Accounts receivable (or as most of us prefer to call it, AR) plays a critical role in any business. After all, keeping track of who pays their bills and when is a pretty important part of managing your cash flow – and your customer communications.
However, it’s also one of those processes that can be a lot harder to keep up with than you might imagine. Matching payments to invoices as they come in can sometimes be tricky, and the process – at least for us mere humans – can be complicated, slow and labour-intensive.
But it turns out that AR is also something that technology is really good at. Sorting through hundreds or thousands of invoices, and matching up data is a something of a specialty of computers – so why not let them do all the hard work for you?
Still not convinced? Here are five reasons you should really think about automating your accounts receivable:
- It gives you a more up-to-date understanding of each customer account – Chasing up an invoice that’s already been paid (because it hasn’t been entered in the system yet) is extremely frustrating for both credit managers and customers. By automating AR, you can significantly reduce the lag between receiving a payment and when it is logged.
- It improves cashflow – Having an accurate understanding of who still owes you money will make it easier to make sure your spending matches your incoming funds. It will also help you keep more accurate records about what money you are owed.
- It reduces operational costs – While implementing AR automation will cost a bit up front, it won’t take long for it to pay for itself – and then start saving you money.
- It saves time – Automating time-consuming and repetitive tasks means that people have more time to spend on other tasks that computers can’t do, such as interacting with customers and thinking of creative ways to improve the business.
- It improves customer relationships – Since automation speeds up the AR process, it will help to ensure any client communications are accurate. And since it streamlines the process, it also means that you’ll have more time to talk to customers, work with them and build rapport.
Here at OnGuard, our credit management software can help you streamline the entire order to cash process, including accounts receivable. It captures documents in a variety of formats and does all the invoice matching and data entry for you. To find out more, please get in touch.