Transforming your finance processes doesn’t need to take months or years. But to achieve rapid results, you need a plan. There are five steps you need to undertake to improve your finance efficiencies, deliver a better customer experience and bring in more money – faster.
Here’s step 3.
– Missed Step 2? Click here to catch up. –
3. Define your success metrics
AR automation can reduce your DSO by 5-25 days.
Before you implement an AR automation tool, be clear on your expected ROI. Here are some areas where you should look to track the success of your AR automation solution once it has been implemented:
- Does it reduce the workload of your accounting team?
- Is the communication generated through the platform an improvement over email and phone?
- Does the integration with your ERP save your team time?
- Does the availability of this platform improve customer relationships?
- Are customers adopting the new platform?
- Do customers enjoy using the new platform?
- Does it increase the transparency of your AR?
- Does it reduce the number of printed documents required?
- Does it lower your DSO?
- Is it cash application easier and more accurate?
- Are fewer invoices going into collections?
Let’s look at some of these success areas in greater detail…
AR automation has been proven to reduce DSO by 5-25 days. This is because it gives customers a convenient way to pay. Instead of printing and mailing a check – or making an unsecure credit card payment over the phone – they can log into their account at any time to submit a payment. And they don’t need to go into the office to process payments. With just a few swipes, they can pay you via their mobile devices when they are out of the office or on the road.
In fact, you should expect at least 75 percent of your customers to use the portal.
Hadrian Manufacturing recently gave its customers an online payment option, and 80 percent of them took advantage of it.
Customers will always choose the path of least resistance. Your customers will use an online payment portal because it’s the easy option. To ensure high adoption rates, look for a tool that customers can use from both desktops and mobile devices. Also choose a platform that lets your customers log in without having to create an account or remember a password.
Giving customers convenient, online payment options will help you get paid faster. In turn, this reduces your DSO and improves your cash flow.
In the next blog in this series, we will discuss the next step in transforming your accounting processes – going beyond the payment portal.
To learn more about how to transform your accounting and finance processes, grab a copy of our guide.