Accounts receivable (A/R) collections optimization is an ongoing challenge. It’s impossible to free up cash, control invoice collection, and scale business when A/R logistics are unclear and inconsistent.
Increased remote working and unexpected financial obstacles have exposed routine inefficiencies. Accounts receivable challenges have financial managers searching for accelerated receivables solutions to right the ship and proceed with confidence.
Today, many small, medium and enterprise level businesses in dire need of improving their collections process are turning to automated A/R collections solutions. Automated A/R collections platform helps free up valuable human resources, streamline the collection process, and increase the cash flow you need to survive, grow, and thrive as a business.
Accounts Receivable Challenges
It’s the job of your accounting department to make sure payments are collected on time and with regularity so you don’t have to deal with any cash flow challenges.
Many businesses spend more money trying to collect receivables than they should. Cash flow secured by timely payment collection is one of the biggest A/R collections challenges facing companies today, and manually going after customers uses valuable time and resources.
Unfortunately, as businesses scale, more employees need to be hired to keep up with collections. Pretty soon, your in-house accounting department is working around the clock to collect invoices and keep the wheel turning each month. It’s an exhausting, outdated system.
You can reclaim time and optimize the entire process with an automated A/R collections solution that works smarter and faster.
Benefits of Accounts Receivable Automation
Receivables automation is often as simple as purchasing software or working with an experienced automated A/R collections company. The benefits are practically immediate. You’ll see increased productivity within your A/R department due to freed-up resources, and cash flow will be steadier than ever.
- Improved collection time – Days sales outstanding (DSO) is one of the foundational key performance indicators (KPIs) propping up your A/R team. The longer a sales invoice remains outstanding, the weaker cash flow you have and the more human capital you have to spend to collect that invoice.
The goal is to reduce your DSO to keep cash moving. Automation platforms do this by streamlining the process, ensuring reminders are sent out, and offering quick and easy payment options for clients.
- Increase cash flow – It’s simple math: The less you spend on manual tasks, and the quicker you turn around invoices, the greater your cash flow. The greater your cash flow, the easier it is to expand business and make big moves. Buck the trend and control your cash flow with accounts receivable automation.
- Optimize reporting and strategy – Remember those manual accounting tasks? Reporting and financial strategy is all part of the process, and you can optimize both when an automated A/R collections solution is doing the heavy lifting.
Gain insights into accounting analytics and KPI breakdowns with intuitive reporting software built right into most automation platforms. Everything from creating an invoice dispute process to establishing a follow-up policy based on payment history can be done with the right automated A/R collections solution.
- Reduce manual tasks – Accounts receivable departments often rely heavily on hours upon hours of simple-but-necessary number crunching and invoice-related tasks. A/R platforms turn necessary tasks into afterthoughts. Forget about tasking staff with repetitive process-oriented headaches and let an automated A/R collections platform do all that.
It’s almost that easy. Employ a tried-and-tested accounts receivable automation platform, and you’ll reap the benefits.
Accounts Receivable Automation is the Solution
A 20-person financial team loses almost 2,000 hours annually to manual accounting tasks. That is more than $100,000 (which isn’t chump change). Now expand that to a 100-person financial team, and you’ll get an idea of just how much money and manpower big companies spend on crucial accounts receivable tasks.
It should be your priority to find technology solutions to common accounts receivable challenges, especially when remote work and budgetary constraints are more prevalent than ever. The right A/R automation platform may be just what you need.