5 Pros To Consider When Using Maxyfi - Accounts Receivable Software

There may be many reasons for people to transform their Accounts Receivable Process into automated by an accounts receivable process.   

To be more precise, I’ll first take you through the cons that business owners and some of you reading this article may also face those struggles and feel very difficult to overcome.   

 

Major Struggles that people face with Traditional Accounts Receivable Process  

1. Inefficiency in Tracking and Maintaining:  

Traditional manual accounts receivable processes, which require manual data input and paper-based record-keeping, can be time-consuming and labor-intensive. You may be tracking and maintaining your customer and invoice data manually, which takes up a lot of your time and limits you from focusing on your business and cash flow growth, as well as high-value transactions.  

This could cause delays and inefficiencies in your cash flow and revenue, which directly affects your accounts receivable process.  

 

2. Easy to Error-prone:  

The manual accounts receivable process is prone to mistakes, such as incorrect data entry or misplacing essential documents. Many business owners, including you, have faced and continue to face these challenges. Manual data entry errors such as entering the wrong customer's name or contact information, sending the wrong invoice, and irregular follow-ups are just a few examples of how errors in your accounts receivable process may quickly become a major issue. 

These mistakes can result in erroneous billing or payment records, which can generate troubles with customers and have influenced the accuracy of financial accounts.  

 

3. Lack of real-time visibility:  

It might be tough to acquire a real-time perspective of your accounts receivable using traditional, manual processes. When a customer makes a payment, your team changes the payment status of that specific customer immediately after they make the payment manually; it will take 2 to 3 days to notify you of the payment status.   

How would your consumer feel if you issue an invoice for a payment that was paid late due to limited and no real-time visibility?  

This might make it more difficult for you to manage your cash flow and make wise business decisions.  

 

4. Limited and Less Scalability:  

Manual accounts receivable processes may be appropriate for small organizations, but as the business expands, they can become increasingly difficult and inefficient. If you have a small customer base, the manual process is sufficient.   

What if you're expanding your business and your customer base increases? Are the manual accounts receivable process capable of handling all of the accounting and customer data?  

Certainly not. This would undoubtedly restrict your company's capacity to expand and respond to shifting customer requirements.  

 

5. Privacy and Security risks:  

Traditional manual accounts receivable processes might expose sensitive financial data to theft or loss. Manually managing and maintaining all customer data such as name, contact information, and, most critically, payment details using spreadsheets is similar to placing your hand inside a crocodile's jaws knowing it would shred your hand apart.  

Physical documents especially about customer payments might be missing or even stolen, and manual data input can create room for fraud or mistakes.  

 

Major Advantages that people experience with Accounts Receivable Software  

We've already discussed the disadvantages (cons) of using the traditional accounts receivable process (using spreadsheets to handle and maintain overall accounts receivable data) and the difficulties that you may have while doing so. This is a serious problem for your company's revenue growth.  

This article not only describes the disadvantages and difficulties that individuals encounter; we also provide solutions to all of the difficulties that you have when managing and handling your accounts receivable process.  

  

1. Increased efficiency:  

A majority of your valuable time will be spent monitoring and maintaining your accounts receivable and customer data. Manually preparing invoices and sending them to customers for reminding them about payments will eat up a lot of your time, which is a severe problem that requires prompt attention.  

In terms of accounts receivable software, it automates numerous manual tasks, including  

• creating invoices  

• payment tracking,  

• reconciling accounts.  

This reduces the time and effort required to track and maintain your entire accounts receivable process and frees up your team to focus on other high-priority tasks and high-value transactions.  

 

2. Improved accuracy:  

Using spreadsheets and manual invoice reminders will almost constantly result in some errors, as people are prone to making mistakes. This is unavoidable, but it can be transformed. Consider missing a certain amount in your receivables or sending an invoice reminder to the wrong person. This may even lead to disputes, which have a direct impact on your company's income and image.  

Automation of your accounts receivable process can help you eliminate errors and improve the consistency of your financial records.  

For example;  

The software can produce invoices automatically based on established invoicing rates and terms, eliminating the possibility of errors.  

 

3. Enhanced visibility:  

Lack of visibility in your accounts receivable process creates a lot of struggles in managing your accounts receivable.   

