If you are looking for a way to improve your business and to avoid any problem relating to the cash flow, accounts receivable automation might be the solution for you. Take a look at the functions and benefits of A/R automation given in this article to see how it can improve the processes and help your company.
What is an Accounts Receivable Automation System?
It is a software programme that tracks and assist with AR functions. As a result of using the software, many of the manual tasks will be automated, from issuing reminders to categorizing invoices. You can easily convert your AR system into automated with the help of an accounts receivable automation provider.
Functions of the Software
There are many key functions that an A/R software will be able to perform. One of them is the ability to send email invoices. Email invoices has the ability to arrive on the same day as the sent and therefore reduce the turnover time, improving your communication with the customer. An AR system also allow the clerks the categorize the invoices – either by age or by client – making it easy to retrieve and analyse them in future. It also maintains a both up-to-date and an accurate system with regard to each customer. The system also records all the payments making it easier for you to keep track of them.
Benefits of the Software
Here are some of the main advantages you will enjoy with this software.
Increased Performance is one of the main advantages. Your system is more prone to errors when it is manual as you will have to go through spreadsheets and written notes every day. But when using the software, you will get accurate details about the customers and invoices. It will be easy to update the system and therefore you will have timely and accurate data lists. With the right software, your staff too will be able to perform to their best. When skilled staff are given the right tools they can achieve the company goals in no time.
Another advantage is the reduced number of work you and your staff has to perform. Since most of the tasks can be set up to happen automatically, there will be no need to worry about forgetting to send emails or reminders to your customers. Before a customer’s due date of payment, you can set up to send them a reminder email two or three days before the date. You can do the same in case they forget to pay on time.
Since all the customer information and communication logs are recorded, you can go back to them anytime you need to communicate with the customers or to analyse the data in future. Not only will your communication with the customer will improve but you will also be able to retrieve the past data at any time for analysis if needed.
More than manual system, a software will be able to improve your AR and keep track of all your records without any trouble.