Using manual accounts receivable procedures may feel like second-nature to you if you’ve done things the same way for years. Dealing with AR through paper-based systems goes back decades, though you may feel stuck in a rut working this way in your company. Thanks to technology advancements, though, you don’t need to feel like you’re trapped into using outdated procedures.
Automation became ubiquitous over the last few years in virtually every industry. It’s not just relegated to the mechanical industrial sector either. You’ll find it in the smallest places, including software.
Now it’s possible to use AR automation with the right platform. Here at Esker, we recently held a webinar proving how AR automation needs more of a chance.
When you let AR automation play the role it deserves, it changes the way you manage invoice delivery, customer experiences, collections management, and your analytics.
Take a look at the points we made in our webinar to give you some idea of what you’re possibly missing.
The Risks in Keeping Things the Same
For those of you who insist on keeping the same procedures in place for your accounts receivable, you’re probably missing things occurring under the radar. Maybe things look stable on the surface, but once you dig into your analytics, you’ll likely find a few issues.
We cover some of these problems in our webinar and show you what you don’t initially see. Operational costs are one of the most immediately noticeable, especially if still spending money on paper and invoice mailings.
Productivity could suffer as well because you have to do all your AR procedures manually. Then you have the expense and time spent trying to persuade customers to pay their late bills. The collections process becomes a major expense in the long run, especially with lengthened dispute resolution.
In some cases, you may never receive the money from late-paying customers, hence bringing cash flow issues, as well as regulation violations.
Automation finally gives you a chance to streamline things. It aids every level in your company from executive management to your sales department.
Delivery of Your Invoices
Applying automation to your AR essentially gives more control to you AND to your customers. Sending invoices through automation lets you send them when you know the customer is most apt to respond.
Since you may know your customer habits wells, sending an invoice at a time appropriate to them means faster responses in paying their bills.
Through customer portals, you can let them dictate exactly when they receive their invoices and when they’ll actually pay.
Better Managing Your Collections Process
Through automation, you don’t have to go through all those outdated collections processes you’ve used for so many years. Post-sale interactions with customers can use automation to send digital messages rather than wasting time with snail mailings or phone calls.
In our webinar, we also show how task evaluation and root cause analysis help you determine how best to handle a delinquent payment without causing hassles.
You already know reporting and analytics are essential to scoping out realities behind how much money you’re really making. Automation plays a big part in this since everything occurring in your company goes into a cumulative analytics platform. The more detailed these reports are, the smarter the decisions you’ll make on how to handle accounts receivable.
Studying your cash flow models, benchmark reports, and scorecards through automated data gathering lets you fully realize how effectively you handle AR. Access to these metrics is universal through the cloud so everyone in your department sees them to take action.