Automating accounts receivable processes will result in a number of benefits, which will justify the cost of the investment many times over. These benefits include:
- Increased cash flow
- Lower costs
- Improved efficiency
- Better customer service
- Time freed up to spend on higher priority tasks
- More interesting jobs for your accounts receivable team
These benefits can be realized by automating your transaction process from customer onboarding through invoicing, collections and cash application.
Here are the accounts receivable processes you should be automating:
First impressions can make or break a customer relationship. If you want to successfully start a new customer relationship, make sure the onboarding process goes smoothly for all the functions that touch the transaction cycle from sales and customer service through manufacturing/service, distribution, invoicing, accounts receivable, collection and cash application.
The keys to a smooth onboarding process are:
- Understanding the terms agreed to with the customer
- Reviewing the customer’s purchase order terms
- Knowing the customer’s routing guide requirements
- Making sure the information entered in the customer master file reflects all of the foregoing and is accurate
Automation of the onboarding process integrates the information from the customer master file with all of the software applications which are part of the transaction cycle including invoicing, accounts receivable, collection and cash application.
Automated invoicing using invoice templates eliminates recreating basic invoice information for the same customer. This saves times, reduces errors and accelerates cash flow.
Automating notices of invoices coming due and past due with email or text messages saves time, eliminates tedious clerical tasks and improves your likelihood of being paid sooner.
Providing a customer portal gives your customers self-service capability to access documents, make an online payment, initiate disputes and make a payment commitment. A customer portal saves you time, increases cash flow and gives your customers the flexibility to self-manage their accounts.
Automating disputes through a customer portal makes it easy for your customer to initiate disputes so you learn about them sooner. It also makes it easier for you to communicate with the stakeholders and facilitate resolution to increase cash flow.
Online payment through a customer portal encourages prompt payment and saves the time that can be spent on higher priority projects.
Automating cash application eliminates tedious clerical work, reduces errors and keeps accounts receivable up to date.
An accounts receivable dashboard with drill down capability reporting real time KPI data, saves time and gives you and your company’s executives a tool to easily understand key accounts receivable and collection metrics.
Automating accounts receivable processes is an investment every company should make to increase cash flow, save time, increase efficiency, reduce costs and improve customer service.
The key to successfully automating your accounts receivable processes is to work with an experienced software partner.
Lockstep Collect is a market leader in cloud-based credit and collection platforms. Lockstep Collect can help you automate your accounts receivable processes.
If you would like to learn more about how you can benefit from automating your accounts receivable processes, please contact Lockstep Collect at www.lockstep.io.