provides insight into the current situation, it also allows you to predict future business results. To prepare a financial budget, you not only want to know what you can expect in terms of revenue, you naturally also want to know what costs you need to take into account. To identify these costs, it is important that your financial records are in good order. After all, you always want to have up-to-date figures available in order to make the most accurate forecast possible.
Optimize your processes
Apart from the wage bill, most operating expenses arise from the purchase of goods or services. Many times, these costs are recorded by booking purchase invoices. The correct and timely booking of these therefore has a great impact on the budget.
In many SME organizations, however, the processing of purchase invoices is not yet optimally set up. As a result, employees spend a lot of time booking, checking and circulating the documents. All this time the costs are not transparent and in some cases late payment of invoices even results in extra costs. Moreover, manual data entry is an error-prone process, where a misplaced comma can give a significantly distorted picture of the actual situation! Therefore, more and more companies are looking for ways to digitize these processes.
By automating the booking, checking and approval of your purchase invoices, you have the assurance that costs are recorded in your accounting records as soon as they arrive. The invoices are also presented digitally for approval and there is always insight into the status of the payment. This eliminates delays and avoids unnecessary (collection) costs.
If you want to have more influence on corporate spending as a company, you can move to an automated purchase 2 pay process, or an automated purchasing process, combined with automated invoice processing and approval. By automating the purchasing process from the request, for example, you can work on the basis of budgets and orders are placed only with suppliers with whom the best price agreements have been made. You can also benefit from purchasing advantages by bundling orders in this way, without creating extra work for the buyer. When the invoice arrives, it is automatically checked against the previously placed order and, if there is a 100% match, can be booked and released for payment immediately.
So automating the procurement process and the processing and approval of purchase invoices not only saves you a lot of time but also gives you insight into your current and future expenses.
More information about creating an accurate financial budget?