Most people agree that timely payment is crucial for any business. Many companies still face invoicing challenges. Your cash flow is directly affected by slow and tedious distribution or failure to fulfill customer invoicing requirements. Accounts Receivable Automation is the solution.
In simple terms, AR Automation is a method of automating repetitive, time-consuming tasks for your receivables team.It helps you to save time, avoid errors that are often found on invoices – many of which are human errors.
To ensure that your AR team sends out accurate invoices, they must review the documents multiple times. Customers may have additional requirements, such as specific distribution methods, beyond just checking pricing and articles. Making mistakes during this process could result in delayed payments, credited invoices, and other burdensome and disruptive issues.
AR Automation: The benefits
AR Automation can help you automate your AR process, comply with local invoicing legislation and send all customer invoices electronically, regardless of whether your customers have digital capabilities. Each customer has different needs. You can set up rules to automatically fulfill their requirements and maintain a fully digital workflow.
Streamline your workflow to improve security
Your AR team can focus on forecasting cash flow and handling overdue payments by reducing the amount of time it takes to process each invoice. This means that staff can focus on the important tasks and not the tedious ones.
You can easily comply with legal requirements
E-invoicing is becoming more popular in many countries. It quickly becomes complicated because different countries have different requirements. This is especially true if you have customers from multiple markets. Automation is a way to automate repetitive, time-consuming tasks that are found in receivables. It reduces the amount of time it takes to process invoices, as well as the number of clerical errors found on invoices.
AR Automation can help you comply with local laws in these situations. AR Automation gives you one point of contact for all your global invoicing and allows you to get paid across multiple markets.
Customer service and accuracy can be improved
Trust with customers can also be built by increasing the accuracy of invoices. Companies that fail to properly send invoices often look unprofessional and add extra work. AR Automation doesn’t care what format you prefer or how technologically advanced they are. They will be treated the same at your end, even though they prefer paper documents.
This is possible thanks to automated sorting and routing, as well as print and mail services. Instead of spending time sorting and routing documents, your finance team can concentrate on more important tasks. This saves time and allows recipients to easily switch between electronic or printed invoices as their organizations become more digitally mature.
Consider these things when selecting a service provider
Many providers offer AR Automation, but not all of them are the same. What should you look out for when choosing an AR Automation provider for your company?
Choose an open platform
The main difference between solutions is their openness to other services. You should not assume that your customers use the same solutions as you.
Make sure your company has a global presence
Do you do business internationally or plan to expand into new markets? Choose a platform that is present in as many countries as possible.
It should be compatible with local requirements
Many countries require that invoices be sent electronically via local platforms or hubs. You must meet these requirements.
Distribution in all formats
Many companies are moving to digital invoicing. However, AR Automation doesn’t make it any less important for you. Make sure that your service can send invoices in any format possible, even if they are printed on paper.
AR Automation should integrate seamlessly with your ERP without the need to add new order systems.