The word “automation” can be intimidating. Some think it’s incredibly expensive. Others believe only tech experts know how to use it.
None of that, however, is valid.
Automation can be a valuable resource for B2B companies of any size and across any industry, especially when it comes to smoothing out an accounts receivable (AR) process.
Here are five myths about AR automation – and why you shouldn’t believe any of them:
1. “All AR automation does is send reminders and alerts to customers.”
Yes, AR automation does reach out to customers about payments that are coming up or already past due. But it doesn’t stop there.
By creating invoices branded with your company’s logo in a matter of seconds, AR automation expedites the billing process and enables you to send out an invoice the moment work has been completed. It also reconciles paid invoices in a secure digital platform, which means no more time wasted rummaging through filing cabinets or arguing with a customer when the wrong invoice is linked to the wrong account.
You’ll be able to monitor your DSO (Days Sales Outstanding) in real time and learn how long it takes your company to get paid for its goods and services. Your dashboard’s payments-received graph tracks your cash flow and your customers’ payment methods, allowing you to keep a close eye on processing fees. For your customers, AR automation sets up a digital wallet to store banking information and preferred payment methods through Automated Clearing House (ACH) or a card. They’ll appreciate the ease of paying bills by clicking a button.
AutoPay makes the payment process even simpler by allowing you to automatically draft recurring fees via a customer’s checking account or card. You’ll always get paid on time, enabling you to better predict cash and flow and make sound, well-informed business decisions, and your customer doesn’t have to worry about late fees.
2. “I can’t afford AR automation.”
AR automation sounds very high-tech. To some, very high-tech can be very expensive, especially for B2B companies with limited resources.
The right AR automation should expedite the billing and payment process at very little net cost to you. Whether we’re talking about monthly charges or processing fees, you shouldn’t have to pay an exorbitant amount to make your business more efficient. After all, this software was created to help companies like yours invigorate cash flow and invest in your business. Why negate that by charging huge costs? With Atradius reporting that 55% of B2B payments across North America were late in 2023, the real cost to your company is not putting measures in place that make for a smooth AR process.
3. “I don’t know anything about technology and won’t be able to use it.”
Those who own a small business or run its finance department may be turned off by AR automation. After all, you’re a marketer, accountant, or commercial printer. You're not a tech expert.
AR automation was created to make your life easier. Consequently, the right AR platform has a clean dashboard that’s easy to read and even easier to navigate, requiring very little training regardless of the user’s technical knowhow.
The right AR platform should enable you to use the software in less than an hour. Your provider should make onboarding as easy as possible by walking you through your software and all its benefits while also providing you with technical support from a friendly, knowledgeable expert rather than having you talk to a machine or leave a message that may not get returned.
4. “I’m happy with my current accounting software.”
You’re comfortable with programs like QuickBooks and Xero. You’ve been using them for years. The last thing you want is AR automation fixing something that’s never been broken.
Think again. Effective AR automation picks up where your existing software stops and offers features you can’t get anywhere else such as buyer-managed payment wallets, easy-to-use portals with invoice histories, and real-time customer collaboration tools. You won’t be replacing these programs. Rather, you’ll be supercharging them with AR automation, which will sync with programs like QuickBooks and Xero in a matter of minutes. That way, you’ll streamline your AR process in no time.
5. “My company is too small for AR automation.”
Companies with a handful of employees may not think they need AR automation or that it’s suited only for large companies who cater to even larger customers.
AR automation is perfect for companies like yours. By handling invoice preparation and reconciliation, as well as data entry, AR automation eliminates human error for small teams who may not have the adequate manpower to catch mistakes. It also allocates time better by freeing your employees from performing the same mundane accounting tasks and enabling them to tackle more creative, exciting projects geared to the growth of your business.
Most importantly, AR automation ensures customers pay their bills on time and you can better manage cash flow, so you know when you can spend more on staff, equipment, or marketing, and when it’s time to be more conservative. AR automation helps you avoid becoming one of the 82% of small businesses that fail because of inadequate cash flow management.
Bill360 was custom-built for B2B companies like yours. Our platform requires less than an hour of training and syncs with QuickBooks and Xero in a matter of minutes. Features like AutoPay and buyer-managed wallets ensure you get paid faster than ever and our single embedded payment platform reduces processing fees and enables you to invest more in the growth of your business.
Experience the Bill360 difference free for 90 days and then pay just $10 a month thereafter without any additional fees or contracts.
