Why Automation is the Strongest Tool in your AR Belt
Today 69% of organizations around the world still perform significant processes manually. Companies that don’t automate processes spend excessive time on tasks that could be done with the help of technology. They haven’t leaped into digital transformation out of a lack of knowledge or fear of innovation.
Companies organize different areas to fulfill tasks and objectives. One of these areas is Accounts Receivable (AR). Accounts receivable automation is essential in the department's management, generating competitiveness, efficiency, and value in your company.
Leap towards digital transformation and increase the productivity of your AR. Continue reading this article to learn why automation is your strongest tool.
What is AR Automation?
AR Automation takes a modern approach to accounts receivable processes. This happens through digital systems that help minimize repetitive and time-consuming tasks.
With this approach, your company saves time and money as your employees avoid tedious processes. Workflows will also see minimal follow-up procedures as a result.
By automating your collections, you’ll be able to focus on more complex tasks and collection plans such as:
- Portfolio segmentation
- Enterprise tools
- Technological innovation
- Team training
It is of utmost importance to know the essential points to maintain an efficient collection in addition to creating strategies planned on the actual behavior of a customer.
Benefits of Accounts Receivable Automation
There are many reasons why AR Automation can be one of the best decisions you make for your company. Let's take a look at some of them:
Save Time
Your employees will have more time to focus on other tasks if they don't have to take care of tedious tasks. Team productivity suffers when members worry about tasks that are better automated.
Your company will have a more cost-effective and efficient process when automating AR. This improves cash flow and grants flexibility to your staff's work.
Invoices are sent automatically, which means no customer will be billed late. Employees don't have to send emails or invoices and communicate with customers about payments. They can focus on improving customer experiences in other ways.
Save Money
Reducing costs makes a big difference to a business, especially in today's economy. If your team has to send reminders and communicate with customers when they don't pay, you can waste a lot of money. AR Automation solutions play a role in solving cash flow problems such as late payments.
With automation, your business gets the money without fighting for it. Employees don't have to stress dealing with late payers. They can complete other tasks, saving time and making it easier for them to perform with greater productivity and efficiency.
AR Automation helps your company avoid obsolete systems that could make paying bills more effective.
Manual Processes are Risky
Humans make mistakes and forget important tasks. This leads to problems with payment reminders and collection. AR Automation will act on time every time.
Listing and manually entering non-payments into a spreadsheet is not a foolproof process. People can enter the wrong information and miss a payment or add a customer to the wrong list. You can avoid this type of error with AR Automation.
Get Your AR on Time
Not all customers pay immediately upon receiving an invoice. But they will likely pay before the due date if you send automatic reminders.
You are more likely to reduce late payments if you use a quality reminder and automation process.
Keep the Best Human Elements
Keeping customers happy is one of every business's most important goals. Providing a humanized experience goes a long way toward achieving this goal.
Using software to deal with customers is an excellent way to keep your best human elements. Consider complementing your automation with well-designed support staff.
You can create personalized experiences with AR Automation to show customers they matter. When automating billing, it's easier to focus on personalization because of the time you're saving.
Add elements like transaction histories and your logo to improve customers' payment experience.
Key Elements in an Automated AR Platform
There are many elements to consider when using an automated AR platform—knowing them to avoid unnecessary mistakes and get the most out of your chosen platform.
Integrations
Ideally, you want to use other software with your automation processes, such as Sage or Netsuite. Integrations help workflow improvement and team efficiency, which are essential for any business. You may miss streamlining your workflow if your platform doesn't allow integrations.
Electronic Invoicing
Keeping track of expenses is essential for everyone. Show your customers exactly where they are with their billing and how much they owe. If you can help your customers with this, they will love you for it.
Invoice Reminder
Every good AR Automation platform must include this feature. It's one of the main advantages of automation. Having it will increase the benefit of using the platform.
Contactless Payments
Contactless payments are convenient and, in many cases, preferred. If you want to make it easy for your customers to pay, use an AR Automation platform with this feature available.
Automation can make a drastic but good change in your company's AR department's effectiveness and efficiency. Using the right platform is essential. It is also vital to ensure the focus is on customers to make your team's job easier.
Optimize your business work and cash flow through AR Automation with Paystand. Book a demo today and let one of our experts guide you through this path.