AR Automation streamlines your AR process, ensures compliance with local invoicing laws, and allows you to send all customer bills online, independent of their digital capabilities. You create rules based on each customer’s needs so that you may fulfil requests automatically while keeping a totally digital operation. In addition to performing these important functions, the main reasons why account receivable automation is beneficial are:
Streamlining your processes while increasing security
Your a/r management staff may focus on addressing overdue payments or projecting cash flow by minimizing the time required on each invoice and having the overall workflow more effective. In other words, by relieving employees of the most time-consuming activities, they may focus on making sure the company’s success.
Comply with applicable laws with ease
E-invoicing is becoming legislated in an increasing number of nations, with platforms like Italy’s SDI using it. It rapidly becomes complicated, particularly if you have consumers in multiple marketplaces because each country has different standards. In these situations, AR Automation assists you in effortlessly complying with relevant regulations. It allows you to get paid throughout markets and provides you with a point of contact for all of your international invoicing.
Improve client service and reliability
Increasing the reliability of your invoicing also increases consumer trust. Companies who fail to deliver the correct documentation on a regular basis appear unprofessional and incur extra labor. It doesn’t matter which form your client likes or how digitally advanced they seem to be with AR Automation. Even if customers still want files sent on paper, you treat them the same manner on your end.
Printing and email services with automatic sorting and routing make this possible. Instead of the time-consuming chore of sorting documents into email, paper, and electronic invoicing, your financial department can focus on more important responsibilities.
Strategy options for accounts receivable automation
Choosing the right strategy for your business can make for smooth sailing in the financial department. Here are some strategies to future proof your collections process through accounts receivable automation.
Get your finance department involved
While selecting whether to use automation tools is a large choice, your accounting staff should address the question of which solution to buy and what capabilities are required. They know the details of your accounting procedures, so they’re the perfect people to ask about the numerous pain issues your firm is currently experiencing and how to best address them.
Encourage your staff to explain and reconcile processes as well. A typical AR process would comprise several steps related to sales and distribution (client interaction), invoicing (invoice sending), payment collection, and reconciliation. Creating a system of your operations will help you find out what you can automate and optimize, as well as what stages you can remove to minimize payment barriers and improve billing interactions.
AR Collect, for example, offers one-click reconciliation among your payment gateways and accounting systems as part of its invoicing logic, allowing you to synchronize everything and fully remove human workers.
Assure that the tech infrastructure is seamlessly integrated
Almost every firm has payment systems and accounting software in operation before recognizing that the capability is restricted in some areas and that in order to reach hypergrowth, they need to upgrade to a more complete billing system.
Perhaps when you decide to use such a product, the first thing you should ask is, “Would this solution integrate easily into my available technology pile?” If you respond no to this question, switching to a different tool may prove to be more time-consuming and costly than you anticipated, making the transition a burden instead of a solution.
Provide incentives for early payments
Create payment terms that incorporate early settlement rewards for customers. When you can manage it, provide discounts for early or advance payments; you may also reward consumers who accept yearly payment arrangements. Even big discounts may be desirable to obtain no payment in certain instances. This agreement will profit both you and your consumers.
To conclude
Receivables management is a demanding task. It entails ensuring that your customers pay their bill on time with the least amount of work on your behalf, while minimizing your gathering expenses and, of course, without harming your clients’ satisfaction. With the help of effective automation, the same procedure may be kept easy and effective. What you require is a dependable billing solution that isolates all billing difficulties and allows you to concentrate on what really matters.