Every business needs a healthy cash flow. If there’s an ever-present issue with the timeliness of receivable payments, the business may run the risk of not being able to sustain its operations. Yet, managing accounts receivables (AR) remains a complex and time-consuming task for many businesses.
Managing payments manually wastes time and money, causes errors, and results in lost documents and compliance breaches. Bringing in technology is, therefore, crucial, and we’ll see how you can boost growth with an accounts receivable automation solution for your enterprise.
What Is AR Automation?
Accounts Receivable (AR) automation uses technology to streamline and optimize the various tasks involved in managing payments made to the business. It replaces the manual and error-prone tasks carried out by staff.
An accounts receivable automation solution like Quadient AR can handle a wide array of receivable tasks, starting with generating an invoice when a sale is made. The system will then automatically track the payment on behalf of your team. When it’s due, it will automatically send a reminder. Some AR solutions also have a portal where clients can make payments easily through their preferred payment method.
The chosen AR solution should integrate with the existing accounting or enterprise resource planning (ERP) software.
How AR Automation Boosts Business Growth
AR automation is a huge catalyst for growth as it helps streamline business cash flow in different ways.
Faster Payments, Healthier Cash Flow
In manual systems, it’s easy to delay sending invoices, forget follow-ups, and for customers to ignore or forget about invoices due. This can then have a ripple effect on your business, leaving you cash-strapped and unable to fulfil orders or expand.
When the AR process is automated, invoices are accurate and sent out immediately to the correct person. Customers receive reminders that nudge them to pay on time. Most AR automation solutions also provide portals that make it easy for customers to complete payments. AR solutions will also set up recurring billing for repeat customers.
Time Savings for Your Team
If you manage your account receivables manually, your staff spends countless hours creating invoices, tracking the different accounts, and doing reconciliations. This means a lot of overhead costs for you, but it’s not just that. All these tasks divert the attention of your employees from other tasks that would otherwise lead to the growth of the business.
When you bring in an accounts receivable automation solution like Quadient AR, it does most of the work. The solution will generate invoices, send reminders, and follow ups are now handled by the system. It means that your employees will be free to focus on tasks like identifying financial trends and improving customer relationships.
Improved Customer Relationships
Like all other aspects of the business and human life, your staff will make errors when sending invoices, and they may also forget to follow up on payments. Such issues will lead to confusion and even disputes, eventually causing dissatisfaction on both sides.
An accounts receivable automation solution for enterprises goes a long way in avoiding this. All invoices are generated automatically, so they are accurate. The system is also responsible for sending polite payment reminders to avoid annoying calls. This way, you avoid friction with your customers over payments, something that will boost their loyalty.
Enhanced Data Insights
Automation will make it easy to carry out the different tasks involved in payment management, but that’s not all it does – it actually brings in several features and functionalities that you didn’t have in your business. The standout one is generating reports about all accounts receivables.
You don’t have to manually look up whether an invoice has been paid. You also get crucial insights into how your business is performing and how your customers behave payment-wise. It means that you can easily identify trends in payment patterns and spot potential issues before they become problems.
Quadient is a global automation platform powering secure and sustainable business connections through digital and physical channels. Quadient supports businesses of all sizes in their digital transformation and growth journey, unlocking operational efficiency and creating meaningful customer experiences.
