April 4, 2020
Let's face it, managing Accounts Receivable manually is thankless work; filled with exhaustive, repetitive tasks, and the occasional upset customer (especially at scale). The endless spreadsheets, follow up calls, reminder emails, etc, can consume so much time and resources, that some businesses elect to completely outsource their AR to, avoid maintaining the personnel needed to deal with this tiresome task. The solution? Investing in AR automation software.
Here are some of best reasons to consider investing in AR automation, and how it can take your business to the next level:
Automation Saves Your Money!
For businesses of any size, the most crucial element (of course) is your money. While the cost to prepare an invoice may seem minimal in comparison to payment you receive; it is important to note those seemingly insignificant costs- and monitor how they add up over time. Some businesses report spending almost as much as $11.50 on creating a single invoice! This estimate may seem outlandish, but when you consider the cost of labor, ink, postage, service fees, and time; it can really add up! Those few bucks may not seem like a big deal at the time you're paying it; but if your business is having to create hundreds or even thousands of invoices per yer, that $11.50 can turn into $115,000 before you know it. Businesses that have implemented AR automation software have reported the cost of preparing an invoice being reduced by up to 90% in some cases (nearly a tenth of the cost!). This reduction in cost can make huge improvements to your revenue intake and cash flow cycle.
More Diverse Functionality
Accounting software like QuickBooks, Xero and others are great at "accounting", but unfortunately they all leave most the "doing" to you. AR automation software can make many of those painstaking manual processes a thing of the past, sending payment reminders, mailing invoices, applying payments, and so on. Additionally, there is very little most accounting systems can do to help you manage the needs of a SaaS or service based business with subscriptions/recurring payments, you're left with the choice of either dealing with it manually, or using a collection of third party applications to fill in the gaps. Programs like Armatic integrate with your accounting/ERP system to keep you organized and on track; but also include a suite of products and features such as e-signature capabilities and reporting tools to help you manage your AR, billing and payments in the most efficient way possible.
Automation Is A Time Saver!
Money you may be able to sacrifice and replace; but your most valuable, finite resource available is you and your employee's time- so why would you spend so much of it engaging in processes that can easily be managed in a fraction of the time? AR automation software like Armatic integrates with your existing accounting/ERP system (Quickbooks, Xero & Sage Intacct & more), and only requires an initial setup of your desired communication rules/preferences. From then on, the system takes care of the rest automatically. That means no wasted time sending reminder emails, chasing down clients with phone calls, or keeping track of your notes on a spreadsheet. Not to mention, speeding up the time it takes to receive and process your payments means you and you team get paid faster.
Reduces the Risk Of Employee Error
Unfortunately, mistakes in the business transaction process from time to time are inevitable. Even the most well disciplined employee can have moments where they overlook simple tasks, or forget to send a reminder email or two. Automating as much of your Quote-to-Cash process as possible will greatly reduce the number of errors that occur; and this is especially true for you Accounts Receivable systems. Mistakes often mean unhappy customers, late payments, and loss of clients. Having to correct accounting mistakes can create huge dents in your reputation, and take lengthy amounts of time to solve. For many markets, you just can't afford to make mistakes where they can be avoided. Find a better way to skip this unwanted hassle, and install an electronic safety net with AR automation. Automating your accounts receivable ensures that the right invoices are being prepared, sent, and received every time without a hitch.
Automation Enhances the Customer Experience
Surprisingly enough, many customers prefer the consistency and anonymity of automated systems, who knew? AR automation software gives you the ability to create a list of rules that we call "cadences" for each client. These cadences give you the ability to choose "if", "when", and "how" many times they receive reminder emails; so that you don't have to make that awkward phone call. Customers report automated reminder emails as being informative and useful, while viewing personal reminders as often inflammatory, and even sometimes harassing. Good customer service is key to retaining current clientele, and also impressing new ones. Investing in AR automation systems help ensure your customers are satisfied with their service, while also paying on time. Happy clients and strong cash flow tendencies? What could be better?
Does Accounts Receivable automation sound like a sound investment for your business? Modernize your Business, with Armatic; a company recognized by G2 Crowd as one of best AR automation software platforms the business. Armatic offers a risk free trial and outstanding customer service every step of the way to help your business thrive. Check out the Armatic way today!
BY Alyssa LeBlanc
BY Max Golovnia
BY Alyssa LeBlanc
Alyssa is handling content development and content planning for Armatic and works closely with our product and development team.