Integrating Collections Automation with Overall Financial Management Systems
It is difficult to imagine modern business and finance teams without all the tools and software that come with it: CRMs, ERPs, Payment Software, etc.
The accounting department, specifically Collections, is no exception. Financial software, like Tesorio, can provide a number of advantages, from increasing accuracy and effectiveness by automating routine tasks to enhancing the customer experience by sending personalized reminders.
However, when these systems are disconnected and operate in isolation, they may become a problem rather than an asset.
In this article, we’ll look at some of the challenges that are associated with disconnected financial data and best practices for integrating your different services, specifically focusing on Tesorio’s integration capabilities.
Challenges of Disconnected Financial Data
Many finance teams face difficulties making decisions due to a lack of operationally reliable information and consolidated reporting. You have to decide intuitively or based on data from previous periods.
The most probable reason behind such a situation is simple: the fragmentation of financial data. Many organizations use different platforms and tools, thereby creating specific difficulties. Here are some of them:
Difficulty in Real-Time Decision-Making
The first and most apparent difficulty of disparate and fragmented data is the impossibility of making operational decisions. As noted, many companies use different platforms and tools without a single database.
For example, a company may store payment details in an ERP system like NetSuite. However, the same company may keep communication settings or dispute records in the CRM.
Still, in some cases, access to information must be immediate. Sometimes, unfortunately, this is not possible. As a result, the lack of integration leads to delays in decision-making, negatively affecting the productivity and efficiency of the organization.
Increased Chances of Errors
The second challenge is the high probability of errors. It occurs predominantly in manual data transfers or reconciliations. This can lead to erroneous decisions or a delay in taking preventive measures that can minimize or eliminate negative factors’ impact.
Let’s say a sales rep updates a customer’s billing address in CRM after a move. However, this change is not reflected in the ERP system. In that case, invoices may still be sent to the old address, leading to payment delays.
Time-Consuming Manual Reconciliations
Time-consuming manual reconciliations between different platforms or systems are a common source of frustration for many businesses, especially those with disconnected or legacy systems. Among the obstacles and pitfalls associated with manual reconciliations are:
Time-Intensive: Manual reconciliation can be a time-consuming endeavor. Staff members may be required to filter through vast quantities of data, match records, and identify inconsistencies.
Costly Corrections: Errors discovered after the fact can lead to additional expenses in the form of financial adjustments, time spent rectifying errors, or negative customer experiences.
Operational Inefficiencies: Employees occupied with tedious reconciliation tasks are unable to concentrate on higher-value activities, such as data analysis, to gain business insights or enhance the customer experience.
Manual reconciliations can be an obstacle in the modern business environment, where decisions must be made quickly and based on accurate data. Adopting technological solutions to automate and streamline procedures is essential for overcoming these obstacles.
Lack of Unified View
Another significant challenge is the lack of a single point of view— greatly complicating a holistic understanding of clients’ financial situations. For example, by looking at the database, a sales team using CRM can determine that a customer frequently purchases a particular product.
However, suppose they do not analyze the customer’s payment history in the ERP system. In that case, they may not realize they often pay bills late.
Such an elementary lack of information leads to missed opportunities. Let’s say some customers may not receive discounts for early payment, reducing the possibility of future purchases.
Supercharging Your ERP Investment with Tesorio
Traditional ERPs struggle with limitations in cash flow foresight and flexibility. Here are some of these limitations:
No cash flow insights in real-time: While traditional ERP systems focus on financial performance, they often fail to offer timely cash flow updates. With possible financial risks in mind, decision-making is slowed down.
Inefficient handling of high transaction volumes: The more transactions occur, the slower and less efficient traditional ERPs can become. The inability to handle bulk data hampers workplace efficiency.
Lack of flexibility in adapting to changing business needs: Practical applications underscore how new technologies shape habits, with accounting being no exception. This is why traditional ERP systems are often rigid. Due to this limitation, they struggle to adjust to novel processes or evolving demands.
Integration difficulty with other systems: The integration of ERPs with other applications or platforms normally entails a labor-intensive and difficult custom development effort.
To overcome these limitations, Tesorio complements ERPs by aggregating cash data from various sources for a holistic view of businesses’ finances.
Integration with NetSuite, as well as other ERPs, increases Tesorio’s capability of providing improved financial insight and enhanced operation effectiveness.
Thus, NetSuite integration entails nine areas: subsidiaries, chart of accounts, exchange rates, real-time contact syncing, accounts receivable, notes, and real-time message syncing, along with customized fields regarding customers among invoices.
