Automating Accounts Receivable needn't be complex

Automating Accounts Receivable needn't be complex

In this, the third and final blog in our series exploring accounts receivable (AR), we take a look at how to introduce digitisation successfully for simple AR process automation.

Effective Accounts Receivable management is essential for all businesses. AR processes impact how long it takes to get paid when products and services have been delivered. Done well, and payments come in smoothly and in a timely way, the status of each account is clear and visible to everyone who needs access, and customers are satisfied.

Unfortunately, things don’t always run smoothly and when that’s the case, time gets wasted on both sides, frustration and confusion creeps in and, most worryingly, customers can become dissatisfied.

Manual ways of working and reliance on systems that don’t connect to each other can contribute to AR processes that fall short for the business and its customers. In our last blog we explored the issues that can arise and how they can result in poor business cash flow.

Automating manual tasks and streamlining AR activities through a centralised, digital platform can reduce the headache of billing and payments. Take a look back at our earlier blog to recap the benefits of digitising AR processes. 

Managing change

While legacy processes can hold invoicing back, businesses may be apprehensive about transitioning to a digital solution. A range of concerns need to be addressed, such as:

1. Familiarity with current processes: any change can be unsettling and, while manual ways of working may be time-consuming and provide limited insights from data, they are familiar and employees are comfortable with what they know. Employees should be fully involved in any change programme so that they understand the benefits and are able to raise any questions they have throughout
2. Disparate systems setup: it can be difficult to picture how a new solution would work when there is an existing legacy system architecture in place and software such as enterprise resource planning (ERP) and customer relationship management (CRM) that all play their part. A single AR management platform works from a single data set and can integrate with ERP, CRM, accounting and billing systems to minimise manual data entry, improve reporting and facilitate payment and collections
3. IT and budget constraints: there may be an assumption that an AR automation solution will be technically complex, requiring IT expertise, and costly. Fortunately, many of today’s user-friendly cloud-based solutions are cost-effective and ‘plug-and-play', requiring little to no IT involvement.

Automating AR needn’t be complex. With the right solution, the constraints of manual processes can be overcome to increase efficiency, improve customer satisfaction and reduce Days Sales Outstanding (DSO). To find out more about digitising AR processes, take a look at YayPay by Quadient, an automated AR management platform.