If your AR department is ready to move forward to adopt a modern AR system that is fit for the 21st century, that is great news! It means that there are a whole lot of managing account receivables tasks that your staff will never have to do again.
That means no more wasting time, and no more preventing talented employees from focusing on essential tasks. By automating routine practices and making it simple for staff members to concentrate on other vital elements of the business, you can entirely revolutionize the AR operation of your firm, increasing your revenue stream and improving your company’s reputation within your industry.
Here are five managing account receivables tasks that the AR department can forget about once it has adopted an automated system.
1.No More Snail Mail Invoicing
One of the top features of automated AR systems is that the need for paper invoices is eradicated. Electronic invoicing is speedy, simple to track, and, most importantly, is much more likely to get paid than paper invoices, which are often misplaced or put in the trash.
2.No More One-Off Reminders
Nonpaying customers often need reminding when it is time to make a payment. However, it can often be difficult to prioritize those reminders. Should you give priority to those whose account has been outstanding for the longest time? Or should you prioritize the ones whose balances are the highest?
By automating the reminder list and by customizing the messages, you can be certain every customer receives the appropriate reminder as and when necessary, with nobody accidentally being left out or added.
3.No More Manual Prioritizing of Collection Calls
It is not just payment reminders that are difficult to prioritize – collection calls are also a challenge, However, generating a list automatically will improve the success of the AR team and will keep revenue coming in a steady stream. An automated AR system will also enable you to track all balances from product purchase through the entire collection process without an excessive manual intervention, and this will minimize payment disputes and billing errors.
4.No More Manual Handling of Payments
With an online payment portal, customers will never have to send cash or paper checks again, and staff members won’t need to deal with payments manually. That will save everyone time and make receiving payments on time much more likely. By using an Internet portal or an Interactive Voice Response system, customers will be able to use their preferred payment methods using either a PC or mobile device and at the time and place of their own choosing.
5.Compiling Data and Sending Reports
Of course, accounts receivable isn’t only about collecting money. It is also about generating reports. Doing this manually takes a long time and is subject to human error. However, with automatic AR reporting, you will have better accuracy and a timelier generation of reports.
When you bear in mind that mistakes in invoicing and reporting can damage your reputation in the industry, having a more reliable account receivables system in place will make sure that your customers get a good impression of your business. By guaranteeing greater precision in your reports, you can improve customer relations and secure more repeat customers.
By automating all these purely administrative jobs when it comes to managing account receivables, you can free up your valuable staff members to deal with the other key elements of running the business and get better value for money overall. You will also improve accuracy and ensure that your customers have the best possible opportunities to improve their payment experience.