Accounts Receivable Software: Working smarter (not harder) to boost cash flow

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We're pretty sure that absolutely no one in your accounts receivable department wants to know about what more they can do to streamline AR processes. No one understands the importance of cash flow quite like your AR team - or the pressure of the collections process come month-end.

So, for a team already at capacity, what options do you have to boost cash flow and improve the efficiency and efficacy of your internal AR workflow? The short answer is implementing automated AR software to work smarter (not harder). For a more in-depth look into AR automation technology, head over to our credit controller's guide to accounts receivable automation software.

But for now, let's look at the most significant benefits of automating AR processes and how it redefines the role of the credit controller towards more strategic, impactful and intentional tasks.

Improved efficiency and streamlined workflow

Automation helps the AR team reap the benefits of their labor without being subject to hours of repetitive, manual tasks. By leveraging AR software that supports your ERP, AR teams can accurately streamline the entire AR process.

This includes anything from automatically sending all required documentation to generating and sending statements, credit notes, invoices, delivery notes and all supporting documents on autopilot. Ultimately, automating accounts receivable is the catalyst for effective AR management processes. This is particularly important and helpful in two areas:
    • Reducing errors: Errors in the AR process don't need to be inevitable. Not with modern technology and tools at your disposal. By automating AR processes, teams can benefit from error-free workflows, building trust and transparency across the organization and with customers.
    • Improving cash flow: The shorter the credit-to-cash cycle, the more beneficial it is for business. By providing your AR team with the right tools, you're essentially investing in improved cash flow and accelerated payment processing, making it easier to process customer payments and predict financial outcomes in the future.

Better resource application

What sounds better for business: for your AR team to spend 40 hours a week chasing down late payments and tracking down invoices or investing that time into complex, mission-critical tasks that improve DSO and CEI? Our money's on the latter. Tedious, time-consuming and resource-intensive manual tasks are the Achilles heel of growth opportunity.

By automating AR processes, companies can shift their focus towards tasks that improve ROI. Better yet, with the additional time comes the added benefit of rich data, analytics and insights at your fingertips, helping the finance team make better decisions regarding payment trends, cash flow forecasting and accurate real-time collection data.

Enhanced customer experience
The AR process plays a significant role in customer relationships and customer experience. Nothing hurts a relationship quite as badly as chasing down money. Through leveraging AR automation software, credit controllers no longer need to compromise client relationships over getting paid on time.

Through collaboration and communication tools, customers can benefit from a seamless and efficient approach from invoicing to collections. For the customers that pay on time, there is an opportunity to better communicate with the accounts team. Moreover, they can rest assured that they'll receive error-free and transparent payment requests and instructions with all required documentation in a timely manner. This then allocates more time for the AR team to focus on the exceptions and outliers, helping reduce disputes.

Besides the most significant benefits to cash flow and cash flow forecasting, using AR automation helps businesses leverage their strengths towards critical business tasks, helping financial leaders make better-informed decisions and manage quintessential customer-facing processes in the most effective and efficient way possible.

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