Introduction
What comes to your mind when you hear the term accounting? To put in a short definition, it can be described as a data entry system that involves dealing with a lot of numbers and focusing on building or implementing few strategies which can improve the overall finance of the business and you can make it sustainable for an extended period.
And today with this article, we will be learning about how accounts receivable automation software will bring in the desired cash flow. Recent surveys have shown us that all the team members of the accounting group invest around 85-90% of their daily time in dealing with the financial matters and the rest of the period with analyzing the real numbers.
This is putting serious damage to their productivity since most of the time is getting wasted on the less prioritized things. Hence, they are unable to bring in more ideas or creativities, which makes the financial strategies weaken up for the organization. It can put a deep hole in the financial stability of any company, and they will end up spending more than what they could take in their account.
Bringing in the automation of the account receivable would help in capitalizing on numerous benefits it has in the offering, and it is more than just downloading a new screen saver for your system. There are various important steps involved which are needed to be taken into account with the accounts receivable collections software for your team and the company.
ANALYZING THE WORKFLOW PRESENT IN THE CURRENT SCENARIOBefore bringing in new changes and have a digital transformation, you need to understand the current workflow and where the actual problem exists with your present accounts receivables management process. This will help you in a great deal for gaining a better understanding and then further building up the solution system as per the individual needs. For instance, let's talk about a hypothetical account receivable workflow:
What is the current cash flow situation in the company?
You need to know the situation of the cash flow in your company present at this moment, and this has to be the exact numbers since marking good or bad won't help in assessing the situation. Based on that, you can further bring in the action plan in the form of accounts receivable solutions that suit your need.
What is the process of sending invoices to the customers?
The process or method your company has for sending the invoices to the customers will put an impression of how long it will take them to make the payment or whether they will be doing the payment or not along the timeline followed for the payment.
How does a customer is being reminded regarding the late payment?
There are a lot of factors involved in the late payment by your customer, and you need to send the reminders on time so you could stay updated with all the payments which will keep running the cash flow in your company. If your methods are still old school where the spreadsheets are the best way to go for the reminder, then there is no doubt that the whole process will take a lot of time for completion which will further delay the payment receiving by the customers.
The available payment methods
You want your customers to have an easy payment process without facing any hassles that will encourage the customer to pay on time for the next payment as well. Make sure your accounts receivable system is not making them restricted to make the payment forcefully in few specific payment methods only.
Data inputs used for the billing
Prepare a list of all the inputs which you can select for choosing the software you bring for the automation as per the required needs.
THE POTENTIAL AUTOMATION TOOLS IN ACCOUNTS RECEIVABLENow that you are done with the basic understanding you need to have of the ongoing workflow in the accounts receivable; you need to put your focus on the various automation tools. This might seem a daunting task, but you could focus on the following points to move forward:
Form a discussed plan
Sit with your team members and focus on the timeline you need to follow, the upper budget, requirements of your software, and much more. Focus on each part carefully to ensure the best outcome.
Involve every member
Since the new accounts, the receivable managementsystemwill be followed by the team member and they will have access to the software, so make sure you have insight from each one of them.
Do proper research
Since this is a big decision, you need to make sure that you are accounting for various options available in the market and after doing proper research of all the service information or demo they provide, make the best decision out of them.
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