It’s a challenge to stay ahead of the curve on late payments using manual accounts receivable (AR) processes. Manual AR systems tie your team up with low-value tasks, reducing the time available for collections. These systems make it difficult to accept more payment options, adding an additional layer of complexity for customers to navigate in order to pay promptly. Automating your AR processes can help the team stay ahead of the curve on late payments and increase cash flow.
Here are three ways to combat late payments with AR automation.
Improved Customer Experience through Automated Invoices and Reminders
Leveraging AR automation with automated invoicing increases efficiency, reduces errors, improves cash flow and enhances customer experience. Electronic invoices eliminate the excuse that an invoice was never received or received too late to make the AP check run. Hyperlinks to electronic payment options on automated invoices make it easier for customers to make payments when you call to collect or send reminder emails. The automated organization of conversations by vendor and customer brings order and clarity into your collaboration.
With automated email reminders, you can program emails based on invoice date and customer payment habits. You don’t have to remember when to send reminders or write original emails. Send payment reminders ahead of the payment due date, and past due reminders on a schedule that fits the unique customer payment practices.
Automated reminders make frequent follow-up possible. Frequent reminders tell customers that you are on top of collections and increase the likelihood that you will be paid sooner.
Increased Payment Options, Increases Payment Completion
Make it easy for customers to pay you on time. If your company only offers payment by paper check, you will make it difficult for customers to pay you, and adversely affect customer experience.
Offer electronic payment options including electronic transfers, ACH, credit cards and FinTech payment processors like PayPal, as well as paper checks. Electronic payments are processed automatically and received without mail delays. They encourage customers to pay promptly. With AR automation, you can offer multiple payment options making it easier for customers to pay you.
Online Customer Portals Improves Customer Connectivity
An online self-serve customer portal makes it easy for customers to pay and manage their accounts, increasing the likelihood that outstanding invoices will be closed.
Providing an online customer portal combats late payments in several ways.
- Facilitates Payments – A portal makes electronic payments easier. Customers can work remotely and make payments from anywhere and at any time that suits their schedule.
- Access Documents – Customers can easily access copies of invoices, statements and other documents needed to process payments on time.
- Report Disputes – Disputes can be reported as they occur rather than after a deduction has been taken. With an online portal, stakeholders can be kept informed to facilitate speedy resolution and payment.
Lockstep Collect is an experienced software partner that can increase efficiency and accelerate your cash flow. With a connected, cloud-based solution, your team coordinate workflows with customers and vendors, can go digital and enjoy the benefits of enhanced, accounting automation from anywhere.
If you would like to learn more about how you can benefit from connected accounting solutions, please contact Lockstep at www.lockstep.io