Have you heard the buzz around accounts receivable (AR) automation? According to PayStream Advisors over 32% of medium to large-sized companies have automated their AR and this number continues to grow. Why? It simply comes down to money. The cost saving benefits of automation save the large opportunity cost that is often overlooked in the traditional AR process. How big is this opportunity cost?
Due to this opportunity cost, in this past year, we’ve seen the race to automate and adoption of AR automation kick-start. AR teams now shift the time they spend on mundane administrative work (matching payments to invoices, sending payment reminders to overdue accounts, chasing customers with phone calls and emails) to communicating with customers and settling disputes. Automation has freed up time for this value-added work that has a real impact on improving DSO, shrinking overdue payments and reducing bad debt. In addition, automation has significantly improved AR efficiency. The centralization of all AR within an online portal provides finance teams with all the information they need at their fingertips including DSO metrics, invoices, payments, top overdue accounts, and records of customer collaborations.
The emerging space of AR automation finally provides AR teams visibility into the once ominous black hole of outstanding invoices. Now you can see when and how many times a customer opens an invoice and follow up with them within the portal. Does this all sound too good to be true? Take a look at Metroland Media’s experience…
If you haven’t started thinking about AR automation, the time is now. With increasing adoption, traditional AR processes will soon become archaic. As you learn more, you’ll quickly see how reaching the finish line first with an AR automation tool will give you a competitive edge – customers will find it easier to do business with you, most likely getting you paid first or even faster.