Cash flow is a crucial component of any organization. The most important aspect is the collection of dues on time. Inefficient accounts receivable management, either via faulty manual procedure or improper automation, can complicate the entire process. To avoid human mistakes, inaccuracies, delays, and clogging due to collections, organizations are incorporating the practice of efficient AR automation. Organizations have gradually become aware of the benefits of automated accounts receivable solutions. There are very few of them that know the tips to streamline AR automation with top-notch practices.
Smooth integration of tech tools
When it is decided to include accounts receivable software, the first question that one must ask is whether the tool will integrate seamlessly into the existing tech stack. In case the answer is no, it might be a bigger problem, time-consuming, and even expensive. Shifting to another tool becomes the worst nightmare. Thus, it is vital to check out the integration aspect before considering the inclusion of any AR automation tool.
Motivating advance payments and a hassle-free payment experience
Establishing methods of payment conditions where incentives for customers to pay early is an excellent option. Failure to make the timely payment will follow penalties for consistent late payers. Thus, it is recommended to pick the AR automation software to render upfront or early payment conditions.
Assuring a seamless payment experience is the critical component in automating the invoice to cash. Furthermore, AR automation also renders flexibility because of multiple payment options. Thus, the multiple payment gateways help to enhance conversion as well as retention rates. Integrating payment gateways into existing billing and receivable software enables payment speed by almost 35%.
Quicker dispute solution
The most common reason for non-payments and rising dues are unresolved disputes. It is necessary to monitor disputes arising out of different areas, understand the reasons behind them, and try to find quick solutions so that delayed collections can be avoided. When effective AR automation software is incorporated, it can assist in faster dispute resolution by catering to the following.
- Handling escalation and follow-up to the process rapidly
- Resolve disputes with quicker turnaround time involving specific stakeholders
- Monitor daily failed payments to take faster action against those invoices
Setting up an Accounts Receivable (AR) dashboard
To maintain easy tracking, creating dashboards for accounts receivable analytics seems a pretty good idea. Maintaining and monitoring an AR dashboard will help to distinguish between a good and an unhealthy cash flow. This can be determined by measuring the correct KPIs and identifying the required patterns. An intuitive accounts receivable dashboard gives a comprehensive view of the collection performance and facilitates team members to initiate data-supported decisions.
Conclusion
Handling accounts receivable can be a tricky task, especially when someone is new to it. It ensures customers pay the invoices on time with minimal effort while curtailing expenses and without causing any challenges. The process can be made efficient and straightforward with proper AR automation. There is a need to invest in a reliable integrated accounts receivable and billing system that can be easily included with the existing tech stack.