The Essential Guide to Accounts Receivable Automation

It’s most popular as an AP tool, but it has expanded to cover AR as well—and offers ample automation features in both categories. It integrates with most financial and business software and offers bi-directional syncing with most major accounting platforms. In such a scenario, AR automation is a game-changer for businesses, as it optimizes cash flow and minimizes the time and effort spent on routine financial tasks. With automation, businesses can focus on higher-value financial activities, and the likelihood of errors decreases significantly. Note that the method of delivery can impact the speed and efficiency of the payment process. Using electronic invoicing can help in achieving faster payments and reducing delays.

Build a clear As-Is and to-Be State of automation

1. When you have the right tools, AR automation will not only help your business grow, but it will also save you time.
2. Intuitive design and ease of use can lead to higher adoption rates and improved efficiency in managing accounts receivable—and other financial needs at a company.
3. Ensuring accurate and up-to-date customer information can be a struggle, impacting communication and payment collection.
4. Centime streamlines and optimizes the AR process, reducing manual labor and errors while improving cash flow and customer relationships.

Give your customers the flexibility to update payment methods, select their preferred payment dates, and opt-out at any time. Your accounting department and finance team are familiar with the day-to-day AR operations so they are in the best position to share the biggest gaps and challenges in the process. Before you find a system to help you automate, follow these best practices for accounts receivable automation. Using AR automation as part of your overall collections efforts will help you ensure that every dollar you invoice ultimately gets to your bottom line. This can turn into a significant advantage for front and back office personnel alike. And by targeting the right accounts and using the right tools, you’ll be able to take the stress and frustration out of chasing down invoices that haven’t been paid yet.

Are late payments, manual collections, and cash posting causing repeated headaches for your business? The following guide explores the most common AP pain points and shares the top solutions to simplify and streamline your receivables. BlueSnap is primarily an online payment solution that also allows you to streamline the entire accounts receivable process from quote to cash. Connect BlueSnap’s automation software to your accounting software, CRM, or ERP for added convenience. Centime is a comprehensive financial management tool that offers advanced solutions to streamline and enhance the accounts receivable process for businesses. Automate your accounts receivable and accounts payable and monitor your cashflow all in one platform.

Best Practices to Improve AR Collections

This point could be missed if you are only focused on selecting the right AR automation software. posting to the general ledger The decision to automate the accounts receivable process can be a high-level, strategic decision from leadership, or it can come from the ground-up, from your AR team. Your accounts receivable process plays an important role in determining the cash flow of your business.

There are several benefits to automating the Accounts Receivable process, many of which will become essential parts of the AR workflow as soon as they’re implemented. Centime integrates through an API connection which facilitates a bidirectional sync between the two systems. This will help you avoid challenges such as misalignment of expectations and a high user qualified improvement property and bonus depreciation learning curve.

By implementing effective accounts receivable automation, you can streamline and simplify your AR processes to make everything and everybody more efficient. This step enables customers to make B2B payments on their invoices easily with their preferred mode of payment. Accounts receivable automation delivers key CX gains and alleviates customer frustrations, boosting their attitudes toward your business.

Working together will help you map the entire AR process from beginning to end, and identify areas for improvement. This will help you identify customer pain points and challenges, as well as potential bottlenecks in the automation process. All of this will be useful in properly streamlining the entire billing to AR collections process. As you can see, the accounts receivable management process has several moving parts. From generating the correct invoice, ensuring the right payment terms are on the invoice, to debt collections, the process can become cumbersome and quite time-consuming.

Invoice Sending

It reduces manual work, saves time, minimizes errors, and optimizes processes using technologies like RPA, AI, and predictive analytics. Cash flow delays and scalability issuesSlow collections and late payments impact cash flow, restricting the ability to invest in growth opportunities or meet financial obligations. Implementing end-to-end accounts receivable automation can result in substantial cost savings, exceeding 70% in invoicing expenses.

Disputes and discrepancies in invoices require careful investigation and resolution to maintain healthy customer relationships. Automate the creation and delivery of invoices in any conceivable format – electronic or printed – and manage through one easy-to-use interface. Chaser makes it easy to keep track of all customer communications so that you can get a better idea of their payment history. Additionally, take advantage of their interactive financial accounting debtor reports to gain more insight into your customers’ payment behaviors for better planning.