If your company has yet to automate its accounts receivable (AR) process, it could be making a costly mistake. As your company grows and expands, the need for automation to avoid errors and lost revenue becomes even greater.
AR processes are constantly under pressure to improve process time, reduce complexity and make efficient use of cash flow. Whether through grandfathering in of antiquated ways of doing things or some other long-outdated reasoning, many companies fail to move forward in integrating multiple systems to support a reliable, recognized brand to customers and vendors when it comes to order management.
AR processes involve multiple documents and forms, with systems that often become complex. If not properly integrated and then automated, the accompanying paperwork and steps of each individual process can be overwhelming, opening the door wide for human error.
Automating activities will help standardize and integrate these processes, as well as enable electronic processing which reduces human error, procrastination and loss time.
Businesses with automated AR processes reap a number of benefits, including:
- Improved billing accuracy and reduction of under-billing
- Better management of risk
- Reduced receivable processing costs
- Average of 22 fewer days sales outstanding (DSO)
- 1/3 the past-due accounts of those without automated AR
- Payments clear AR ledger 7 days faster
- 40% fewer staff hours devoted to the AR process
While these are the most common reasons companies have given for automating AR systems, businesses can expect to see additional benefits from standardization and electronic processing. The same holds true for AP processes, which means lack of integration between the two can hinder the ability to streamline either function.
If your company is like most, it is searching for ways to improve its AR functions. Implementation of an automated process with electronic records can be the solution. With improved cash flow and a reduction in errors, an automated AR process can help drive your business forward while freeing up financial personnel to focus on other financial function critical to your company's future.
As we explained in a recent post,
By Socius, an Ohio Dynamics ERP Partner (https://www.socius1.com/solutions/erp/)