Cash flow is what keeps small businesses going. When customer payments are delayed, it affects many aspects of a business and creates AR (accounts receivable) aging. In this post, we’ll discuss several reasons why payments can be late as well as how an AR automation software solution can help you minimize AR aging.
Here are several reasons why accounts receivable age:
Whether accidentally deleted or lost under a pile, it’s not uncommon for invoice emails to get overlooked. For this reason, sending reminders and alerts are essential. However, they can take time if done with manual phone calls - and those calls can damage your relationship with customers.
Bill360 enables you to send set up automated workflows that email proactive reminders to whomever, whenever, and as often as you choose. That way, you can reach out to customers before their payments are past due. They'll appreciate not having to pay late fees or take a credit hit; you'll appreciate getting paid faster.
You forgot to invoice
If you’re a B2B company with a high sales transaction rate, but little automation and support for invoicing and payment processing, it’s easy to forget to invoice the clients.
With e-invoicing, or electronic invoicing, accurate invoices are created as soon a sale is made or service provided. All you have to do is type in the amount and hit send and it lands immediately in your customer's inbox. You can also attach messages and documents and embed "pay now" links, enabling them to pay immediately.
Bill360 is one of few platforms to feature batch invoicing, allowing you to send - and your customers to pay- multiple invoices at once.
A customer might withhold payment if they still have questions about any number of aspects pertaining to your invoice. However, if they're forced to deal with ineffective chatbots or outsourced answering services, they may never get the answers they need.
Bill360 gives your customers 24/7 access to their own portal that enables them to chat with you in real time and get instant answers to questions about their invoice, eliminating payment delays.
Limited payment options
Is your B2B company heavily reliant on checks? Checks can take days and sometimes weeks to arrive and clear - if they arrive at all considering check fraud remains a very real threat in the B2B space.
Give your customers options with Bill360. Through their portal, your customers can set up and manage their own digital wallet and make one-touch payments via ACH and with credit cards. These methods are faster and far more secure than checks, and provide the simple, hassle-free payment experience today's B2B buyers crave.
Invoice errors
Amalto reports 61% of late payments are the result of invoice errors. Whether it's an incorrect amount or due date, an invoice error can delay payment and hurt your company's reputation.
Creating an accurate e-invoice with Bill360 is as simple as clicking two buttons, greatly reducing or eliminating the risk of mistakes. You also don't have to worry about errors caused by a burned out or tired staff.
Eliminate late payments with Bill360
Accounting automation from Bill360 combines e-invoicing, auto reconciliation, and payment processing into a cloud-based platform that gets our clients paid an average of 10 days faster than their current process. Check out our video library to catch our platform in action and hear real success stories from real Bill360 clients.
Not at all. It's perfect for SMB B2B companies who may not have the bandwidth to run an efficient AR process and a business at the same time.
AR aging shows how long unpaid invoices have been outstanding.
Checks take time to arrive and clear. And as check fraud continues to be a problem, some checks never arrive at all.