One of the single biggest improvements a company can make to its processes is automating its accounts receivable (A/R) collections method. We’re automating plenty of other business processes across customer service, system security, inventory tracking, and more; why not your accounting system?
After all, we don’t need to describe to anyone who’s worked in accounts receivable processing how much of a hassle manual collections are. They’re repetitious, mundane processes that eat up employee time and motivation. And even worse, manual collections tend to produce higher error rates and inconsistent communication schedules because everything must be done by hand.
Rather than placing so much burden on your staff, why not leverage an accounts receivable management platform that can automate these tasks for you?
The Top A/R Collection Automation Benefits
Many businesses are already aware of how automating the collections process can simplify workflows. For the uninitiated, let’s go through the biggest benefits of these platforms:
Create a Single Source of Truth
If you’re tired of searching for data across paper files, Excel sheets, and whatever other systems you may be using, look to automation. With the right automated A/R collections software, you’ll have a centralized database for all data, accessible by any employee. This supports efficiency in your accounts receivable team but also opens up access to other departments, making it easier for any team to work together without excessive back-and-forth communication.
Save Time and Money
Here’s the benefit everyone expects during conversations around automation: time and money. Rather than running accounts receivable aging reports manually or spending time checking records to see who needs to be contacted, automation does the heavy lifting for you.
With all information in a single centralized system, it’s easy to run reports with just a few clicks and transmit that data to whichever team needs it. Plus, you can set up easy invoicing processes that always bill on time, making it more likely that you’ll get paid on time, too. Taken together, automation reduces the effort needed from employees while boosting your cash flow. Win-win!
Gain More Accurate Data
It stands to reason the more you rely on manual processes; the more risk of human-related error. Even well-oiled A/R departments may need to collect data from multiple sources, spreadsheets, and systems to get the work done. But this is far from the most efficient way to manage A/R processes.
An automated accounts receivable system takes the guesswork out of the equation and offers a single platform for all information. No more pulling records or trying to decipher hand-written notes. Every bit of customer data can be uploaded to the platform, giving you an error-free record for any future analysis.
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Enable Better Forecasting for Payments/Cash Flow
A/R collection automation benefits aren’t just about efficiency; they’re about giving your collections team the business intelligence it needs to make better long-term decisions. When you have a way to collect, share, and analyze every client’s data in a single dashboard, you’ll have much better insights into:
- Collection effectiveness
- Days sales outstanding (DSO) rates
- Turnover ratios
It’s all about bringing visibility to your processes and your customers’ payment habits. Armed with this data, you’ll be able to more accurately predict cash flow across all of your accounts, regardless of whether or not your customers pay on time.
The Right Automated Collections Platform Brings It All Together
The advantages represent drastic changes to the outdated workflows you may be used to, but don’t let the changes fool you. There’s no big IT project or implementation required to start reaping the benefits of automation. All it takes is a simple, user-friendly A/R automation platform like Gaviti to start up-leveling your processes. Sign up for a demo and we’ll show you how easy it is to improve your A/R collections process.