Most companies these days leverage accounts receivable (A/R) collections software to improve their processes. The problem is, no two platforms are exactly the same, and many companies continue to work with sub-optimal systems offering only a fraction of the features of other systems.
This reality puts companies in an awkward position. They either don’t realize there’s an issue, or they do recognize the problem but don’t realize how easy it is to find a solution. While the following is by no means an exhaustive list of the benefits of A/R automation, it’ll give you an overview of the most critical benefits to be aware of.
1. A/R Processes and Strategies Standardization
An accounts receivable management platform offers an easy way to establish baselines for how collections should be handled across each client. This applies to every aspect of your collection policies:
- Account updates and management
- Dunning/follow-up processes
- Grace periods and extensions
- Payment types
This reduces confusion among team members because you’ll have clear, step-by-step processes for how each client should be handled. It also establishes important frameworks upon which you can build with other accounts receivable tools, such as A/R collections automation that will further improve your processes.
2. More Accurate, Timely Data
As companies grow, they tend to get stuck in their slow, manual processes. They drown in customer data and struggle to analyze it effectively. By the time they do, it’s no longer accurate.
Data management is a key benefit of A/R collections automation. By setting up automated invoice processing, triggers, and account alerts, your team spends less time manually inputting data and more time actually reviewing the relevant figures.
Take away the hassle of manual data entry and it becomes far easier to track the payment habits of each client, as well as what steps you can take to improve your client relationships while the data is still viable.
3. Get Everyone on the Same Page
Using one system for all collections processes keeps everyone on the same page. There’s no missing information or lost communications because everything is in the system. This can pay dividends when you need to transfer client accounts and/or add/remove employees from the company.
It’s all about taking the guesswork out of the equation.
Every team member should have access to the entire spectrum of knowledge you’ve built for each client; their records, payment histories, and unique business restrictions with which they are dealing. Leverage a single A/R management platform for all knowledge and reduce the risk of errors across your collections team.
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4. Set It and Forget It
One of the biggest benefits of automation is the set-it-and-forget-it mindset. Rather than keeping tabs on client accounts, invoice reminders, or dunning emails, you can set simple triggers in your A/R collections platform that generate notifications for you.
Forget collecting aging reports to see who’s overdue.
Accounts receivable management solutions have tools that handle schedule tracking for you, letting you know which accounts experience chronic issues and may require extra attention. It’s simple and it’s one less thing your A/R team needs to worry about.
5. Save Time, Money
From the broadest perspective, automated accounts receivable management software saves you time and money by helping you work smarter – not harder. Your collections teams won’t worry about manually tracking each and every late payment. This frees them to focus on more important and value-driving tasks.
This type of optimization will improve all aspects of your collections, including key metrics such as Days Sales Outstanding (DSO). When you take the manual element out of the equation, you’ll begin seeing cash returns faster and more predictably.
Accounts Receivable Solutions for Your Business
A/R collections automation isn’t just a thing of the future. It’s a benefit all kinds of companies are enjoying today. And best of all, the process of automating is easier than you might think.
If you’re looking for a new way to streamline your A/R collections processes, you can start by contacting Gaviti for a business assessment. We’ll review your current A/R workflows and bring you the best accounts receivable management platform to improve your operations.