Automating accounts receivable collection is a great way to manage your cash flow better, reduce labour costs, and get more precise information on the financial situation of your business. Here are five strong reasons to take the step to automating a major function in keeping the finances of your business healthy.
1. Accounts Receivable is an Asset, Not a Liability
Accounts receivable are money that is owed to your business, and it will be converted to cash. However, chasing for the accounts receivable payments can be stressful, so they are too often considered a liability.
The money owed is still theoretically in your account and can be rightfully leveraged as an asset. So it is time to reduce the stress and focus on solutions to make the best of your assets when needed.
2. Reduce Overhead Costs and Increase Your Bottom Line
Automating accounts receivable collection reduces the time it takes to process invoices, which also means lower overhead costs. At the same time, accounts receivable collection automation will help you manage your cash flow better and keep your DSO number as low as possible.
Automating the collection also improves cash flow and reduces bad debt, while providing more accurate information about the financial health of your business.
3. Focus on What’s Important – Growing Your Business
By using accounts receivable collection automation software such as On-Time Mobile Communication Platform, you are able to reduce labour costs and increase employee productivity in other areas.
It is not only manually calling customers that is time-consuming, it is also the follow-ups, entering data, and so on. On-Time Mobile Communication Platform enables you to automate accounts receivable collection and to concentrate on your core operations. Our platform supports for example SMS reminders, which have been found supremely efficient in collections.
4. Collecting Late Payments Is Simply Easier with Automation
Major cause of late payments is simply human error. Automation helps eliminate that risk. As the collections are overall more accurate, you can also be confident on the data that you have on the amount owed to your business.
The process is also easier for the customer, as you can use automated collection systems in conjunction with credit card transactions, which means there are fewer steps involved in paying off their balance.
5. It Is Actually Better Customer Service
Would you believe that accounts receivable automation will improve your customer service, satisfaction rates, and brand experience? AR collection automation can reduce the number of collection calls made to customers, which benefits both parties.
On top of that, there is less awkwardness and embarrassment concerning the situation, as the customer knows that they are speaking with a machine.
Do you want to automate your Accounts Receivable Collection process? Book a free 15-minute remote presentation and we’ll tell you how to!Book a free 15-minute demo