This is a transactional world. Here everything is dealt with money. Either you have to pay and get things done, or get the service and make your payment. Am I right?
Imagine a situation when people breach this rule! What if your client doesn't make payments? That too for a longer time!! Most horrible thing to hear right?
That's why we say "Collection of your accounts receivable is very important".
Now coming to the point! As accounts receivable is very important, what if a human error occurs while collecting them? There are many challenges like this occurring while collecting the accounts receivable manually. First, let's see about them.
Most organizations find a lag in payments of up to 90 days. Your business's cash flow depends on these customer payments, so any delay can negatively affect this. Furthermore, it can affect your forecasting budget, revenue, and profit goals, as well as overall growth.
Your company's receivables are like a wacky screw in its machinery. Your whole engine can be inefficient and slow if not wound correctly.
Its many moving parts make Accounts Receivables a challenge. It begins with creating invoices and contracts, collecting signatures, and accommodating any changes. A cherry of difficulty sits precariously on top of all of this. The communication of information between teams, customers, and stakeholders has resulted in disputes with many of our clients.
Running your dunning process manually, not only causes disputes but also pushes you into big 'quicksand-like missing out on the accounts receivable to be recovered; Missing follow-up. Also, if you don't have a centralized Accounts Management System, you have to grub into the pile of invoices you've stored so far and find the right one.
Here comes the hero to save your business - Accounts Receivable Automation!
But many people feel it is too costly to adopt. To remove that major drawback, we've introduced Maxyfi!
Maxyfi is the world's first AI-powered automation to recover the accounts receivable of your company with powerful collection strategies and repeated follow-ups.
When your competition sits on the hem of your target audience circle with hawk eyes, you lose a sale in a matter of seconds. Imagine trying to stay efficient while juggling costly paperwork.
In addition to a high risk of human error, such manual work has an increased processing cost as your paperwork heats every table in your office space. It takes a great deal of time to accomplish such a task.
Accounts Receivable (AR) automation refers to the use of technology to automate different operations in the Accounts Receivable process, such as invoice creation, payment collection, and overdue payments. This can help save expenses and boost efficiency in a variety of ways:
Improved data accuracy: Automated Accounts Receivable solutions eliminate the possibility of manual errors, such as incorrect invoicing, double payment processing, and misapplied payments, which can result in greater costs and lower efficiency.
Increased productivity: Because automated Accounts Receivable systems may automate monotonous operations, staff can devote more time to higher-value activities like customer relationship management and dispute resolution.
Improved cash flow: Accounts Receivable Automation systems may give real-time visibility into cash inflows, allowing you to make more informed working capital management decisions and perhaps decreasing the need for external funding.
Improved customer satisfaction: Automated Accounts Receivable systems can simplify the payment process, making it easier for your customers to pay invoices, increasing customer satisfaction and loyalty.
Cost savings: Automated AR management software can save money on printing and postage, bank fees, and staff time that would otherwise be spent on manual data input, paper-based invoicing, and manual payment processing.
Finally, by automating your accounts receivable process, you can create a more efficient, cost-effective, and customer-friendly accounts receivable process, which leads to greater financial performance and customer relationships.
The use of technology to streamline and automate the process of collecting payments from customers for products or services provided is known as accounts receivable automation. This may guarantee that dues are collected as quickly as possible by eliminating manual procedures, decreasing mistakes, and enhancing efficiency.
Just put yourself in the shoes of your customer. What if someone sends you regular reminders via calls, SMS, and email and pushes you to make your payment for the dues?
Here are a few ways that our accounts receivable automation might help you assure timely dues collection:
Invoicing Automation: Invoicing automation can reduce the time it takes to produce and send invoices to customers. Invoices can be prepared and sent out quickly and precisely, cutting down on the time it takes to collect payments.
Electronic Payment Processing: Automation can help with electronic payment processing, which can help to speed up the payment process. Customers can make safe online payments quickly and simply, reducing the time it takes to collect payments.
Reminder Notifications: Customers can be sent automated reminder notifications to remind them of upcoming due dates and past-due payments. This can help ensure on-time payment and enhance the overall pace of the collecting process.
Improved Data Accuracy: Automation can lower the chance of mistakes while also improving data accuracy. Payment information can be automatically recorded and updated by automated systems, decreasing the time and effort necessary to manually update information.
Overall, accounts receivable automation has the potential to considerably improve dues collection by reducing manual processes, enhancing data quality, and enabling electronic payment processing. This might result in increased cash flow and better financial management for your company.
According to Tungsten Network, paper-based accounts receivable processes increase the “Order To Cash” cycle by approximately 90 days per invoice because of handling customer inquiries, managing changes, and tracking data.
However, automating streamlines the entire process. In the workplace where staff moves paperwork from one desk to another, multiple clicks after hours are reduced to just one. Savings on these expenses amount to 60%-80% of the firm's costs, generating greater liquidity.
Accounts Receivable automation can assist streamline cash flow in your Accounts Receivable Process in a few ways:
Invoicing: Automated invoicing eliminates manual errors, accelerates the invoicing process, and assures that invoices are sent to customers on time. This increases the probability of timely payments and guarantees that cash flow is not interrupted.
Payment collection: AR management software can help to automate payment collection by giving customers a variety of payment options, such as online payments, direct debit, and credit card payments. This raises the likelihood of customers paying on time, which improves cash flow.
Cash application: Accounts Receivable Automation can automate the process of applying customer payments to their corresponding invoices. This reduces the risk of wrong payments and disputes by eliminating manual errors, speeding up the process, and ensuring that customer payments are applied correctly.
Improved visibility: Automated ar management software improves visibility by providing real-time insight across your whole accounts receivable process, from invoicing to payment reception. This enables you to manage your cash flow, track payment status, and identify any possible issues that may impact cash flow.
Overall, automated ar management software helps to streamline your accounts receivable process, decreases manual errors, and improves payment collection efficiency. This enables you to enhance your cash flow and make more informed financial management decisions.
Everyone in your company will refer to the same data and work with the same information when all data sources are loaded in one place. Here you can avoid confusion and misinterpretation of data.
Thus, your employees will have more time to strategize the future of your business when they don't have to worry about the Accounts Receivable process daily.
Accounts receivable automation streamlines AR management by simplifying the whole process from invoice generation to payment collection. This is accomplished by implementing our software solution that automates all your manual activities, removing the necessity for manual entry and lowering the probability of mistakes. Our software also provides a single database for all accounts receivable data, allowing qualified workers easy access.
Invoices can be created automatically and their status can be tracked in real-time with our accounts receivable software. Additionally, the system interfaces with other financial systems, such as ERP or accounting software, to reduce manual data entry and verify data correctness.
The centralized administration of accounts receivable enables for real-time reporting and tracking of customer payment history, minimizing the time and effort required to manually track payments. This also helps to lower the risk of late payments and bad debt.
Maxyfi's integration with your accounting books will ensure a streamlined cash flow for your company.
Other than these, you'll have much more benefits that will take your business to the next level. Upgrade your company with Maxyfi and maximize your cash flow.
To know more about Automated Accounts Receivable Software tips, follow up with Maxyfi blogs.