To fully analyze this, you need to understand the business needs and challenges, the impact it creates, and then the solution you should use to address these challenges.
Cash flow is an essential component of every Credit Based Business. Even your customers want to have their cash available for essential and prioritized payments. The most critical component of the Accounts Receivable Process is deciding where you should be on your customer's Prioritized List.
Most organizations will perform Account Receivable activity either through dedicated teams under CFO or Finance team doubling up as Accounts Receivable persons.
As said before, the Accounts receivable activity is the most critical function that converts your revenue into cash. Maintaining and managing these critical accounts receivable processes manually will consume most of your time, leaving no time for you to focus on your business development activities. This will result in severe cash flow problems for your organization.
When this function is done manually, it doesn't help to achieve steady cash flow due to the below reasons
Casual and irregular reminders – Lead to irregular messaging and increases payment time
Mistakes in communication – Bad experience with clients and ends in disputes
Time Consuming Activity – AR Teams performing repeated non-productive tasks
Person Dependent Activity - Unplanned delays and absence of a person will impact the process
Lack of auditing and transparency – No compliance check on the process followed.
Weak management insight and control – Delayed and outdated reporting to Management
Limited Client Response Medium – Clients can respond only through emails.
Accounts Receivable Automation should provide teams with the tools, processes, and information they need to operate more effectively, resulting in consistent and predictable cash flows. Furthermore, the data is collected centrally, allowing for total transparency, auditing, and multi-user collaboration.
Maxyfi is an Accounts Receivable Automation Software that helps organizations improve their cash flow and productivity while recovering their outstanding dues faster. With Maxyfi, your team will be at its peak efficiency with the perfect combination of automated (SMS, Email) follow-ups and human-centric customizable workflows.
With Maxyfi, you’ll get
1. Industry Best Process – Industry best Email, SMS & Call Follow-ups
2. Market-leading Workflows – Customizable and personalized pre-defined templates
3. Centralized Communication – Gives you complete audit, transparency, and collaboration.
4. Process-Oriented Approach – Stable and runs as BAU with multi-user handling feature
5. Real-time Insights, Reports, and Dashboards – Gives you better management insights and control
6. Customer Portal with rich option – Get 2x increased customer response and payment recovery.
Let's find out.
Xero, one of the most popular accounting and bookkeeping software (the purpose it was built for), also has an additional provision to send reminders via Email. But that’s just the tip of the iceberg in the Accounts Receivable Function.
Accounts Receivable Automation is a lot more and lets' see what it needs:
To summarize, an app that improves the Accounts Receivable Team's efficiency and productivity thereby improving the cash flow!
An application that improves the efficiency and productivity of the Accounts Receivable team thereby improving cash flow is considered to be one of the best Accounts Receivable Automation Software.
It's not Xero vs Maxyfi, rather it's the winning combination of Xero accounting books with Maxyfi which gives you the best of Accounting and Book Keeping (Xero accounting books) with the Best of Accounts Receivable Software (Maxyfi). Plus, it's just 1-Click integration between Xero Accounting Books and Maxyfi.
Sounds interesting, right? Book a demo on how seamlessly the accounts receivable automation connects and works with Xero.
Our Package starts at just $40 and has a 14 Day Free Trial. Start your AR Automation today.