Recession-proof your Business with AR Automation
During recessions, businesses face economic downturns that can negatively impact their operations. However, by embracing automation, companies can navigate these challenging times and emerge even stronger.
Recessions are a part of the natural business cycle. A recession is when economic activity declines significantly, reducing gross domestic product (GDP), real income, employment, industrial production, and wholesale-retail sales. Recessions end when the economy returns to a state of expansion, but it's difficult to predict when.
Most businesses are negatively affected by recessions, but there are things you can do to ensure your business comes through even stronger. Successful companies adapt to challenging environments developing skills and processes that help them survive the slow time. This makes them even more efficient and profitable when the economy recovers.
One of the most important processes you can adopt to increase your efficiency is automation. Here's how it can help your business navigate and survive recession times.
What does automation do for your business?
Automating core accounting functions eliminates the risk of manual error and shrinks your DSO, providing a stronger bottom line. Software like NetSuite and Paystand work together to automate crucial tasks in the billing and collections process, eliminating time-consuming, manual tasks. With an automated, faster, and more reliable billing and collections process, your accounts receivable becomes more efficient, reducing your DSO.
With NetSuite, your finance team can automatically post transactions to general and AR ledgers with accurate tax calculations for each invoice, allowing for fast and precise tax processing and billing. NetSuite automates historically manual AR processes, empowering finance teams to create and send digital invoices and offering multiple payment options for simplified payments.
What Should You Automate?
While the AR process can be slightly different for each company, there are five tasks every company should always automate.
1. Creation and Delivery of Invoices
There is no need for manual creation and delivery of invoices. It is repetitive, boring, and the biggest area of human input error. Automation helps you remove human error and streamline the invoice process to completion in only a few clicks.
Reconciliation manages the number of unpaid customer billings to the accounts receivable total. This is an essential procedure because it ensures your company isn't getting short-changed and that all outstanding invoices and debts are paid in full. Automation quickly searches the ledger and invoice records and what has or hasn't been paid.
3. Credit Management
Your business should have a plan to track and guard against late payments or defaults. Without automation, some businesses find evaluating and tracking their customers' credit challenging. Automation streamlines that process and can automatically send customers reminders of past-due payments and outstanding balances.
4. Early Payment Discounts
Special discounts for early payments can be hard to track because each vendor and customer can have different rates. Automation removes the burden for the finance team to remember and implement any special pricing, ensuring all discounts are processed accurately, which raises customer satisfaction and makes sure you get paid the amount you deserve.
5. Tracking Payments Due
Tracking payments due lets your business know which invoices have and have not been paid. Manual management of tracking payments due takes time, and it quickly gets complicated to manage and organize each invoice. Automation takes care of the process for you. It can automatically send reminders to clients who are past due.
Recession-proof Your Revenue With Integrated AR and Payment Automation
NetSuite Credit Card Processing provides a self-driving AR solution enabling customers to make fast, efficient, and profitable payments. With Paystand and NetSuite, you can stand strong in a turbulent economic environment and scale your business without your fees and manual tasks scaling.