Accounts receivable (AR) automation is the use of software to automate the manual tasks involved in the accounts receivable process, such as invoicing, payment processing, collections, and reconciliation.
AR automation can provide a number of significant benefits for businesses of all sizes, including:
1. Improved Cash Flow
AR automation can help businesses to improve their cash flow by reducing the time it takes to get paid. This is because AR automation software can automatically send invoices to customers and follow up on late payments. For example, AR automation software can send automated payment reminders to customers before their payments are due. This can help reduce the number of late payments and improve the overall timeliness of payments.
2. Reduced Costs
AR automation can help businesses to reduce costs by eliminating the need for manual data entry and processing. This can free up staff to focus on other important tasks. For example, AR automation software can automatically generate invoices from customer orders and post payments to the general ledger. This can eliminate the need for manual data entry and save businesses a significant amount of time and money.
3. Increased Efficiency
AR automation can help businesses to increase the efficiency of their accounts receivable process by automating repetitive tasks. This can help businesses to get paid faster and reduce the risk of errors. For example, AR automation software can automatically reconcile payments, generate reports, validate customer data, and check for duplicate invoices. This can help businesses to identify any discrepancies in their accounts receivable data and take corrective action quickly.
4. Improved Insights
AR automation can help businesses improve their insights into the company and its customers. At a glance, dashboards and analytics will reveal far more about customers and the financial health of the company. For example, this information can be used to evaluate credit decisions, identify payment trends, and make better collection decisions.
5. Improved Customer Satisfaction
AR automation can help businesses to improve customer satisfaction by providing customers with more convenient payment options and by reducing the number of late payment notices. For example, AR automation software can allow customers to pay invoices online or through a mobile screen. This can make it easier for customers to pay their bills and improve their overall experience with the business.
By automating the manual tasks involved in the accounts receivable process, businesses can improve their cash flow, reduce costs, increase efficiency, runthe business more profitably, and improve customer satisfaction. If you are considering implementing AR automation, it is important to choose a solution that’s right for your business. Bill360 was purpose-built for B2B companies and provides unique features and functionality not found in any other software. Implementation from your completed application takes under an hour. To learn more about Bill360, click here.