Although many leaders in the accounts receivable world believe that simply having an accounting system in place is a viable strategy for their accounts receivables, this is definitely no longer the case. Having a digitized accounts receivables system is not just advisable; it is essential in the 21st century to cope with the demands of a modern company.
While other departments, such as marketing and sales, have been adopting digitized solutions for a number of years, which add extra value above and beyond traditional systems, AR departments have been lagging behind in this respect. However, with these solutions being highly effective in maximizing resources, money, and time while ensuring a more collaborative and transparent working environment, it is high time that accounts receivables moved into 2018.
The days of manual invoicing, spreadsheets and sticky notes are long gone. And, if you’re keen to snag that promotion that you’ve been coveting, introducing an effective system for accounts receivable could well make you the savior your department has been looking for.
Here are some key strategies that could see you being heralded as the hottest property in the AR department.
Technology Is Your Friend
There is nothing to fear in automation. Contrary to popular belief, adopting an automated accounts receivable system won’t decimate the department and cause redundancies. However, it will help to reduce costs, improve relationships with customers, and speed up payments. By automating routine tasks, a cutting-edge ARM solution will give your team time to focus on more important jobs and will facilitate the process of collecting payments.
Manual invoicing went out in the last millennium. It’s time for an e-invoicing system that is in the best interests of everyone – not only the company itself but also its clients. Transitioning to a new online system need not be time-consuming or difficult. By increasing the number of invoices delivered by e-mail by around 20 percent over several months and by contacting existing customers to persuade them to move from paper invoices to e-mailed ones, you can streamline the process effectively.
Confirming Receipts of Invoices
Nonpaying and late-paying customers all too often use the excuse, “I never got the invoice.” However, if you put an effective automated AR solution in place, you’ll never have this problem again. Invoices will be tracked from start to finish, so you’ll know precisely when the customer received the document.
By putting in place an automated accounts receivable solution that can send out payment reminders as soon as an invoice is overdue, you can eradicate the issues of manual contact. There’ll be no more delays and no more hassle – human intervention will no longer be required.
Evolving with Customers
Customers today are often much happier handling payments via the Internet, so make sure that you have an AR solution in place that accommodates that need. By being able to electronically make payments for their goods and services, you exponentially increase the number of payments you’ll receive on time and in full.
Modern payment portals ensure that customers can pay using their preferred payment method at the time and place of their choosing. Whether using a PC or mobile device, they’ll also be able to see all their invoice information over the Internet, and this improves the convenience for them, as well as for you.
By implementing these accounts receivable system strategies in your workplace, you could well find that you are on your path to a promotion. And, very soon, you could soon be reaping the rewards that you deserve within your company.