Eliminating Accounts Receivable Inefficiencies with Cutting-Edge Automation
Operational inefficiencies
in Accounts Receivables Management hinders a business’ cash flow and overall
financial stability. Here’s a look at some top AR
Inefficiencies, or should we say ‘Pain Points’ of the AR
Management Process that can be easily taken care of by implementing AR
Automation.
GETTING
PAID ON-TIME – ISN’T THAT THE ULTIMATE GOAL
At the cost of affecting your business’ bottom line, delay in
payment, in fact, provides your customers with free financing. According to
recent studies, many finance leaders cite manual processes as the biggest
challenge that affect timely payments. The key reason is that when AR Teams
handle collections manually, they have no centralized system to see which
customers need to be reminded about upcoming payments and at what time – the
manual processes make it extremely difficult for your AR Teams to promptly
follow up on overdue invoices.
Getting paid on time through manual processes relies heavily on
your ability and capacity to send out dunning letters and communicate with
customers through disjointed outreach efforts, such as phone, emails or
WhatsApp. There are two issues at play here, one, these are often difficult to
track and two, are difficult to scale. So, what businesses land up doing is
increase the headcount or go through a significant team restructuring, both of
which are not sustainable.
AR
Automation tools, such as Inebura, automate and deliver timely
notifications, prompts and dunning letters that helps your team focus on
collections priorities. Inebura delivers a solution that goes beyond simple
automation – it integrates the customer as a tenet of the collections process.
It connects your AR Team and your customers via a shared, online portal that
encourages real-time engagement and discussion. This insures that customers are
more empowered to offer inputs on their invoices and make timely payments.
INVOICE
ERRORS & MISTAKES – A TRUE EMBARASSMENT
Manual data entry to generate invoices can lead to disputes and
ultimately delay payments. Moreover, frequent errors in invoicing can not only
prove to be embarrassing, but it can also make the customer lose confidence in
your team and you.
Incorrect listing of information on invoices in manual
invoice-to-cash process is, in fact, one of the most common issue that AR Teams
face on a regular basis. When teams have to generate a ton of invoices, they’re
more likely to make mistakes, such as inputting the incorrect amount, wrong
invoice numbers, wrong GST number, incorrect discount etc. Such invoices can
delay payments as it takes time to respond to customer requests for changes/
clarifications and then apply revisions.
Most of the time, businesses get to know about such an error only
when the bill is due. And the customers are not willing to pay until the
correction has been made. That truly delays the process and results in higher
DSO.
AR Automation Software, such as Inebura, can integrate with your
existing ERP to automatically send invoices once they’ve been generated in the
accounting software. This ensures no manual intervention nor invoice-related
issues by reducing the possibility of data entry errors.
PROCESSING
OF PAPER-BASED RECEIVABLES – THEY’RE REALLY SLOWING YOU DOWN!
Whatever we might say about digital payments, check payments still
remain the most widely used method of payment. But, check payments are not
solely responsible for slowing you down, it’s also the way your business is
processing those checks. AR Teams land up spending resources, efforts and time
(and money) on manually accepting, processing, and posting checks.
Without AR Automation Software, such as Inebura, AR Teams spend
valuable time on manually processing and posting paper checks. This includes
keying in of associated customer information and payment details into their
back-office systems.
Inebura can help streamline check & remittance processing,
deposit and cash application from a single solution – scan checks and
remittance documents; view, associate and store all relevant information in a
central location that’s secure.
With Inebura, your AR Teams can drastically reduce the amount of
time they spend on processing paper checks and/ or any associated paper
remittance documents, the time they can utilize to work on value-added tasks.
The added benefit is lowering of costs and the lowering of risk associated with
tedious, error-prone tasks.
Original Source:
https://inebura.com/blog/accounts-receivable-inefficiencies-that-can-be-shown-the-door-by-automation
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