When distribution and manufacturing businesses sell products, they incur hard costs for inventory and labor. And when service organizations secure approval for a new project, they allocate costly resources. Accounts receivable software can help them get paid faster and avoid cash flow dry spells.
Automated Collections
Automated collections are a vital component of a compelling accounts receivable system. By implementing automated payments, you can reduce bad debt while freeing up time and resources for your team to focus on maximizing cash flow. Whether you’re in the market for an AR solution that incorporates all these functions or just one or two, start by setting clear goals and ensuring your team is on board. Then, compare solutions on G2, find a shortlist that meets your needs, and reach out to book demos to help you make your final decision. Using AR management software that integrates payment, documentation, and communication in a single centralized location makes it easy for teams to collaborate regardless of where they are located. This enables 5x faster approvals and ensures all invoice elements are tracked, accounted for, and validated. It also enables automated dunning emails and payment retries that learn and get smarter over time, allowing you to reduce failed payments that lead to involuntary customer churn and lost revenue. Invest in an automated payments and AR automation process today to streamline your operations.
Automated Invoicing
Accounts receivable software improves efficiency by reducing the number of manual steps in the invoice processing cycle. Manually opening envelopes and typing information into a database is time-consuming and costly, especially when prone to human error. An automated invoice management solution reduces these inefficiencies, allowing accounts payable and finance teams to focus on more pressing tasks. With a cloud-based AP automation management tool, all invoice elements are managed in one central location and accessible to everyone on the team – even if they work from different locations. Moreover, the best invoice automation tools allow you to customize your enterprise’s workflows and processing rules. This flexibility enables you to streamline invoicing processes, slash invoice processing costs, and drive continuous improvement by identifying areas for improvement. Some solutions offer unlimited users for a flat fee, making sharing responsibilities and reports across departments easy. These benefits bolster business agility and help your organization to grow. It’s worth remembering, however, that automating invoicing should not replace your existing procedures but enhance them.
Automated Payments
Accounts receivable automation software helps a business accelerate payment by eliminating manual processes and providing customers with online payment methods that save time, money, and frustration. Payment integration also syncs financial reporting in real time so numbers are accurate across platforms. Whether your business is a distributor, manufacturer, or service provider, it pays to streamline invoicing and collections. A successful end-to-end accounts receivable process supports a healthy cash flow, positive client relationships, and financial stability. Choosing an accounting product with a robust suite of accounts payable features that meet your needs is the first step to improving your accounts receivable process. Ensure the solution integrates with your ERP and 3rd-party apps for seamless information transfer. A cloud-based system that enables multiple team members to work together is a bonus, especially for distributed teams. Look for a solution that offers unlimited users for one flat fee and doesn’t charge extra to create user groups or share reports with different departments. This keeps the budget in check and avoids unforeseen costs down the road.
Real-Time Visibility into Outstanding Balances
Unlock the full potential of your accounts receivable team with real-time visibility into outstanding balances. Streamline issuing, tracking, custom electronic invoice and statement delivery, and payment processing in one powerful solution. Reduce DSO and rework time with automated workflows prioritizing and identifying risky receivables. Streamline communication with customers through built-in customer portals that accept omnichannel payments, including credit card and instant bank transfers. Automated collection management reduces the manual chasing and negotiation needed to collect on receivables by matching customer payments to their respective invoices. This ensures that invoices are always paid promptly while allowing for early payment discounts to be captured and cash flow improved. Improved working capital is a critical factor in driving growth and investment. A solid grasp of your financial situation through accounts receivable software can help businesses make decisions such as equipment purchases, new employee hires, or facility expansion confidently and efficiently. This is only possible with the insights provided by a well-performing accounts receivable function. Talk to an expert advisor to see how your business can streamline its processes and optimize its operations.
Customer Relationship Management
Accounts receivable, or AR, is a critical element of the general ledger (GL) and shows money owed to a company by customers who have purchased goods or services on credit. Compelling accounts receivable management helps a business cut financing charges, reduce debt, and generate cash flow that can be used to hike dividends, invest in capital expenditures, increase risk capital, or offer new products and services. Accounting software vendors provide tools for automating invoicing, tracking payments, and identifying delinquent accounts. The software also enables users to create an aging report that shows the number of unpaid invoices, their total value, and how long they’ve been outstanding. Payment automation solutions allow businesses to accept online customer payments, including credit cards, debit cards, EFT payments, ACH payments, and e-transfers. These systems integrate with the business’s accounting system to automatically reconcile and update the financial records when payments are made. Accounts payable automation solutions are designed to streamline the entire order-to-cash process by integrating vendor communication and documentation, corporate credit cards, and expense management into a single platform. This helps a restaurant’s accounts payable (AP) teams improve transparency, control, and efficiency.