Most finance teams, for long, have been using the same manual AR processes, getting buried in extensive spreadsheets, and implementing dunning campaigns just because it is needed.
You continue to send out invoices every month, your team puts in the effort to keep track of customer past-due accounts and collections, and they continue to burn the midnight oil to scan multiple spreadsheets to generate reports that reflect the business’ cash inflows. And here more CFOs think, that this is the way work happens, and everyone’s been doing this for years, so there’s nothing that needs fixing.
Well, in this dynamic and new business environment, the thinking needs to evolve to working smart instead of working hard irrespective of the fact that this is how work has happened for donkey’s years.
CFO’s should and must ask themselves what this manual Accounts Receivable setup is actually costing your organization and is there an efficient way to generate savings, both in terms of cost and time that can be implemented?
The answer lies in AR Automation Software Solutions such as Inebura.
So, let’s understand what exactly is the actual cost of relying heavily on manual AR Processes:
1. MANUAL AR PROCESSES REQUIRE MORE PEOPLE TO DO MUCH LESS WORK
When your finance team uses manual processes to manage their AR, you need both team members and time get essential tasks – such as generation of invoices, starting dunning campaigns etc. – done. The implications are two fold – one, more team member means that your staffing budget is strained and secondly, it leaves very little time for your existing team to do any value-added strategic tasks.
However, you can flip this dynamic by implementing an AR Automation Solution such as Inebura. Inebura will automate the most time-consuming, mundane and routine tasks such as generating and sending invoices, customizing dunning campaigns, collection reminders, reconciliation etc. This will give your AR teams more time to focus their efforts towards the business and other business issues.
2. HUMANS ARE SUBJECTIVE; THEY HAVE OPINIONS AND THEY ARE ERROR-PRONE
No human is perfect, everyone makes errors – performing mundane and repetitive tasks can and will actually bring this imperfection to the forefront. Further, every human being has biases, and no matter what, intentional or unintentional, these biases can result in skewed analysis and predictions. Such errors and subjectiveness might result in delayed payments or might even diminish incoming cash, and furthermore, it might also take time to address and solve the issues.
Apart from cutting down on time, Inebura ensures that the analyses and predictions are based on real-time data that makes it unbiased and absolutely accurate. And with in-built AI tools, Inebura has the ability to implement dunning campaigns that work best for each customer.
3. WITH MANUAL AR, GROWTH MIGHT TAKE A BACK SEAT
As your business grows, you will definitely need to hire more people in your finance team to manually handle the AR processes – this need for more staff and the error-prone nature of humans will drastically impact the cost side of the entire equation.
With manual AR processes, your AR team is always looking back at existing AR-related issues and this could mean that they are missing out on catching or even recognizing important trends that are shaping businesses. And you might land up paying a high cost for lost opportunities. With Inebura, your team can generate customized reports, get accurate real-time analyses, drive data-driven predictability and much more. It gives you the power to make strategic business decisions based on hard facts and numbers.
Further, the in-built tools, Inebura provides real-time insights that help your AR teams to monitor key metrics and trends that they can use to optimize cash flow, manage risks and improve financial performance.
4. MINIMIZES RISKS OF NON-COMPLIANCE & REGULATIONS
Businesses have no choice but to ensure compliance with financial regulations. With manual AR processes, the risk of non-compliance is extremely high. Further, inaccuracies and delays can expose businesses to penalties, audits and other legal complication that might prove to be costly both in terms of finances and reputation.
Inebura, in fact, enhances compliance by ensuring that all information and records and not only up-to-date but also easily accessible. Inebura can provide audit trails that can ensure that all financial processes meet regulatory standards thus protecting the business from non-compliance risks.
5. ENSURES BETTER CUSTOMER RELATIONSHIPS
The process of managing AR is not just about getting paid or getting paid on time; it’s also about managing and maintaining customer relationships. For many businesses, the slow and inefficient nature of manual AR processes takes a huge toll on their customer relationships. Delays or errors in invoicing leads to not only dissatisfied customers but are responsible for high frustration levels and this might result in loss of repeat business. This is just one example of the problems in manual AR processes that can lead to customer dissatisfaction.
Inebura ensures consistency in not only mundane repetitive tasks but also in interactions with customers. With tools that ensure your team sends out customized automated reminders, online payment options that make it easier for customer to pay on time, automated invoice generation & delivery, automated reconciliations and much more, Inebura helps build overall trust. Inebura will successfully help to create a positive experience for your customers that will help foster better relationships and also higher retention rates.
For businesses investing in implementing an AR Automation Software Solution such as Inebura can help completely transform and streamline their invoice-to-cash cycle. Be it reduced labor costs or enhanced customer relationships, Inebura brings in benefits that extend beyond imagination. Moreover, when compared to the hidden costs of manual AR processes, the initial one-time cost of putting in place an AR Automation Solution is outweighed by the long-term savings and efficiency benefits.
So, it’s time to not only switch to a streamlined, efficient, error-free approach to managing AR but also commit to long-term growth and financial health. To know more, write to sandeep@inebura.com