July 13, 2020
They say the first written documents ever created were ledgers... The Accounts Receivable tools that most companies use today were created shortly thereafter. Want to get more out of your Accounts Receivable team? If you aren’t using software tools to help out your staff, you’re doing yourself a huge disservice. Without these tools, you’re spending unnecessary money on labor that can be easily and cheaply replaced.
Machines have helped us through the ages; making labor intensive tasks cheaper, faster and easier. What can this technology do for you? Collect more receivables dollars for fewer labor dollars. More specifically, they can tell you which clients will probably pay late, automate repetitive tasks, schedule follow ups, and track customer correspondence, provide instant payment options and even self service customer portals.
Knowing your customer trends payment history and behavior is a huge advantage in the accounts receivable game. It allows you to start emailing and calling with friendly reminders before you check the reports and discover several accounts past due. Through rating your customers, you know who you should (under no circumstances) make exceptions for and who it’s “safe” to override the credit limits for. With this knowledge in hand, you can make stronger decisions based on a quick glance at your client’s credit scoring.
Repetitive tasks are either the first ones to get set aside during busy times, or done first when other urgent tasks should have priority. Just because the same task is always there doesn’t mean it’s not important. Having automation software sort out the repetitive tasks for you means your staff doesn’t even have to remember to make those calls, send those emails, or connect the invoices to the right accounts. They can focus their attention on the tasks only they can do.
Imagine having a reminder sent to your problem clients for you. No one has to awkwardly pick up the phone to ask why their payment is late...again. No one needs worry about what to say in the “invoice due today” email that needs to go out. Your team writes it once and out it goes, like clockwork, every time.
Scheduling can be automated too. Your correspondence schedule can be taken care of by software instead of human labor. Your team can schedule reports to be run at certain times on certain days and emailed out to the appropriate people. It’s the little things taken out of someone’s day that frees up a surprising amount of time.
Software can seem expensive up front. It’s not an investment for everyone. But ask how many hours your accounts receivable staff spend on tasks that can be automated and calculate it up over the course of a pay period, most companies find it pays for itself pretty quickly.
Learn more about Armatic's suite of AR automation tools
BY Alyssa LeBlanc
BY Max Golovnia
BY Alyssa LeBlanc
Armatic Co-founder and CTO