Also, much smaller businesses do not have the expertise to deal with the receivables process and collections.
Unlike many other fields, process improvements in finance are easy to measure, so benefits can be quantified, and you as a business manager or owner can make informed data-driven decisions.
Here are a few reasons to automate your account receivables this year:
- Cost reduction – everyone is always looking for ways to be more efficient and drive costs down. Following up with your clients regarding payments costs your business hundreds of work hours annually. These hours, and the costs associated with them, can be saved. You and your team have better things to do then reminding some clients about their overdue invoice.
- Getting paid faster – clients love to take their time with payments even past the due date. Your hunch is backed by data. Sending invoices electronically and following up with automated reminders that include payment options assures that your invoice is a top priority for your client and is dealt with first.
- Time-saving – automation frees up your employees to focus on the strategic aspects of your business. This also improves your operational excellence, as opposed to dealing with repetitive process-oriented headaches.
- Higher client satisfaction – most clients appreciate the reminder. Most people are uncomfortable with unpaid bills and see the reminders with a detailed record of unpaid invoices as an additional service on your side. Accurately crafted payment reminders are another way to engage your customer base and get them to place more orders with you, driving your revenue up!
- Reduced human errors - human error in accounts receivables can complicate things and ruin a relationship with a client, which adds a margin of the cost to your operation. While your collections clerk is out sick or isn’t paying attention, automation is always focused and never takes breaks. Reduced errors will help your business to save time, money, and will help you to avoid awkward conversations with clients.
- Enhances your image – reputation is everything in business. Having an automation will project positively on yours. It makes you look more professional, advanced technologically, and better equipped to deal with modern-day challenges. Clients love to be associated with a great brand and prefer their vendors to be on top of things.