Risk Of Neglecting Automated Accounts Receivables
AUTOMATES ACCOUNTS RECEIVABLE PROCESSING
Many corporate finance teams fail to appreciate the critical importance of automate accounts receivable (AR) processing as part of the order-to-cash (OTC) cycle. Without streamlined AR system, business may face multitude of financial risk and hamper their more fruitful opportunities.
An automated AR system can accept payments from customers electronically and free the finance team from the labor-intensive process of identifying and collecting payments. Making use of such technologies reduces human error and helps to ensure that payments are tracked and reconciled correctly and efficiently. Moreover, when integrated with other storage systems such as enterprise resource programs (ERP), AR automation can generate detailed billing reports and other analytical metrics quickly and accurately.
Not only does automated AR optimise businesses daily operations, minimising errors while allowing teams to update real-time reports, but it also frees up resources that can be utilised for other projects that can generate further economic returns. Without an automated AR system, teams are not able to leverage their resources to capitalise on investment and marketing opportunities, further penetrating new markets and potentially increasing business revenues.
With manual system, invoices, past due amounts, and any discrepancies cannot be consumed efficiently and any paperwork that is sent to collections must go through review process to ensure accuracy. Such delays will only complicate the entire process and weaken existing customer relationships. Retaining customers is an essential pillar to business? longevity, and an automated AR system that collects payments quickly yet accurately establishes the goodwill these customers seek.
Most automated AR systems are also capable of accommodating multiple payment types, enabling businesses to expand their services and develop new products accordingly. For example, services like credit card payments, automated clearing house (ACH) payments, and other forms of digital payments can be easily and securely implemented into an automated AR system.
The risk of failing to understand and adopt automated AR systems is incalculable for businesses and defy logic for finance executives. Such systems are often easy to implement, secure financially, and save the organisation vast amounts of time and money over the long-term. When selecting an order-to-cash software, investing in an automated AR system should be necessity.
