Just About to Give Up on Customer Invoicing?

A Better Way to Improve Cash Flow with MS Dynamics GP & Accounts Receivable (AR) Automation

Improving working capital seems to be a motivator for so many of the folks we talk to who investigate automation software. Improving working capital essentially means impacting the number of day’s difference between when you pay for things and when you get paid. For example, cash goes out to pay for parts and labor to build your products. After 10 days, your product is ready to be sold. It takes another 20 days to sell your product to a customer (Net 30 terms), but the customer pays you early in 25 days. The total working capital cycle is 55 days. Check out the diagram below for a visual on how this process of total working capital works. The business needs enough working capital to fund this process until it gets paid. For a financial professional, there are lots of measurements that comprise working capital – days sales outstanding (DSO), inventory days, payables days, and more. Many of such measurements and procedures are manual and time-consuming. Those who work with MS Dynamics Great Plains (GP) continue to identify a handful of key pain points:

  1. Manually keying in data.
  2. Inefficient paper posting.
  3. Sending invoices one way when the customer is them expecting another.
  4. No remittance information received with the payment.
  5. And, believe me the list continues…

Simply, Accounts Receivable (AR) Specialists and collectors want to spend less time preparing for calls and searching for invoice information and more time actually talking with customers to collect payments.

total - working - capital - accounts - receivable - esker

Accounts Receivable Challenges

Streamlining the receivables processes within organizations that have MS Dynamics GP ERP is one building block to streamlining the invoice process and improving cash flow. Are you:

  • Unhappy with your DSO?
  • Experiencing low cash flow?
  • Challenged with keeping up on all of your collections activities in GP?
  • Having customers calling in looking for copies of their invoices?
  • Feeling generally overwhelmed and unproductive in your AR collections efforts?

If you answered yes to the questions above, it may be time to seriously consider investigating accounts receivable management automation software that integrates with MS Dynamics GP  to automate those touch points of your accounts receivable process, thus positively impacting the number of days difference between when you pay for things and when you get paid. Accounts receivable automation software can often do better than the collections module in GP to quickly turn your invoices into cash.  It is also capable of sending and archiving invoices regardless of the media type (i.e. mail, fax or electronic invoice). With access to an invoice portal, your customers are able to view and download their invoices for up to 11 years, and with invoice acknowledgement, you know when an invoice is read.

In addition to improving working capital other key benefits for your business and for your suppliers, include:

  • Cutting the cost of sending billing documents by 40-80%.
  • Reducing document handling time by up to 96%.
  • Reducing billing errors and returns by up to 90%.
  • Significantly reducing DSO.
  • Preventing lost invoices and other related documents.
  • Reducing the costs of invoice storage with electronic archiving.
  • Knowing exactly when customers read their invoices via an invoice acknowledgement.
  • Accessing invoices online 24/7/365 for review and download.

Slow customer payment restricts your business. Reducing your DSO converts your Accounts Receivable into cash on hand to grow your business. Dynamics GP users who automate their invoice process can receive payments sooner, have more flexible access to information, and gain a competitive advantage in a business world where companies are continually waiting to be paid.

Are you guilty of the 7 worst practices in Accounts Receivable? Get this eBook today and find out how to make your wrongs RIGHT!

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Diana Eagen

Diana Eagen joined Esker in February 2012. As Sales Director, she has responsibility for sales and customer development for Esker US. Diana has 20 years of experience working for various software companies, and specializes in solving business problems utilizing cloud based, software-as-a-service solutions.

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