Many organizations have started promoting this idea in the past year, and it’s definitely gaining momentum. But really, what’s the biggest benefit your company receives from accounts receivable automation?
According to the 2014 Order-to-Cash Automation report, the biggest perceived benefit of accounts receivable automation improved cash management. This has changed from the previous year where fewer customer inquiries about misplaced invoices was the top perceived benefit. The shift in perceived benefits shows us that companies are viewing their accounts receivable department more strategically, and seeing how automation can not only benefit the AR department, but the organization as a whole.
5 Additional Benefits of Accounts Receivable Automaton
Other key benefits identified in the Institute of Financial Operations (IFO) study include:
- Reduced days sales outstanding (DSO)
- Ability to meet customer demand for e-invoicing
- Fewer customer inquiries about misplaced invoices
- Greater visibility into invoices
- Improved compliance
What was surprising was only around 10% of the respondents indicated that the ability to meet customer demand for e-invoicing was a benefit. I would’ve thought this percentage would be higher, but maybe this is more important for bigger customers. Smaller organizations may not be quite on board the automation train yet (at least for AR), so they may still require paper invoices. What’s your experience with this? Are your customers asking for electronic invoices instead of paper?
To learn more about accounts receivable automation along with automating the entire order-to-cash (O2C) cycle, check out the full report: 2014 Order-to-Cash Automation Study
Not only does it go over all the benefits of AR automation, but it also goes into objectives and challenges, hurdles to O2C automation, and automation implementation plans.