Do you get a lot of emails or phone calls from your customers requesting that you send another copy of their invoice? Do you use a lot of Excel spreadsheets to track payment follow-up tasks? Do you know there are bottlenecks, but don’t have the data to prove where they are? Do you wish you could change your accounts receivable (AR) and collections management process quickly, but are buried in hierarchy? You’re experiencing the stress of a manual workflow.
Automating accounts receivable and collections process workflow is simply a more efficient sequence of activities that provides benefits from end to end. Here’s how:
- Customers can access a web portal to view and pay invoices
- Seamlessly transition customer invoices from being sent by postal mail to email
- Analyze AR business processes and provide management with Key Process Indicators (KPIs) that highlight the team’s progress as well as areas that need improvement
Here are three of the greatest benefits achieved by ditching paper forms, sticky notes, and email requests, and automating accounts receivable and collections management business processes.
- Faster Payments Overall
An automated solution speeds up the process for customers in many ways. Invoices can be made immediately available for customers to review, make payments, pose questions, apply credits and more. An online portal helps keep your company from losing out on business or appearing inflexible — any payment arrangement you can think up can be incorporated with an automation solution.
- Improved Customer Service
The consolidation of customer information can greatly enhance your company’s level of service. The Institute of Financial Operations’ 2013 AR Automation Report found that 31% of respondents believed that the biggest benefit of an e-invoicing solution is fewer customer inquiries about misplaced invoices. Automation can almost completely eliminate this problem as enterprises are able to pull up invoices online immediately. Each point of contact and experience a company has with a customer plays into their decision to work with your company again. AR is usually the last communication a customer has with a company, so it will be at the forefront of their mind when they consider working with said company again in the future. By making communication and the payment process fast, simple, and stress free, collectors are driving repeat sales and improving customer service.
- Spend Time on What is Really Important
An automated AR system will result in significantly less hours spent for staff working on invoices. With the extra time, employees can work on more valuable tasks. In addition, less workers handling all the tedious follow-up tasks will result in fewer critical mistakes. Human error is common, especially when an employee is overwhelmed with an outdated AR method. Simplifying the process can correct those mistakes.
Virtually every aspect of invoice delivery, customer payment and collections management can benefit from automation. Have you considered automating your AR processes? Learn more about the advantages automating accounts receivable can bring your business.