Automating your company's accounts receivable (AR) process offers multiple benefits. But it’s crucial to add a platform focused solely on AR to your tech stack rather than one that also automates accounts payable (AP).
A combination platform may sound appealing. But getting the most out of AR automation – reliable support, faster payments, stronger cash flow, secure payment options, real-time metrics – means integrating software dedicated exclusively to AR.
This blog explains why
1) Live Support
You don’t want to waste time or energy on ineffective chatbots: UJET recently reported that 63% of people surveyed said interacting with a chatbot did not resolve their issue. And when you talk to a live person, you need to make sure they’re an expert.
The right AR platform provides access to a live, in-house support team. If you’re using software that handles AP and AR, you might not get an expert for your specific issue. Or the team may be spread too thin to answer your call, forcing you to interact with a perplexing bot or leave a message with a third-party answering service. Opting for a company focused solely on AR automation enables you to speak with AR experts committed to efficiently resolving your problems.
2) Embedded payment platform
Easing back on check usage and acceptance is a good idea, especially since financial institutions reported a 12% increase in losses from check fraud last year. They want to pay by credit card. However, some software vendors pass the payment processing to third parties.
Look for a company dedicated to AR with an embedded platform that handles automation and reconciles invoices while seamlessly and securely processing card payments. These platforms enable you to set credit card thresholds for each customer or invoice while reducing costs, expediting payments, and providing customers with an option they’re comfortable with. Lower processing costs means you can increase your acceptance of credit cards and eliminate the risk of check fraud.
3) Customizable Reminders
Late-paying customers not only increase your DSO and suppress cash flow, but they create a stressful work environment and force you and your staff to make uncomfortable phone calls that strain the buyer-seller relationship.
Platforms exclusive to AR automation feature the most innovative tools and functionality that enable companies to address AR-specific pain points. This includes the ability to send customized payment reminders and alerts with personalized messaging to whomever and whenever you choose. You and your staff won’t waste time rankling customers with obtrusive calls but will keep them informed about upcoming or overdue payments. Some AR platforms even alert you when a typically punctual customer is late, enabling you to proactively reach out and help.
Combination or all-in-one platforms don’t zero in on these issues because they target a wider audience rather than companies looking to streamline their AR process.
4) Enhanced Communication
People want to be treated well – Salesforce reported 88% of customers said the experience a company provides is as important as the quality of a good or service. But companies that service AP and AR automation may not have the skills required to help you deliver white-glove customer service. They’re so busy learning about AP and AR that they fail to become an expert in either.
An AR automation company knows your customers don’t want to deal with chatbots. That’s why it provides real-time collaboration tools through a portal where customers can chat with a live member of your team and view their entire payment and invoice history. You can also send customizable emails with pictures, invoices, and other documents attached, enabling you to meet the specific needs of each customer.
AR automation platforms empower customers to manage digital wallets and pay balances with the click of a button rather than having to re-enter their payment information each time. You and your customers can also set up AutoPay. That way, you can simply draft recurring payments from their credit card or bank account to ensure you get paid on time and your customers don’t accrue late fees.
5) Live DSO Monitoring
There is no better way to gauge the efficacy of your AR process than DSO, which lets you know how long it takes you to get paid. Companies that automate AR and AP may not have the specific data required to accurately measure DSO, however, which means you won’t have any idea how effective your process truly is.
The best AR automation platforms provide real-time, up-to-the-minute DSO monitoring on a clean, clear dashboard. Day or night, weekday, weekend, or holiday, you can access DSO immediately. These platforms also provide other key metrics like a graph that breaks down your customers’ payment methods and lets you know if a heavy reliance on checks is slowing your AR process and driving your DSO in the wrong direction.
Bill360 is focused 100% on AR and helping B2B companies like yours achieve long-term financial health. Our secure, embedded platform provides innovative automation, invoice reconciliation, and payment processing, resulting in faster payments, reduced costs, and a thriving cash flow.
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