Why tech companies should be automating their accounts receivable.
It seems to be a contradiction in terms, but many Tech companies do not use AR technology in their own operations. There are probably many reasons why Tech companies do not use AR technology, such as priorities, interest, don’t understand importance, etc. Rather than focus on the why nots, however, let’s state the obvious whys Tech companies should be using AR technology. Here are some obvious whys to consider.
In real estate the most important thing to remember is “location, location, location.” For tech companies, particularly start-ups and fast growing businesses, the key thing to remember is cash flow. When you are measuring the length of time your business can survive financially in terms of “burn rate”, then obviously cash flow should be a major factor to consider in your business plan.
The amount of cash flow and timing of the cash flow your business generates is directly affected by the accounts receivable, credit and collection system you use. Automated accounts receivable systems help to generate more cash flow and speed up the timing of cash flow by:
The capabilities available in AR technology can help you stay ahead of the curve on cash flow; a major reason why you should use AR technology.
With AR technology you can provide the self-service payment and subscription management options your customers want. Make it easy to do business with your company. Online payment options linked to a secure portal can allow your customers to manage payments with credit cards, ACH, EFT and other fintech providers. Customers can also manage subscriptions to your company’s services online, freeing up personnel to make more frequent contact with customers.
AR technology helps to automates many manual credit and collection tasks making more time available to contact past due accounts, respond to credit limit requests and answer customer questions. These are far more beneficial activities than manual clerical tasks.
The ability to increase customer contact and provide customer friendly self-service options is a major reason why Tech companies should use AR technology.
AR technology is widely available through cloud-based subscription software applications, which can be used by your on-site staff and remote workers. Cloud based AR solutions are easy to use and access. They can be fully integrated with your company’s ERP and financial systems and third party resources. These are all obvious reasons why Tech companies should use AR technology.
Accounts receivable, credit and collection software used widely by Tech companies is available from Lockstep Collect, a leader in cloud-based and premise based software solutions made specifically for businesses selling on credit.
If you would like to learn more about how you can benefit from AR technology in your Tech business, please contact Lockstep Collect at www.lockstep.io.