Running your own fuel distribution company is challenging enough considering how you spend each day dealing with fluctuating prices in a volatile market. The last thing you need is additional difficulties born out of an inefficient accounts receivable (AR) process.
Manually handling invoices, payments, and reconciliations consumes time and resources while increasing the chances of errors and payment delays, putting a crimp in cash flow and creating a high-stress environment.
The solution is automation.
Here are five ways automating your AR process can benefit your fuel distribution company:
1. Predictable cash flow
Frequent fluctuations in gas prices make it hard for you to accurately manage cash flow and make sound, well-informed financial decisions when it comes to investments and other expenditures.
Automation expedites the AR process and automatically sends payment alerts to customers, enabling you to get paid faster while ensuring you have the funds available if fuel prices suddenly skyrocket. Automating your accounts receivable process enables AutoPay, ensuring you receive payments on time, and simplifies the process by offering various payment options through the Automated Clearing House (ACH) network. That way, your company is paid faster than ever. And real-time insight into financial data helps you better identify trends even during the most volatile of times.
2. Better time management
A successful fuel distribution company provides more than just delivery. Whether it’s cleaning tanks, installing pumps, or adding services such as car washes and convenience store items, you’re always looking to provide customers with whatever they need to succeed.
By handling tasks typically done manually, automating your AR process frees up your team by preparing, collecting, and reconciling invoices that are customized with your company’s colors and logo. That way, your employees can focus on more strategic projects geared toward servicing customers. Because you’re getting paid faster and more consistently, your employees won’t have to waste any more of their week chasing down delinquent payments.
3. Enhanced customer communication
The fuel industry is highly competitive and requires successful companies to provide something other than a quality product when it comes to retaining customers and recruiting new ones.
One way to stand out is by offering a unique experience customers can’t find anywhere else. Automating your AR process makes this possible through customer portals that make it easier than ever for them to make payments and receive real-time notifications so they and you can work to quickly resolve any discrepancies. By removing manual labor associated with your billing process, AR automation eliminates mistakes and ensures your customers have all the information they need to make prompt, secure payments.
4. PCI Compliance assistance
Remaining compliant can be a challenge for a fuel distribution company, especially smaller ones whose employees may not have the time to stay on top
Automated validation ensures your invoices comply with tax regulations and other requirements before they’re sent to customers. Automating data entry eliminates human error that could lead to inaccuracies and fines and reconciles important data – invoices, payments, documents – that is easy to track and access in the event of an audit.
5. Reduced operating costs
You know how expensive it is to run your fuel distribution company with transportation, storage, and other expenses routinely taking a bite from your bottom line.
Eliminating manual tasks within the accounts receivable process enables your employees to focus more on increasing sales while also verifying fuel deliveries and ensuring accuracy, leading to expedited payment cycles and lower Days Sales Outstanding (DSO). Your entire company will operate more efficiently, as well, which will drive down costs and increase productivity.
Automating your AR process works well if you choose the right partner. Bill360 is the first automated payment solution created for B2B businesses such as your fuel distribution company. Our innovative platform enables you to get paid faster, ensuring you have the working capital required to better serve your companies and accelerate growth.
Bill360 requires less than an hour of training and syncs to existing accounting software such as QuickBooks and Xero in minutes. We’re here to supercharge your accounting system – not eliminate it.
Learn more about Bill360 and why we’re the top choice for B2B companies looking to simplify their AR process.
