Automating accounts receivable tasks can save time and help to collect customer payments quickly and efficiently.
Outstanding payments from debtors are one of the key reasons that small businesses run into trouble. Not only does chasing late payments waste valuable time, late payments can also have a devastating effect on your business’ cash flow.
Keeping on top of important accounts receivable tasks can be very time-consuming, so using technology to automate repetitive tasks is a way of working smarter.
Whilst you will want to keep certain communications with your customers personal, there are key points during the accounts receivable process that work more efficiently when automated.
Which tasks can be automated?
At minimum most businesses can benefit from automating the following tasks:
- Creating and sending electronic invoices.
- Sending electronic payment reminders.
- Generating lists of outstanding payments and other reports.
Some larger businesses may also benefit from investing in an online customer portal to allow customers to conveniently log-in and view details of their customer account online, including payment history and outstanding invoices. This can dramatically reduce the amount of time you spend on the phone answering customer queries.
Why automate?
Benefits of automating these kinds of tasks include:
- Time-saving– The key benefit of automation is the time that it will save your business. Less time spent on repetitive administrative tasks means more time to spend developing, improving and growing the business.
- Accurate– Another advantage of automation is that it dramatically reduces the risk of human error. Payment reminders will be sent on time, every time, and reports will be generated with complete accuracy.
- Environmentally-friendly– Running your accounts receivable department electronically means no more paper bills or letter reminders, which is a step in the right direction when it comes to your corporate social responsibility.
For further help and advice with arrears prevention, get in touch with our team of experts here at Churchill Recovery by giving us a call on 0333 320 0748.