Trying to keep track of credit requests, paperwork, and reconciliation is a real headache for many in the retail industry. Especially for liquor retailers, regulations require them to pay invoices to vendors by sending credit requests. This usually results in protracted situations that slows down work time and leads to possible errors on the retailer and vendor sides.
As a retailer or vendor, you're probably getting tired of dealing with these scenarios, particularly if you're still using a paper-based system for payments. The trouble with many credit card invoices is they're still sent out in paper form. Dealing with paper documents requires having to file them away where they're easy to lose.
Keep in mind since you and the vendor receive separate invoices, it can lead to major discrepancies if you both have different figures.
The way to solve this and other credit tracking is through next-generation automated systems. Here's three quick ways to get up to speed on NGR automated credit tracking in today's best management software platforms.
You have far too much to lose sticking with stacks of paper bills dumped on your desk every day. Eliminate all papers with an automated system available in your management software. Through automation, credit processing takes place through one centralized database.
No more do you have to worry about waiting for a credit invoice and having to wait longer for processing to take place on the vendor's side. Even more convenient is that with a centralized system, your vendor can look in on the credit invoice so they don't have to deal with paper either.
Since cash flow issues are probably an ongoing concern for both of you, delayed payment processing on credit won't affect your finances. Using e-invoices in general helps you finally eliminate errors that take too long to correct through emails and phone calls.
A major problem with paying by credit to your vendor is you sometimes overpay when there's a discrepancy compared to the real bill. You may not even know you overpaid on the credit bill until hearing from the vendor the invoice didn't match their records.
Overpaying could put your cash flow in jeopardy when you need cash on hand for emergencies. If you'll eventually get the money back, what would you do in the meantime? What's troubling is you'd have to wait for the reimbursement until the vendor processes the payment. This could take weeks before you get your money back.
Automated credit tracking lets you and the vendor process the credit bill at the same time so you don't have to wait on each other. Through the cloud, all credit data has instant accessibility anywhere you have an Internet connection. It means you can take care of credit issues while traveling and not have to make a special visit to the office.
The single user interface mentioned above also comes in handy for reconciliation. Any variances in the credit bill get scoped out automatically so you and the vendor don't have to take time to amend mistakes. You want software that can track credit requests automatically until you get a resolution.
Variance tolerance settings are a newer feature letting you track discrepancies mattering most to your budget. Now you can look out for mistakes and catch them before they cause severe financial damage. Without this tool, you could end up in a financial situation you can't immediately repair, creating a need for loans to keep yourself above water.