Why Automating Accounts Receivable Processes Is A Game Changer For Your Business

Managing accounts receivable is an integral part of running a business. However, it can be a tedious and time-consuming task. Reliance on manual Accounts receivable processes comes with its own issues and pitfalls, ultimately leading to delays in cashflow.

Fortunately, businesses can automate various accounts receivable management processes and streamline their operations, reduce errors, and increase both productivity & efficiency.

Accounts Receivable Automation is not about completely removing the human element or a threat to jobs, it is rather a much needed tool to help increase productivity and efficiency of the entire AR process and in turn the organisation. An efficient cashflow is one of the key elements of ensuring the financial health of a business, and AR automation just helps in accelerating your revenue to cash cycle.

While a comprehensive AR automation software streamlines the process in many different ways, in this blog we are going to give you a glimpse of the processes that can be automated through such software:

  • Invoices not sent right are one of the most cited reasons for payment delays. Sending invoices right the first time can increase payment collection within due date by up to 50%.
  • Further, Intelligent Automation Capabilities can help attach all POs, bills, respective proof of delivery notes etc. while sending out invoices. This not only saves time, but it also reduces the chances of errors that can arise from manual entry.
  • Automating payment reminders is a simple yet effective way to ensure that customers pay their invoices on time.
  • Payment reminders, ageing reports and all other related communications can be sent out automatically via email and WhatsApp, reducing the burden on accounts receivable teams. This helps to ensure that customers pay on time, reduce the likelihood of late payments and improve cash flow.
  • Account Reconciliation is another accounts receivable process that can be automated. Reconciling accounts can be a complex and time-consuming task, especially for large businesses, however, by using AR automation software to reconcile accounts, businesses can save time and reduce errors.
  • Automated account reconciliation systems can help businesses stay on top of their receivables, ensuring that they are up to date and accurate.
  • Credit Risk Management is a complex and slow process but of great importance for finance leaders. Automated Credit Management Tools present in AR Automation Software can help businesses make informed decisions about extending credit to customers and managing their credit limits. This can help to reduce the risk of late payments and defaults, which can lead to lost revenue and lower profitability.
  • AR Automation Software’s Automated Reporting & Analytics Tools help businesses gain insights into their accounts receivable processes and customers’ payment behaviour. By analysing data, businesses can identify areas for improvement and optimize their processes to improve efficiency and profitability.
  • It also helps businesses understand their accounts receivables performance, including their collection times and average DSOs. And hence, help businesses identify problem areas and implement solutions to improve their accounts receivable processes.

In conclusion, automating accounts receivable software, can help businesses improve efficiency, reduce errors, and increase profitability. By automating processes such as invoice generation & delivery, payment processing, payment reminders, account reconciliation, credit management, and reporting & analytics, businesses can free up time and resources. The teams are able to focus better on growth and expansion, better manage cash flow, reduce the risk of late payments & defaults, and also gain insights in their AR performance.

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


Sandeep Handa

Pontem Integrated

Sandeep Handa a.k.a. Sandy, is a marketing communications leader with more than 25 years of experience across various global & local advertising agencies and industry verticals. He has worked on many a prestigious brands, like adidas, Luxor, JK Tyre, Maruti Suzuki, Lay’s, Mortein, Hitachi, NIIT, PVR Cinemas, Nestle Chocolates, Uninor, HCL to name a few. Before venturing out on his own, Sandy was the Head of Delhi Office for Bates CHI & Partners. He is an amateur artist, and an up coming off roader who loves to drive in the hills.