Automated AR is more important than ever as the economy reopens. AR departments are challenged to increase collections and cash flow in an environment where many customers are still recovering from the devastating economic impact of the pandemic. In addition, the working capital and cash requirements needed to ramp up for a business recovery are greater than when business is stable. This makes the need to automate AR processes even more crucial to achieving cash flow goals.
Despite this environment and the compelling reasons to automate AR, many companies are still struggling with manual processes. So what’s holding back AR departments from automating?
Lack of financial resources may be a problem as many companies are still recovering from the economic impacts of the pandemic. Cloud-based, AR automation solutions eliminate the need to invest in software and hardware, and reduce the costs of implementation.
There are always other investments vying for priority when resources are constrained. Make sure that your project clearly demonstrates how AR automation will increase cash.
AR departments with manual processes are often understaffed and overworked because of the tasks that need to be performed by hand. As a consequence they may feel they lack the department resources to automate AR processes. Cloud-based, AR automation solutions are easier to install and requires less time and resources to implement.
A lack of IT resources may be perceived as a barrier to automating AR. With cloud-based, AR automation, installation and implementation is easier and requires less IT resources than an on-site installation.
The absence of management support for a project is usually because the benefits and return on investment have not been clearly explained. Make sure that the benefits of automated AR and ROI are presented clearly. It is also helpful to enlist a member of the executive team to support your AR automation project.
Resistance to Change
If change is a problem in your organization, make sure that your AR automation project is clearly explained and promoted to all stakeholders and influencers. Recruiting a champion can also help to overcome fear of change.
Like fear of change, ingrained perceptions that the current system works well enough, are due to lack of knowledge and misperceptions. Education and the support of management, influencers and a project champion can help to overcome ingrained perceptions.
AR automation is critical to increasing collections and cash flow. Overcome the issues holding back your AR automation project with education, promotion, and the support of management, influencers and a project champion.
Accounts receivable and accounts payable cloud-based solutions with customer/vendor portals and digital processes keep vendors and customers connected whether they work remotely or not.
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Lockstep is an experienced software partner that can help you increase efficiency and accelerate cash flow.
If you would like to learn more about how you can benefit from connected accounting solutions, please contact Lockstep or visit us at at www.lockstep.io