It’s projected the accounting software market will reach $11.8 billion by 2026. Over 50% of C-level accounting executives expect automated accounting systems will have the highest impact on their businesses over the coming decade. And when we look at all the different ways to improve accounts receivable collections through automation, it’s easy to see why A/R automation software has become a must-have for enterprises.
Automation Increases Cash Flow and Saves Money
Automating A/R collections increases cash flow, consistency in payment collections, and cash available. It provides flexibility and liquidity as well as the freedom to invest in other opportunities or pressing business goals (such as payroll management).
The impacts are big, as many companies struggle with accounts receivable collection and processing invoices on time. Statistics suggest companies end up writing off 4% of their accounts receivable as bad debt. For enterprises with million-dollar revenues, this can add up to millions in lost income each year.
With automation, chasing down late payments, and collecting outstanding invoices becomes trivial. Everything is done for you in the system; late payment notifications, follow-up emails, and applying payments for each invoice.
Support Productivity Through Automation
Automation makes it easier than ever to collect payments without the effort of manual follow-ups. But the broader benefit here is productivity. With automation, you give your collections teams the means to manage critical A/R collections tasks while offloading less-important administrative work to a computerized system.
More than anything else, this is the chief benefit of accounts receivable collection automation. Manual, repetitive tasks represent one of the biggest inefficiencies in an A/R collections system.
Tasks related to data entry, invoice processing, spreadsheet reviews, and client contact can be improved with an automated A/R collections system that manages the processes for you. These are big productivity boosts to overall business; employees shouldn’t waste their time doing tasks that can be done through AI. Even tasks as simple as thank-you emails for confirmed payments can be done through an automated A/R system.
No more hours spent building reports or sending emails. Automation brings the much-needed flexibility to your collections system which allows your company to grow and prosper.
Get Complete Control of Your A/R Collections Processes
The automation of accounts receivable processes represents a new way of working. Your team is free to focus on what matters instead of tedious and time-consuming A/R collections management. In other words, you have complete control over what your team works on – even when staffing resources are limited.
In one study, 25% of credit departments admitted they didn’t have adequate staff to manage their workloads. Rather than taking the costly approach of hiring more people, why not automate A/R collections tasks and eliminate the need for supplementary staff?
And speaking of control, it’s important to note the boosts to A/R accuracy brought by automation. A common source of late payment processing isn’t necessarily receiving the payments late; it’s a result of compliance or administrative problems such as data entry errors. With an accounts receivable automation solution, you’ll have an AI platform behind you to track numbers and automatically assign variables as needed.
A Must-Have Solution for Enterprise A/R Efficiency
Accounts receivable automation benefits encompass nearly every aspect of your collections process, from cash flow to productivity to risk reduction. Better yet, this is only the tip of the iceberg in terms of what A/R collections automation can bring to your company.
If you’re curious about creating end-to-end efficiency in collections or improving your cash flow collection, contact the accounting experts at Gaviti. We’ll show you firsthand how an automated accounting solution can redefine the way you handle payment processing.