Businesses need to grow to stay alive. But with limited resources and only so many hours in the day, how can you attract, earn, and serve the customers needed to successfully scale your business?
More customers mean more collections, more invoices, more disputes, more delinquent accounts, more cash application, more time, more resources, more, more, more. As your business grows, so do your accounts receivables. So how do you keep up? There are 2 options:
A. Add more resources
B. Make your current resources more effective
Option A, although somewhat effective in the short-term, will limit your ability to grow in the long-term. Option B on the other-hand – doing more with what you have – will allow you to scale exponentially. In terms of accounts receivable, if Option A is hiring more people, what does Option B look like?
The answer: Automation.
By automating the time-consuming, manual AR tasks, you free up time that can then be used to serve the needs of your company.
Growing businesses should look to invest in an AR automation solution for these 3 primary reasons:
1. Work Smarter Not Harder
As your AR grows, the manual tasks around it begin to add up. Tasks such as re-sending invoices to customers who claim to have ‘lost it’, pulling an ageing report from your ERP, emailing/calling all those customers who are overdue, and manually keystroking in check details to your ERP take time. As your customer base increases, so does the time required to complete these tasks. By leveraging automation, those tedious manual tasks are eliminated. Free up time and enable you and your employees to work smarter, not harder.
2. Cash Flow is King
Is your Days Sales Outstanding (DSO) high? Higher than your competitors? Steady cash flow is essential for businesses to fund growth. If your DSO is out of control, it will be almost impossible to meet your growth aspirations. AR automation platforms give your customers an easier way to pay and automate follow-up activities, ensuring your cash flow not only remains steady but improves over time. Getting cash in faster allows you to re-invest in other important areas of the business (sales, R&D, etc.) while not having to worry about increasing headcount in AR/collections/cash app.
3. Good Customer Experience = Customer Retention
A key to growing your business effectively is retaining customers. With limited resources, there isn’t always enough time to answer customer questions effectively or provide them with timely access to their bills or statements. AR automation platforms allow your customers to self-serve. By giving the customer control over their invoices they can make a payment on their desktop or mobile phone during business hours or catch up on payments in the evenings. They can access bills, raise disputes and make payments 24/7/365. Don’t be a bottleneck for your customers – give them the keys to get all the information that they need.
It’s clear to see how important the investment in automation is when you are managing a growing business. Set your business up for growth by implementing the tools that enable you to do more with less.
Want to learn more? Read ‘How to Get Your Growing Business Customers to Pay You Faster with Less Effort’ next.