Why you need a perfect AR workflow?
Having outstanding accounts receivable can really hurt your cash flow preventing your business from investing in growth opportunities and sometimes even undermining your ability to cover day-to-day expenses. That is why it is crucial to have an effective A/R management system in place.
In Accounts Receivables it is important to have a predefined sequence of actions that you take for an overdue account. These actions can include communications through email, SMS and phone calls. Having such a standard process in place is also known as a Workflow. Workflows are the key to efficiency, consistency, transparency, and accountability in a business.
There are a few ways to set up your perfect A/R workflow. One of them is to choose to use a software system that would automate all the processes for you. Learn more about the benefits of automating your AR Management below!
Less Human Error
The accounts receivable process has many steps that involve multiple stakeholders. These processes are prone to all kinds of delays and mistakes: from incorrect invoice details to employees being busy with their long to-do lists and getting invoice lost in the shuffle. Such delays in business processes ultimately affect your company’s cash flow and careless mistakes can cost your business valuable client relationship. However, the automation of Accounts Receivables management allows you to avoid careless mistakes in your invoices and streamline an automated workflow. As a result, your invoices can be created accurately and sent to the customers digitally and automatically.
Managing Accounts Receivables and chasing late payments involve a lot of manual and time-consuming actions from your employees and thus can be a drain on your business resources. Automating your Accounts Receivables is like having a couple of extra accounting members on your team. The use of AR software would not only allow you to automate manual processes but also level up your credit control. Depending on the choice of your AR software, you can do much more in less time with the use of such features as bulk communication and automated outbound sequences. As a result, your employees can focus on a higher value-adding activities.
Valuable Data Insights
When using a software to automate your AR processes, you are not only gaining a 360 view on your accounts receivables, but you will benefit from valuable insights into your book performance. Having an accounting software in place, will allow you to track more accurate and timely data, which will enable you to learn more about your customers payment behaviour. Having access at such data will help your business to come up with the most effective strategies tailored to specific customers to accelerate outstanding payments.
The use of an automated solution speeds up the processes not only for your business but also for your customers in many ways. For instance, the use of digital tools can make a tremendous difference in terms of empowering your clients to pay on time. Online portals and payment systems will give your clients a very simple way to complete the outstanding payment.
All in all, AR Automation will eventually lead your business to get paid faster while maintaining a positive customer experience.