This can be triggered by a variety of situations, including  

• poor record-keeping,   

• a lack of customer communication,   

• Weak systems and processes for tracking and monitoring receivables.  

It can also cause customer misunderstandings and disputes, as well as economic losses for your organization.  

With the proper and best accounts receivable software, you can easily track and monitor the status of invoices and payments. This can help you identify any issues or delays more quickly and take timely action to resolve them.  

 

4. Robust security:  

Even so, the majority of you are still using manual and traditional accounts receivable processes as you are concerned about the privacy and security of your customer's payment information.  

It is not a problem to be alert. However, being overly suspicious will cost you some valuable possibilities. There are several automation solutions on the market, but you must take precautions while picking the best and most secure accounts receivable automation software for your company.  

Robust security features are often included in the best accounts receivable software to secure sensitive financial data. This can reduce the risk of data breaches or unauthorized access to sensitive information.  

 

5. Improved cash flow:  

Accounts receivable cash flow can be increased by  

• Evaluating your credit terms or payments due in a certain number of days, such as net 15 or net 30.  

• Sending invoices immediately is essential.  

• Regularly check your accounts receivable to handle concerns as they arise.  

• Streamlining your accounts payable process.  

All of the features listed above may be obtained by using accounts receivable automation software to manage and track all of your receivables.  

You may optimize your cash flow and forecast when you will get payment by automating your accounts receivable process and tracking payments more effectively. This can assist you in making better business decisions and managing your financial resources.  

 

Maxyfi for your Accounts Receivable  

You can improve and empower your organization with Maxyfi Accounts Receivable Automation Software by using efficient collections, robust processes, and customizable templates. The following are some of the pros of using Maxyfi. 

 

1. Automated reminders for your Accounts Receivable Process  

Accounts receivable automated reminders are a system that sends customers invoice reminders regularly to remind them to pay their outstanding debts. This can help you in managing your accounts receivable process more efficiently by ensuring that invoices are paid on time and lowering the number of outstanding bills.  

Automated reminders may be sent through email or SMS and can include   

• the amount owed,  

• the invoice number,  

• other pertinent information.   

This can help to strengthen your company's relationship with your customers by displaying that you’re proactive in managing your accounts receivable and is dedicated to maintaining a great working relationship.  

Maxyfi offers an endless number of pre-defined templates to match workflow needs, as well as customization and automatic reminders to boost productivity. You can also create one from scratch!  

 

2. Outbound Email & SMS settings for efficient Accounts Receivable  

Outbound email and SMS in accounts receivable refers to the practice of sending emails and text messages to customers to remind them of missed payments or to provide account information.  

• Payment deadlines,  

• payment reminders,  

• account modifications,  

Outbound email and SMS can assist you in managing your accounts receivable process and keeping your customers informed about their invoices.  

Maxyfi allows you to configure your business email and SMS gateway credentials, which determine where the email/SMS from your business account is delivered.  

 

3. Workflow Management for your Accounts Receivable Process  

Workflow management in accounts receivable is the process of monitoring and organizing the flow of work related to an organization's handling of incoming payments.   

• Invoicing customers,   

• following up on missed payments,   

• and applying payments to accounts.  

Workflow management in accounts receivable contributes to the smooth and effective functioning of the accounts receivable process as well as the timely receipt of payments.  

Robust workflows for tracking high-priority prospects and tailoring follow-up communications with sluggish or non-paying customers. Overall, it guarantees that any outstanding debts are recovered by your organization.  

 

4. Dashboard with Real-time Analytics  

The Maxyfi dashboard allows you to assess and monitor your accounts receivable performance in real-time, providing you with insights into your business.  

• customer payment patterns  

• overdue invoices,  

• other essential metrics.  

The dashboard also visualizes data, allowing you to quickly identify and address areas for improvement.  

Maxyfi AR CRM has a strong and comprehensive dashboard that gives an in-depth view of the system.  

• Overdue Summary,  

• Aging Summary,  

• DSO,  

• Needs Action,  

• Top Debtors,  

• Customer Segmented view in the collection phase.  

 

Conclusion  

You should now have a better understanding of how to simply remove human errors and delays while enhancing and extending your business's cash flow and productivity. If anything is still holding you back, try it for free.  

By reading the Maxyfi blogs, you can simply understand the magic of accounts receivable automation.