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Managing business finances is a massive yet slow-moving task for finance teams. Simply consider the reconciliation of bank statements with your company books for every single accounting entry in a given day. In other words, tracking collections & payouts to know the cash flowing in & out of the business on a daily basis.
You have to maintain separate spreadsheets for account receivables, account payables, bookkeeping reports such as cash flow, P&L, general ledger, etc., and yes, definitely one for reconciliation too.
Isn’t it tedious? Now imagine doing this for 365 days a year! 🤯
Let’s be honest – the number of tools that you have to use to assess the financial health of your business can wear you out in no time.
So tell us – is your team still handling finances the OLD, i.e., manual way? Well then, we’ve got something that’s way smarter & quicker for your finance team.
But before that, let’s understand what are the exact challenges with the current finance & accounting options that are out there –
Why finance teams need to reconsider their current options
1) Manual accounting software
For accounting purposes, you must be using software such as Tally or Marg. Although your team is familiar with these platforms, they end up spending a whole lot of time on manual entry for each transaction. Not to mention, each transaction must be mapped to the bank statements.
(2) Tedious expense management
Expense management can get baffling when you have to categorize expenses – especially when the same tool is used by different departments.
Say for example, your HR team uses LinkedIn for recruitment while your Sales team uses it to generate leads. Now when you get your monthly bank statement, it will only show that LinkedIn has charged you without mentioning whether the cost belonged to your HR team or Sales team. 🤷♀️
(3) Difficult to track pending and half-credited payments
Tracking due payments is a huge task. Firstly, you need to identify customers who are yet to pay. For this, you have to go through all your accounts & bank statements and validate the outstanding payments. Then, follow up with customers who haven’t paid you yet.
To make it worse, some customers pay you only half the due amount on the due date. Recording half-credited payments & following up on the balance amount on the new due date is no cakewalk.
(4) Difficult to obtain a real-time overview of receivables & payables
You might be handling business finances single-handedly or even have a finance team. Either way, it’s hard to get an overview of receivables that are due & payables that need to be sent out on time almost instantly.
(5) Separate invoicing software & accounting software
For businesses that use invoices from time to time, it helps to have a platform that automates & integrates some bit of your invoicing.
For eg: Most popular accounting software don’t come with in-built payment links that allow vendors to pay then & there. And let’s not forget the added hassle to ensure all invoices are GST compliant.
(6) Difficult to reconcile cash expenses
Cash expenses are difficult to track as there is not a single entry in the bank statements. This makes it hard for finance teams to validate & reconcile the particular expense.
(7) Managing multiple bank accounts
It is very likely for businesses to have more than one or two bank accounts in an attempt to simplify tracking. But managing these multiple accounts for tracking purposes itself is a time-consuming & stressful task.
Why you need to manage business finances the Open way
1) Banking integrated with accounting
Open’s online bank account is the ONLY account that combines banking & accounting in one place. In other words, as payments are collected & payouts are made, your accounting gets automated.
Imagine every entry being automatically recorded, just like that. 😎
2) Expense management sorted
Categorize employee expenses easily irrespective of how the payment was made, when, or by whom, along with automated accounting.
Assign Open’s virtual cards to teammates for their online expenses and set limits. This way, you can easily track expenses team-wise or even employee-wise.
Expense cards can be assigned to teammates who step out of the office & need to make card swipes. With every swipe, employees get a WhatsApp notification to upload their receipts & the expense is filed just like that.
Cash payments can also be recorded by uploading an image of the payment receipt.
You can then experience a smooth & quick expense report filing. AND manage approval flows & reimbursements from ONE dashboard.
3) Track outstanding payments in seconds
Open’s online bank account lets you track payments customer-wise or transaction-wise in just a few seconds. You can also automate reminder emails to collect due payments.
4) Smart aging analysis
With Open, you get complete visibility of future collections & payouts via an aging analysis report. Know the Days Total Outstanding & an overview of your aged receivables & payables with date range as shown below.
5) Integrated invoicing & accounting platform
In just 2 minutes, you can create & send a GST-compliant invoice from your Open dashboard. Once sent, your vendor can make the payment via multiple payment options such as debit & credit card, UPI, etc.
And once the payment is received, don’t worry about making an entry in your accounts. All your collections are auto-reconciled & recorded in your accounts as payment received.
6) Easy reconciliation of cash expenses
For cash expenses that your business incurs, simply go to the Open dashboard – add the cash expense along with the relevant category.
And your expense is recorded & auto-reconciled – quickly & seamlessly!
7) Manage multiple bank accounts in ONE place
With Open, you can link multiple bank accounts that you might be using for your business in ONE place. By doing so, you get a complete overview of all your cash flows from just a single dashboard.
Just sign up & make your existing bank accounts smarter.
Level up your business finances with Open’s online bank account
Your finance team deserves the best – simplify their lives by managing business finances with Open.
They will now finally have the time to focus on business goals.
Want to know more about how Open’s online bank account can help you? Read our blog on why your business needs it today.
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