Five Reasons Why Businesses Are Procrastinating Automation Of Their Accounts Receivable Process

1. IMMINENT CHANGE IN THE PROCESS WILL DERAIL MY BUSINESS-AS-USUAL ASPECTS:

You're entirely correct if you think that automating your procedure for managing accounts receivable will significantly alter your company, but that’s no reason to be worried! The difficult part was to realize that a change is necessary. It's true that switching from a manual to an automated process would alter everything, but not in the way you might assume.

The actual stages and processes will stay precisely the same; you will still be sending customers’ bills and taking the necessary follow-up actions to guarantee on-time payment.

The distinction is that with automation, the system will handle the majority of repetitive and manual jobs for you. You won't have to spend endless hours updating spreadsheets, entering data again, printing outdated reports, searching through old emails, determining who to call, or switching between different systems thanks to accounts receivable automation. You can just focus on strategy that directly impacts your cash flow

2. AR AUTOMATION TOOLS ARE DIFFICULT TO HANDLE

AR Transformation tools like Inebura, a cutting-edge, ready to plug in non-monolithic AR platform comes API ready, SFTP ready and pre-loaded with multiple dashboards, innumerable functional modules to cater to different businesses, customisable templatized AR inputs, email integrated dispute/ issue tracker module, customer screens, pre-loaded schedulers as well as WhatsApp and email templates and one-click bulk reconciliation of invoices. These will help you to integrate Inebura with your existing system very easily .The whole gamut of knowledge and expertise that was accumulated by TanServ in AR Servicing in the large corporate and mid-market Segments from various industries has been used to develop Inebura.

We will also educate you how to make minor changes to the process on your own after it has been set up. Fear not—our staff is always available to assist and you may see the modifications prior to publishing them in the system to ensure that they are exactly what you want.

Although it will require some acclimatization on your part, using the system is simple. especially in contrast to the laborious and drawn-out manual procedures you probably use these days. For instance, you may effortlessly finish any task related to a certain customer on a single screen. This includes arranging correspondence with the customer, taking notes, transferring an account to another individual, gaining access to financial data, reviewing payment history, and much more.

3. AR AUTOMATION IS AN EXPENSIVE PROPOSITION

If one of your company's objectives is to effectively manage Working Capital, it seems logical that you would be hesitant to invest in software to automate accounts receivable. You'll be surprised at how inexpensive these systems can be; we're not here to suggest that setting up the system will be easy or free. To give you options based on your needs and budget, the trick is to identify the right vendor.

Other than affordability of the software itself, you have to remember to consider the many ways the software will help you save money as below:

  • Lower Financing Costs: Organizations that use Inebura technology usually receive payments 25% sooner.
  • Diminished Write-offs of Bad Debt: Several studies indicate that businesses write off two to three percent of their yearly accounts receivable as bad debt. Businesses that use Inebura or similar systems usually see significant reductions in bad debt because they are able to detect and settle disputes early, before they become uncollectible.
  • Decreased Staffing Costs: Many businesses discover that automation eliminates the need to hire the new resources they were thinking about. With your present personnel, you can do more tasks because the system automates most of the process.

Software for accounts receivable has capabilities that let you save money by removing the need to print and distribute reminders and invoices. Automation allows you to use an online customer interface, email statements, and present and pay invoices electronically.

If you have felt the need to take your AR management head on then don't allow your fear of the cost prevent you from increasing cash flow, expanding your business, and regaining control over your accounts receivable.

4. WHAT IF THE USERS AND CUSTOMERS DON’T ADOPT THE NEW SYSTEM

User Pangs:
Nothing is more frustrating than implementing software only to discover low acceptance rates; it is equivalent to squandering your time, resources, and energy. It makes sense to be cautious about how end users will respond to a change of this magnitude. Although we are unable to ensure that collectors in your organization will make use of the system, we can provide you with some guidance on how to increase the adoption.

It is always better to ensure end users understand the change's purpose, how it will affect their everyday lives, and how it will benefit them personally What suffering does it ease for them? How they can benefit from the insightful analytics? When you present the topic in that way, your collectors will understand that it is not something that is inhibiting them, rather, it is something that will help them become more successful overall. The adoption would normally be driven top down.

It's critical to keep in mind that the purpose of accounts receivable automation software is to improve human involvement – rather than replace it – by enabling users to operate more efficiently and effectively to provide optimal results.

Customer woes:
Many businesses worry that automating sometimes delicate topics will turn off clients, but you'd be amazed at how much automation may really increase customer satisfaction. For instance, the email reminders that are sent automatically will make sure they don't forget to pay you, even if most of your clients don't want to do that. It can be very beneficial to receive a polite reminder when there are numerous vendors to monitor and bills to settle.

5. WHAT IF, EVEN AFTER AUTOMATION THE AR PROCESS IS STILL NOT EFFICIENT

"What if after all of this, my problems still don't get solved?" You've probably considered it many a times and while it might be a legitimate concern, a plethora of research and firsthand accounts exist to allay this anxiety. Inebura has been able to achieve for its clients some incredibly impressive outcomes

Apart from that even industry reports suggest 20%-25% reduction in DSO,25 % reduction in Bad debt for organisations who shifted to Account Receivable Management Tools

EPILOGUE
Change is constant:

It has been seen that Behemoth Organisations have not grown and even fallen when they didn’t change. Furthermore, expansion and change are the basis of the adoption of accounts receivable automation.

Using an accounts receivable system to streamline your collections process is an indication that your company is expanding. It's proof that you're scaling up too fast to monitor with your current practices. Therefore, don't back down because this is unfamiliar territory. Instead, embrace it and learn from it.

To know more or to book a demo, do write to us – sandeep@inebura.com or visit us at www.inebura.com.

Author

Sudarshan Banerjee

Inebura , Head of Product & GTM

Sudarshan Banerjee is a Product, Process and Automation professional. His areas of interest include Sales Force Automation Tools, Sales Process Construction, Data Science, Data Analytics, Statutory Audit and Compliance, Project Management and Change Management.

He has over 19+ years of experience in Business Development, Sales, Process Planning, Business Strategy and Product Development spanning across various domains namely ITeS, FMCG,Financial Services, Travel& E-com.

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