NetSuite's Latest Release Improves Cash Flow with Smart Financials and Centralized Procurement
To quote a word of Andrew Jackson which stating that “Money is power” is correct. Money lets you pay the bills, hire more people and investing in an expandable growth. Without it, expect a business to only survive a short living due to source insufficiency.
However, possessing an abundant amount of funding source without good management will likely result in the same ending. While there are several tricks for improving cash flow, controlling costs and getting customers to pay their bills are at the top of the list. NetSuite 2021 Release 2 includes enhancements that make it easier to do both.
Accelerate Customer Payments
The new payment link feature release 2021.2 provides an easy way to pay invoices which not only makes it convenient to pay, but also increasing the probability of the bills being paid on time. The feature allows to include a "pay now" option on PDF and email invoices. Each invoice is assigned a dedicated URL, so there is no need for customers to register or log in to a user account before making a payment, saving them time and effort.
Payment link feature also supports multiple payment methods such as credit/debit card, ACH transfer or third-party payment provider (PayPal, etc). The payment can also be done full or partial, with a setting that is able to set minimum payment amount or percentage. A URL is uniquely generated to automatically connect customers to the right invoice. NetSuite 2021 Release 2 adds ACH payment options to SuiteCommerce MyAccount as well, which also helps you get paid faster.
Automate Transaction Matching
Effective cash management is critical for a successful business, but having funds deposited in your account is only part of the process. Those payments must also be matched to the appropriate invoices so they can be cleared from accounts receivable (AR). Doing this poorly affects your cash flow statement and balance sheet by showing higher receivables than you actually have.
If your business receives hundreds or thousands of payments every month, however, it can be difficult for accounting staff to apply cash receipts to open receivables in a timely manner. These delays not only hurt days sales outstanding and AR aging, they can also lead to mismatched or overlooked payments. NetSuite’s automated cash application and bank feeds feature avoid these problems by automatically matching customer payments with open invoices and updating the general ledger. This reduces the risk of error and helps ensure financial statements are accurate.
Consolidate Purchase Requests
NetSuite 2021 Release 1 introduced centralized purchasing for companies with subsidiaries. NetSuite 2021 Release 2 builds on this functionality, allowing companies to combine purchase requests from different subsidiaries to create a single purchase order. Consolidating multiple requisitions reduces the number of POs created, saving time and allowing purchasing staff to focus on other priorities. It also increases order volume, creating opportunities to save money by taking advantage of discounts or negotiating better pricing.
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