Like any good business owner, you want the best processes with the most efficient results for the least expense. You need your systems to be easy, efficient and comprehensive. One place to start is with the automation of your Accounts Receivable workflow. Some simple steps can give you great results.
Here are three major benefits of A/R automation:
It’s Automatic. As the term automation suggests, it’s something you set up and then let run by itself. With a great A/R automation system, you electronically send your invoice as soon as it’s created.
The “Pay Now” Link
Remember receiving bills in the mail? Smart companies included a return envelope and smarter companies paid for the postage of that return envelope. Studies proved that companies who provided the envelope were paid quicker than those who did not.
Let’s apply that logic to the 21st century. Bills are now mostly sent by email, and those electronic invoices that include a “Pay Now” link are more likely to get paid faster as customers are easily rerouted to payment options.
The bottom line; facilitating the process translates to quicker payments.
We all have those days when our inboxes get inundated. Your customer may have had the best intentions of clicking that payment link right away, but they got sidetracked, and your email isn’t top of mind or at the top of their emails anymore. A friendly reminder puts you back on top!
Thank You Email
A thoughtful way to leave a lasting impression on your customers is to follow up with a customized thank you email. Not only does it let them know you appreciate their business, but it also confirms their payment was received.
A great A/R automation system gives you the ability to set all these preferences. Just set it and forget it!
It Saves Time and Money
Time and money are interchangeable. If your employee spends less time collecting Accounts Receivables, that employee will have more time to perform other tasks.
A good A/R automated system can be set up to produce a variety of reports that show:
- How many invoices are past due?
- How many were paid today?
- How many have not even been seen yet?
Your automated system can track:
- When an invoice was opened
- How many times, and
- Who looked at it.
Laboriously chasing clients for unpaid invoices, or sifting through aging reports should not be taking up your valuable time. An app that can free you of those obligations will allow you to focus your attention on other aspects of your business.
It Gives You Better Control
Is your business at the mercy of its cash flow? Especially if you are on a very tight margin, you can’t pay your vendors until your customers pay you. Automating your A/R has proven results of increasing cash flow and reducing DSO. (Days Sales Outstanding).
Customizable reports show you what you want to see. Take control by first determining how you want to measure collections, and then set the reports to produce that information. Any good Accounts Receivable system will have a robust list of reports, all of which you can tweak for your specific needs.
Take control of who is involved in your A/R process. Is it you? Your A/R team? Your Sales Reps? Your Cash Manager? With all of the appropriate staff members having easy access to this customized program, there are no mysteries. Reps don’t have to wait for the A/R clerk to print out reports and send them call lists. Everything is available to everyone who needs it, when they need it.
These three great benefits of automating your A/R process are well worth your investment in a system. But aside from facilitating your life, it will also forge better business relationships; an added value that can’t be measured.
In today’s digital world, many of us conduct business with people we’ve never met. An A/R app, such as InvoiceSherpa, gives you the opportunity to engage with your customers on different levels.
So, which is better? A friendly email with an efficient payment process, or just another envelope in a pile of letters?