Why Automate Accounts Receivable?
Traditional accounts receivable processes rely heavily on manual tasks like data entry, paperwork, and reconciliation. This manual approach is time-consuming, prone to human error, and lacks visibility. Accounts receivable automation with the right software removes these pain points by streamlining routine tasks, digitizing paper-based records, and giving real-time insights into cash flow. This allows AR teams to spend less time on administrative busywork and more time on strategic activities like customer relationship building.
Automating Invoicing & Billing
One of the biggest time sinks in AR is manual invoice and statement generation. Automated invoice generation pulls data directly from accounting or ERP systems to produce invoices accurately and consistently with minimal effort. Customers can be assigned customizable billing schedules to streamline recurring invoices. Invoices can be sent electronically by email or integrated e-portals for faster delivery and easy access Accounts receivable automation billing also centralizes and tracks versions for audit compliance.
Streamlining Payment Processing
Managing customer payments across check, card, and ACH options is complex and error-prone if done manually. Payment automation eliminates re-keying errors by directly posting approved electronic payments to the accounting system in real-time. Accounts receivable automation also allows customers self-service options like online payment portals, mobile apps, and automated recurring payments for convenience. For checks, integrated imaging software captures remittance data during deposit to post payments accurately. This reduces days sales outstanding.
Improving Collections Management
Chasing late or non-paying customers is an inefficient use of resources. Collections automation streamlines follow-up by scheduling automated dunning notices, payment plan reminders, and escalation procedures. Dashboards provide visibility into accounts receivable aging and critical customers for prioritization. Integrated dialers and digital communications facilitate personalized outreach. Customizable workflows enforce consistent best practices across the team. Automated collections bring efficiency while maintaining a human touch through targeted outreach.
Digitizing Accounts Receivable Records
Mountains of paper invoices, statements, checks, and correspondence create inefficiency and compliance risks for AR departments. Digitization converts paper records into digital, searchable files stored securely in a document management system. Key data is extracted using optical character recognition for easy retrieval and reporting. Files can be securely accessed from anywhere, eliminating the need to store or manually locate physical records. This digitization provides a permanent audit trail, AR process visibility, and long-term data retention at a lower cost than physical storage.
Enhancing Customer Service
Customer service is enhanced through inquiry automation. Self-service portal access to statements, invoices, and account history helps customers find answers independently 24/7. Integrated knowledgebases and chatbots respond to basic questions instantly. For sensitive items, agents are promptly provided transaction context for faster, more informed assistance. Customizable email and texts for notifications streamline issue resolution. Automation gives customers flexibility while seamlessly routing exceptions to AR teams for personal resolution, strengthening relationships through a seamless experience.
Real-time Data Insights
Manual processes provide an outdated view of cash flow and accounts receivable performance. Automation extracts real-time data from in-flight transactions for up-to-the-minute reporting and analytics. Key performance metrics give transparency into cash flow, aging buckets, and customer payment behavior. Customizable graphics display data in intuitive, actionable dashboards. Drill-down capabilities explore root causes of issues. Powerful analytic tools conduct benchmarking and projections to strategically guide AR operations decisions. Accurate, accessible reporting delivers visibility critical to streamline processes and optimize cash flow.
Solutions for Accounts Receivable Automation
There are a variety of accounts receivable automation solutions tailored for different types and sizes of organizations. For smaller businesses, all-in-one software integrates invoicing, billing, payments, collections, and reporting right out of the box. Mid-sized companies can layer best-of-breed point solutions together as modular components that interface seamlessly. Larger enterprises leverage enterprise resource planning (ERP) platforms and accounts receivable modules optimized for complex global operations at scale. No matter the need, strategically selecting and implementing AR automation technology can greatly benefit any business through improved efficiency, customer service, and cash flow visibility.
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