WHAT IS ACCOUNTS RECEIVABLE AUTOMATION?
Accounts Receivable Management, in simple words, is the practice of obtaining monies from clients/ customers for products/ services within a given period of time. Organizations use AR Management to ensure that every step involved in the payment collection process is properly tracked and managed. The process is a vital component of building liquidity and profitability and avoiding bad debts – and it involves many more things than simply receiving payments on invoices.
A powerful and efficient AR Management Process can, in fact, make the difference between dwindling capital and a successful business. It helps companies maintain a healthy cash flow, and is paramount for any company’s long-term success.
However, the CURRENT MANUAL & PAPER-BASED PROCESSES LIE AT THE CORE OF ACCOUNTS RECEIVABLES INEFFICIENCIES:
- Paper-based processes slow down the whole invoice-to-cash cycle –essential tasks, such as generation of invoices, starting dunning campaigns, reconciling accounts etc. take a lot of time and the help of multiple teams.
- Manual & paper-based invoicing process results in a lot of extra work and introduces many points of failure that can naturally lead to collection delays.
- Manual processes do not give AR Teams the complete picture of the status of open receivables and their cash flow across the order-to-cash cycle.
- With a manual process, reports on collection KPIs, such as DSO, working capital, AR aging etc. are a tedious process.
- Moreover, whether intentional or unintentional, human bias during analysis can produce skewed predictions about when to expect customer payments or when to press harder for payments. These errors and/ or biases can diminish incoming cash and also take a lot of time to fix.
- With manual AR Management processes, the AR teams are constantly looking backwards and that means that they are not able to catch important trends. This could actually result in a lack of growth opportunity.
It’s time that AR departments move away from their labor-intensive, inefficient way of working and respond to the constantly rising demands of companies to improve working capital metrics.
It’s time that AR departments recast themselves in a much bigger strategic role as a value-creators that free working capital and actively contribute, not only to the company’s growth, but also towards improving customer experience.
And so, Accounts Receivable Teams are under tremendous pressure to optimize their processes and rethink about accounts receivable and accounts receivable management in a more strategic way. The overall strategic goals are to shorten the invoice-to-cash cycles, reduce costs, improve process visibility, and release additional liquidity.
A simple and efficient way to achieve the above strategic goals is through Accounts Receivable Automation Software. And not to forget are some additional benefits, such as freeing up teams to pursue more value-adding tasks and help increase the company’s bottom line and ROI.
WHAT IS ACCOUNTS RECEIVABLE AUTOMATION?
Simply put, Accounts Receivable Automation is a way of automating repetitive, mundane tasks that help collect monies that customers owe to the company. It replaces the time-consuming manual tasks involved in the Accounts Receivable Process, streamlines a company’s financial transactions with its customers and, most importantly speeds up the entire credit-to-cash cycle so that you can fast forward your revenue to cash.
AR AUTOMATION SOFTWARE: A SIMPLE WAY TO TRANSFORM YOUR AR MANAGEMENT PROCESS
AR Automation Software is non-intrusive and extends the basic functionality of the systems already in place. With AR Automation too, the three basic tenets of Accounts Receivable, viz: Invoicing, Collecting Payment and Reconciling the two to ensure that the information matches remain in place.
AR Automation makes it easier to generate invoices on time in a customizable format that meets the customers’ accounts payable requirements. It decreases the number of times AR Teams need to input key data points, such as information that needs to be part of the invoices, payment terms & conditions, any details that are unique to the customers etc. Once that data gets entered into the system, you can follow the customer’s account through the entire span of the payment process. The software tracks different payment types, matches the invoice to the sales order and monitors aspects of collections that might result in delayed payments. The information in the customer databases, not only provides a company with real-time reporting on the status of invoices and payments, but also allows the company to send out automated communications such as dunning emails to customers.
THE COMPONENTS OF AR AUTOMATION SOFTWARE THAT HELPS TRANSFORM YOUR COMPANY’S AR MANAGEMENT PROCESS:
AR Automation Software makes it easier to optimize your company’s collection process and help you stay on top of your receivables. Make a strategic move and transform your accounts receivables management process into one hub with AR Automation Software and cash in 100% of your turnover.
For more information on how AR Automation Software can help your company fast forward revenue to cash, visit www.inebura.com or write to sandeep@inebura.com