If you want to simplify accounts receivable in industrial distribution, you should automate the process as much as your inventory, order fulfillment and distribution processes. You can automate accounts receivable to increase efficiency, accelerate cash flow and reduce costs. Accounts receivable software applications available through cloud-based software subscriptions can be seamlessly integrated with your ERP system to simplify the transaction cycle even further.
Automation can allow you to focus your resources and efforts on exception items rather than clerical activities. The less you have to physically “touch” a transaction the simpler and more efficient your accounts receivable, invoicing and collection will be. Following is a brief guide to simplifying your accounts receivable.
Use invoice templates to eliminate the need to recreate invoices every time you bill a customer. Invoice templates save processing time and reduce errors which can cause payment delays. Templates also make it easier to invoice earlier and more often, rather than in batches or at the end of the month.
Send electronic invoices and eliminate the need to process and mail paper invoices. You will reduce needless clerical tasks and costly paper, envelopes and postage.
Automated invoicing simplifies your accounts receivable reducing the need to physically “touch” the processes. It increases efficiency, reduces costs and accelerates cash flow.
Use automated email and text messages to remind customers that an invoice is due or past due. Calling customers is ineffective, time consuming and costly. You can automatically send reminders with copies of invoices and account statements attached.
Automated reminders reduce the need to physically “touch” the transactions, freeing up resources for more important tasks and accelerating cash flow.
ONLINE PAYMENT OPTIONS
Provide online payment options to make it easy for your customers to pay promptly. Adding a hyperlink to online payment options to your electronic invoice makes it unnecessary for customers to contact you or process and mail a check to pay an invoice.
Online payment options increase efficiency, reduce costs and accelerate cash flow. You can direct the resources to physically “touch” transactions to where they are needed the most.
Simplifying accounts receivable also means facilitating communications and quickly resolving customer disputes. Automated accounts receivable with Online Notes and Work Flow features make this possible.
Online notes are a single, easy to access source of the history of an account. You have everything you need at your fingertips when you contact a customer, sales rep or customer personnel to resolve customer disputes, credit limits and operational issues.
Missing documents are frequently the reason for payment delays. Work flow facilitates the receipt and distribution of electronic copies to customers, sales reps, internal personnel and financial institutions.
Automated accounts receivable, invoicing and collection integrated with your ERP platform can help to simplify accounts receivable and accelerate cash flow. The key to successful accounts receivable automation is to work with a software partner experienced in seamless integration with ERP platforms.
Lockstep Collect is a leader in cloud-based and premise-based software solutions made especially for businesses selling on credit. Lockstep Collect can integrate with many ERP platforms including Sage, Microsoft Dynamics, Oracle, NetSuite and SAP.
If you would like to learn more about how you can benefit from automating your accounts receivable, invoicing and collections, please contact us here.