Importantly, Tesoro’s integration capabilities also offer the full suite of Sage Intacct, Zuora, Workday, and QuickBooks Online. These can all work together to provide a more comprehensive blend of data points, including real-time synchronization with custom fields and improved communication.
For example, Sage Intacct integration improves AR and collection efficiency. Integration with Zuora synchronizes subscriptions, payments, and contacts, while scheduling functions are also coordinated.
Regarding QuickBooks Online, using the official Intuit APIs makes financial management easier, as customers can be synchronized with accounts, customers, and invoice schedules. At the same time, payments and credit memos are coordinated.
Unlocking the Power of CRMs with Tesorio
Integrating CRMs and Tesorio, customer relationship management proves to be a powerful tool. Information that businesses have access to can be more customized, leading to more targeted efforts for collection as well as deeper connections with their customers.
Integrating with the top CRM solutions like Salesforce, where Tesorio can bridge the gap between sales and finance, brings about a harmonious environment in business operations.
While Salesforce takes care of interaction with customers and handling sales management affairs, Tesorio adds another critical layer of financial insights. Combining data from both systems gives an improved understanding of payment patterns and other financial exposures for businesses.
Moreover, the integration between Tesorio and Salesforce empowers finance teams to make informed decisions on collections strategies, prioritize high-risk accounts, and optimize cash flow forecasting.
Generally, real-time insight into customer payment history and communication records helps improve the process of gathering collected funds.
Streamlining Collections with Integrated Payment Solutions
By integrating Tesorio payment solutions, businesses can greatly simplify their collection processes. Through this integration, they will effectively optimize their cash flow management towards more efficiency and accuracy.
For example, Tesorio’s partnership with Stripe leads to smooth transaction processing. This partnership allows a streamlined connection between two software products, giving users more efficient means of monitoring as well as directing activities relating to payments.
In addition, integrating Tesorio makes it possible to embed payment links, which has many benefits.
Tesorio also offers customizable payment portals that integrate its logo and branding elements. Such consistency in customer interactions augments trust and further strengthens the image of the brand.
Not to be left behind, integration with Stripe facilitates seamless reconciliation of payment data, reducing manual tasks, and enhancing cash flow efficiency.
Ensuring Security with Single Sign-On (SSO)
One of Tesorio’s primary focuses is security, guaranteeing a protected atmosphere for financial activities. Still, for robust security, SSO integration is an essential aspect.
SSO integration streamlines the process, granting users greater protection and ease. By implementing SSO, users can access a multitude of applications and systems through a singular set of login details.
Unified login credentials eradicate the need to recall various usernames and passwords, mitigating the likelihood of vulnerabilities stemming from weak passwords or duplicate entries.
With Tesorio’s SSO integrations, such as Azure, Google, Okta, and OneLogin, users can leverage their existing authentication infrastructure to securely access the platform.
Azure Active Directory (Azure AD) Integration
Tesorio can be integrated with Azure AD to enable organizations to centrally manage user identities and implement access control.
This integration enhances the user management process by ensuring that the access granted meets the organization’s policies set within Azure AD.
Google Workspace Integration
Integration with Google Workspace allows Tesorio users to log in using their Google accounts.
This avoids unnecessary issues when it comes to logging in as well as increasing security factors since Google handles the authentication process.
Okta integration allows Tesorio to use Okta as its identity provider. Users would log in through the Okta portal and authenticate and authorize access to Tesorio based on predefined policies.
Similarly, Okta acts as the identity provider for Tesorio. Users would authenticate through OneLogin, and the latter would manage user access to Tesorio following predefined rules.
This integration helps in centralizing the management of users as well as making things much simpler during authentication processes.
So, using SSO throughout the Tesorio login process allows an organization to enforce stronger security policies such as password complexity requirements or even two-factor authentication across all applications that use SSO.
The Bottom Line
Integrating collections automation with overall financial management systems has the transformative potential to revolutionize how a business approaches its cash flow.
Organizations with a well-connected financial management system have the opportunity to improve efficiency and derive valuable insights, among other things, through linking tools like ERPs, CRMs, payment solutions, and security systems.
Tesorio has always specialized in A/R automation but is aimed at integrating with your suite of other tools. See for yourself how bringing AI to your finance team can transform your collections processes, optimize cash flow management, and drive overall financial success! Book a demo to speak with a cash flow expert today.