The pandemic turned the world upside down. It changed the way we live and do business. The paradigm shift to remote work developed in response to the pandemic. Businesses with accounts receivable automation and standardized AR processes adapted to remote work without too much trouble, but organizations with manual AR processes struggled to adjust to the new environment.
AR automation requires standardized AR processes. Manual AR processes, on the other hand, are not easily standardized and integrated, resulting in inefficiency, lower collections, higher DSO, unsatisfactory customer experience, and fraud and compliance risks.
Inefficiencies of Manual AR Processes
Manual accounts receivable processes limit your ability to adequately perform critical steps in the AR cycle from customer onboarding and credit review to invoicing, dispute resolution, collections, profile management, reporting and cash forecasting. Time that should be spent contacting priority collection accounts is diverted to performing manual tasks. AR automation and the standardized processes that go hand-in-hand with them, improve efficiency and increase cash flow.
Unsatisfactory Customer Experience
Customer experience will suffer without AR automation, standardized AR processes, and customer self-service.
- Digitally transformed customers will not want paper invoices.
- Customers will not want to pay by check.
- Without a self-service portal, customers will have difficulty paying electronically, obtaining copies of
invoices and statements, reporting disputes, maintaining master data, and communicating with your team.
- Transaction errors will occur more often, and require more time to resolve.
Collections automation and standardized accounts receivable processes will eliminate these problems and enhance customer experience.
Fraud and Compliance Risks
Without AR automation and standardized AR processes, there is no assurance that policies and procedures are being followed, increasing compliance and fraud risk. The prevalence of remote work further exacerbates this situation, and increases risk exposure.
AR automation and standardized AR processes provide the assurance to your executive team and auditors that company policies and procedures are being adhered to.
Standardize AR Processes
AR automation and standardized accounts receivable processes are crucial to operating in the digital world and remote work environment. More and more companies are moving to 100% digital AR processes to increase efficiency, reduce DSO, enhance customer experience, and reduce fraud and compliance risks. Standardized AR processes makes AR automation and the benefits it can bring to your organization possible.
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.
With a connected accounting solution for your accounts receivable and accounts payable teams to coordinate work with customers and vendors, you can go digital and enjoy the benefits of office automation.
Lockstep Collect, a leader in cloud-based connected accounting solutions, can help you boost productivity and optimize cash flow with:
- Automated Communications
- Customer Self-service
- Collections Activity Management
- Reporting & Forecasting
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 www.lockstep.io