What Is Accounts Receivable Automation And How Can It Help Your Business?
Most people will agree that paying bills on time is crucial. Nevertheless, many companies often face considerable hurdles when it comes to invoicing. Slow and lengthy delivery and non-compliance with customer invoicing requirements consume much of the accounts receivable team's time and directly impact cash flow. At Upflow, our main objective is to help businesses collect customer payments effortlessly. We've, therefore, developed an intelligent accounts receivable solution to help CFOs redefine and reimagine accounts receivable management. But let's look in more detail at AR automation and how it could benefit your business.
In a nutshell, AR automation is software that provides the ability to automate repetitive and time-consuming tasks usually performed by the accounts receivable team. This saves time and avoids errors that often occur in calculations and are primarily due to human error.
For your accounts receivable department to send out correct invoices consistently, it has to check the documents several times. In addition to checking items, prices and company data, there may also be customer requirements, e.g. specific delivery routes. Errors in this process can result in late payments, credited bills, and other disruptive and annoying issues.
AR automation enables businesses to optimise their client invoicing and payment processes. AR software aims to ensure that the company receives monies owed for customer goods or services. This type of software effectively streamlines the financial transactions between an organisation and its client base.
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AR automation solutions can facilitate the entire process, from workflows to sending invoices and scanning payments. As a result, end-to-end automation can significantly improve the efficiency of your business.
Here are six benefits of automating your accounts receivable:
We all know that software can automate a variety of regularly occurring activities. However, in some businesses, staff still need to perform these steps, leading to inefficiency and increasing the cost of payment processing. On the other hand, a company can save a lot of money on payment processing, get more done in less time, and hire fewer people for accounts receivable automation. Automating customer accounts with the latest software is a fantastic starting point for any organisation that wants to expand while freeing up personnel to focus on more important responsibilities.
Every business will always have a few slow payers, and automating accounts receivable is the best way to get those customers to pay faster. With automated systems, invoices can be issued to customers immediately, making them aware of what they owe and reducing the time it takes to get payment.
Moreover, AR software gives your customers an easy option to pay how they prefer. The transaction is automatically recorded and marked as paid when your customers pay an invoice. Your accounts receivable report is then updated automatically, helping you track outstanding invoices. Keeping track of your accounts receivable is essential if you want to keep your business afloat. Accounts receivable can be processed faster by sending invoices regularly, accepting cash and credit cards, and offering discounts for quick payment. Maintaining sufficient cash flow to pay bills and suppliers on time is a direct result of accounts receivable automation that makes it easier to collect money owed to you from your customers.
Manually managing customer accounts is a time-consuming and tedious process that typically falls to a select few people, wasting many hours that could be better spent elsewhere. AR automation speeds up the process of collecting overdue payments by automating accounts receivable. As a result, instead of wasting time on manual invoicing and other menial tasks, they can use that time for more fruitful endeavours and see more significant productivity gains than they would with a more laborious approach.
Easy access to customer data through customer consolidation is the key to better managing operations and providing superior service to customers. By integrating AR software and automating your accounts receivable, you can minimise the hassle and potential loss of customers when an organisation issues incorrect invoices to its customers. Additionally, a company can avoid having to terminate an employee due to an error in the books.
Not knowing how much customers or suppliers owe you could cost your business, so having up-to-date books is a must. Accounts receivable automation automatically and accurately tracks invoice and payment due dates and provides a multi-currency payment option so your customers can pay you how they prefer, thus enhancing your company's reputation for providing good customer service.
More and more countries have made e-invoicing mandatory and implemented systems like the Italian Italy Sistema di Interscambio (SDI). And since different countries have different requirements, invoicing customers can quickly become complex - especially when you have clients in many markets.
In these cases, automating outgoing electronic invoices will help you comply with local legislation. In addition, it gives you a single point of contact for all your global billing and enables you to receive payments across markets.
Here are some of the advantages of AR automation at a glance:
- Fewer Days Sales Outstanding (DSO)
- Reduced delivery costs
- Faster payments
- Improved cash flow
- More security
- Easier to comply with international sales invoicing regulations
- Increased accuracy
- Better employee and customer relationships
- Optimised workflows and improved security
Upflow's accounts receivable automation solution has everything you need to keep your business running smoothly. Learn more to see which package is right for your business.