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5 Signs Your Accounts Receivable Management Needs Automation

Get paid as quickly as possible to strengthen your cash flow and to remove stress. How to do it when the time and resources are limited? The solution lies in technology. How Accounts Receivable automation can help your business.

Dimitri Raziev
Dimitri
Founder, Kolleno
datepicker icon August 14, 2023

Get things done, get paid, repeat. Isn’t it easy? Picture it: you just provided services or goods, got paid with no delays, and your cash flow is thriving. It is not just a dream scenario. It is your routine, should you implement automation of your Accounts Receivable today. However, outstanding Accounts Receivable are prevalent among businesses of all sizes and nature. However, it doesn’t have to define you or your company. Here are five reasons why automation might change your business for the best. This is your sign to automate your Accounts Receivable management if you need one.  

1. Nurture your peace of mind 

The toll of accounts receivable on business owners’ mental health is no longer a secret for any of us. According to a study led by Pay.UK in January 2020, 26% of Small or Medium Enterprises (SME) business owners worry about late payments even outside their office hours and report adverse effects on their private life. Furthermore, 17% admit that late payments undermine their confidence in managing their company.

On the other hand, 3 in 5 enterprises across the country are currently waiting on payments from customers, according to new research from Barclays surveying 500 small business owners. That makes business owners so stressed out that 9% of them considered asking for psychological help to cope with their anxieties over being paid late. Kolleno‘s solution offers you more than counselling. It provides you with a compelling solution to take the weight of Accounts Receivable management off your shoulders. Make your work enjoyable again, and leave the payment chasing to technology. 

2. Nurture your cash flow and working capital 

Automation can help reduce late payments and improve your financial results. The more you wait, the more your ability to collect bills decreases, and so does your revenue. When it comes to Accounts Receivable management, time is of the essence. Research led by the US Census Bureau brought by The Accounting Minute found out that after three months, 26% of invoices are uncollectible. Moreover, from six months, this percentage rises to 70% and to 90% when the invoice is twelve months old.

Unpaid invoices might affect staff salaries, supplies, rent and expenses for day-to-day operations. However, more importantly, it can lead to debt. SMEs tend to struggle the most without credit controllers to chase pending invoices. At the beginning of 2018, B2B invoice provider MarketInvoice revealed delays for more than 62% of invoices issued by UK small and medium enterprises in 2017. It represented over £21 billion of unpaid bills.

Kolleno’s solution provides your business with an intelligent system designed to process customer payments quickly, minimise and deal with late fees, and improve reporting, planning and forecasting. 

3. Nurture the future of your company 

It is increasingly essential for companies to consider their customers’ and clients’ journey and their preferred methods of communication. Therefore Kolleno’s seamless collection is based on omnichannel communication through telephone, mail, email, applications, chat functions and SMS. Also, this strategy relies on segmentation led by AI to determine the most appropriate methods to contact each of your customers. Automation helps identify behavioural patterns and build up essential data to manage collections. We provide daily performance analysis to assess and improve collection services through reports and analytics. 

4. Nurture your relationship with your customers 

Through a seamless payment experience, automation ensures better engagement among your customers. Offer your clients tailored payment plans and options, a straightforward Payment Portal and total convenience to pay via any payment methods (Stripe, Direct Debit, ACH or EE transfer payments). More efficient and personalised, your interactions with your customers are optimised. Furthermore, by freeing you from the weight of manual Accounts Receivable management, Kolleno helps you focus on positive customer interactions and added-value tasks.

5. Nurture your team

As an exhausting and repetitive task, manual data entry can negatively impact your team’s morale and, therefore, their productivity. Also, think about the time you spend daily processing and chasing payments and customers and sorting out invoices. Automation drastically reduces the time you would generally invest in these time-consuming and no-added value talks. Moreover, reduce inefficiency and human error with Kolleno’s efficient combination of tools, systems, and resources. Digitalise your data and administrative operations and let your company foster a culture of innovation. Unleash your team’s potential to focus on strategic and creative projects and positive customer interactions, which actually drive revenue. Lift your team’s spirits and empower them to boost employee engagement! Let them focus on the most rewarding aspects of their jobs. 

Level up. Switch to automating your Accounts Receivable management today with Kolleno for seamless onboarding, omnichannel communication with your customers, innovative invoice management, simple payment processes and reports and analytics. Increase your productivity, enhance efficiency and get paid faster. Take advantage of our all-encompassing technology and start enjoying your work again. 

Dimitri Raziev
Dimitri
Founder, Kolleno
Are you looking to centralize your payments, collections and reconciliation in one place? Book a demo to learn how Kolleno helps businesses to free up resources and focus on core priorities.