Technology services of all types are being offered on a subscription basis. Cloud-based services, software applications, software maintenance, education and virus protection among others are all available on a subscription basis.
The factors driving the shift of technology to a subscription based model include:
- Subscriptions are an operating expense vs. capital expenditure benefitting cash flow.
- Obsolescence is not an issue since you don’t own the software.
- Subscriptions provide scalability so you don’t pay for more than you need.
- Computing power is more than you could afford to provide yourself.
- Software packages can be subscribed as a bundle or by module.
- Subscriptions can be paid online with credit cards and renewed automatically.
All of these factors apply to accounts receivable software. You can manage accounts receivable using a technology subscription. Here are some of the key points to consider in deciding if using a technology subscription to manage accounts receivable is right for you.
The cost and cash required to purchase and install accounts receivable software and any hardware needed to run it may be prohibitive for your company. A subscription to a cloud-based accounts receivable package can give you the tools you need without large upfront outlays.
ONLY BUY WHAT YOU NEED
Accounts receivable software packages can be subscribed as a bundle or by module. If there is functionality you don’t need, or is available from other software your company has installed, then only subscribe to what you need.
BENEFITS VS. COST
Consider the benefits compared to the costs of a subscription. The tools available in accounts receivable software such as dashboard reporting, online notes, automated reminders, invoice templates, online payments and work flow will help you to improve accounts receivable management and cash flow. These benefits will far outweigh the relatively small cost of a monthly or annual subscription to the software.
Be careful not to fall into the trap of measuring the benefits in terms of head count reduction. The benefits come from freeing up you staff to achieve improved accounts receivable management and cash flow, not from laying them off.
Use of a cloud-based subscription to accounts receivable software should be as easy as logging on internal software. Availability can be tailored to your company’s requirements and budget. Appropriate security protections should be taken just as you would with internal company software. Printing of reports and receipt and transmission of emails and documents should be transparent. System up time is often better than client companies can achieve themselves.
Software problem resources and updates should be available from the software provider to keep your operation running smoothly.
With the availability of cost-effective accounts receivable software through subscription services, all companies can have access to the tools they need to improve accounts receivable management and cash flow.
Accounts receivable, credit and collection software is available from Lockstep Collect, the leader in cloud-based software solutions made specifically for businesses selling on credit. With a software for AR automation, you can accept payment via credit card on a recurring basis. This eliminates the hassle of chasing customers around for payment. Instead, your customer simply sets the payment up once and the subscription continues to run every month.
If you would like to learn more about how you can automate your accounts receivable, credit and collection system, please contact Lockstep Collect at www.lockstep.io.