Developing a solid and efficient accounts receivable process is essential for any business trying to maximize their profit and productivity. The best way to do this is with automation. Automating receivables provides a standardized payment process for your clients—meaning it’s the same thing each time. This makes it easier because they know what to expect. A standardized, automated AR system leaves less room for human error, which means a more practical system that always maintains consistent compliance with regulations.
Removing Human Error
A typical AR process includes establishing terms and conditions for credit sales, sending invoices and reminders, tracking payments and identifying unpaid debts. That’s a lot of manual work and a ton of room for human error, most of which can be eliminated by automating your business’s receivables. For example, a person might make a mistake when typing in an amount due on an invoice. This wouldn’t happen with an automated AR system because there wouldn’t be any manual typing involved.
Improving Operational Efficiency
Less human error means less time and resources spent fixing them, which means a more efficient and productive AR process. Automating receivables relieves AR professionals of time-consuming tasks, allowing them to focus on more critical priorities. It also makes it much easier to uphold local and federal standards for automation—such as the Fair Debt Collection Practices Act and Regulation E—and ensures that your business does so in every interaction with every client.
Enhanced Customer Experience
Automated AR systems improve customer experiences because they get the job done fast and right consistently. It’s all linked to the reduction in human error; this makes the process smoother, guarantees that every necessary standard is upheld and allows AR professionals to be as productive as possible. Manual AR systems can’t promise this. With COVID forcing many of us to work remotely, it’s more important than ever to make sure your business’s AR process is as painless as possible. Jared King said it best: “That means striving to make paying invoices as convenient and effortless as making purchases on Amazon.”
The Path to Automation
Something to consider when transitioning from manual to automated AR is that it should be just that—a transition. This is especially true when it comes to older businesses simply because there’s more data. Additionally, organizations that have been operating longer already have long-established systems, which makes an extended transition inevitable. It’s best to just lean in while planning as much as you can. Communicate not just with your employees but with your clients about how this transition will play out. Be transparent, make sure everyone is on the same page and keep lines of communication open on all ends.