Automating the accounts receivable (AR) process offers small and medium-sized B2B companies a myriad of benefits, including better cash flow, reduced costs, and less stress. That’s why 93 percent of businesses surveyed by PYMNTS and American Express deemed automation necessary and believed manual systems did not meet their needs.
AR automation is quickly growing from a luxury to a necessity for companies across an array of industries looking to keep pace with or eclipse the competition. Like everything else, however, AR automation works only when choosing the right platform.
Here are five essential features of effective AR automation software:
1. Smart invoicing
Preparing invoices is a time-consuming and, occasionally, fruitless endeavor. Vanguard reports the average paper invoice takes 15 steps to complete. Worse, CFO.com found that 11 percent of invoices go unreceived.
The right AR software doesn’t just take the manual labor out of invoicing – it revolutionizes your accounts receivable processes, streamlining the workflow to mitigate errors. And smart invoicing enables you to create, send, and track unique invoices, branded with your company’s logo, that enables your customers to make seamless payments through a portal in seconds.
2. Embedded payment platform
Not all AR platforms are created equal. Some need additional payment processes that cause friction – the very thing automation is supposed to eliminate – and may contribute to disputes between you and your customers.
Partner with an AR software company that controls all aspects of payments and uses a single, secure embedded platform that enables customers to pay their invoices with the click of a button. The easier it is for your customers to pay, the quicker you get paid, reducing your DSO (Days Sales Outstanding) and allowing you to put funds right back into the growth of your business.
3. Simple installation
Automation doesn’t have to be difficult. The right AR platform enables you to go from setup to operation in a matter of minutes and requires minimal training, enabling you and your team to start using the software immediately rather than waiting hours, or in some cases, days.
AR automation is supposed to make life easier for B2B companies. And that starts with installation and usage.
4. Simple integration
Using automation to streamline your AR process doesn’t mean you have to do away with existing accounting software such as QuickBooks or Xero.
Rather, the right platform enhances those programs by picking up where they left off and providing you with extra features, such as DSO monitoring and buyer portals with invoice histories. This enables you to improve your accounts receivable without eliminating something that works for you.
5. Enhanced customer experience
Automating your company’s AR process should make life easier for you and your customers as well. That way, they’ll have no problem submitting their payments on time.
Effective AR automation offers customers a variety of speedy and secure payment methods through the ACH (Automated Clearing House) network or with credit and debit cards. Buyer-controlled payment wallets and self-service portals make communicating with customers easier and more efficient than ever, leading to fewer mistakes and less confusion. And with real-time payment tracking, you’ll be able to know when a typically punctual customer has missed their due date. This enables you to proactively reach out and learn of any issues you can help with.
Bill360 is a pioneer in the AR automation space – the first payment platform purpose-built for small to medium-sized B2B companies. We offer unique data solutions in a secure, embedded platform for ACH and card processing that make it easier for customers to pay you on time.
Bill360 syncs up to programs like QuickBooks and Xero in a matter of minutes and requires less than an hour of training. We also offer features they don’t, such as buyer portals, fully integrated payments and AR support, and a secure, buyer-managed payment wallet.
Contact Bill360 to learn about our free 90-day trial and discover firsthand why we’re the preferred partner in AR automation.
