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How to Automate Your Accounts Receivable?

Accounts receivable management can't be done manually. It's undeniably unsustainable as it eats up to 90% of CFOs' time. That being said, companies should consider AR automation to turn the tide. Let the system do the number-crunching so you can spend more time getting deeper insights into financial forecasting to make data-driven business decisions and enable growth.

What is accounts receivable?

Accounts receivable (AR) is the current asset account on the balance sheet that shows how much money is due to a firm. It is created when a company allows a buyer to purchase products or subscription/installment services on credit.

Must-haves to automate your receivable

Manual AR processing is not only overwhelming for CFOs or AR professionals, but it also leads to compliance breaches, lost documents, and productivity. Automating your accounts receivable can help you reduce your DSO, improve cash flow, eliminate human error and effortlessly turn delinquent accounts current. But what goes into AR automation? What are the must-haves that you should consider to automate your receivables? Focus on these three things.

Different ways to automate your accounts receivable

If you want your business to go paperless and improve the efficiency within your teams, automate your receivables to make them simpler and easier. There are many ways to automate your accounts receivables; for instance, you can use billing software for your subscription-based business and accounts receivable software for a service business to save time chasing unpaid invoices.

Cross-platform compatibility

When you automate your AR process, choose software that has cross-platform compatibility because a cross-platform compatible application can be used on different devices no matter what types of operating systems your employees are using. Cross-platform compatibility is crucial for businesses where different employees work on a single software using multiple devices or operating systems. For example, a cross-platform compatible application may run on Windows, macOS, and Linux operating systems and work with an iOS and an Android operating systems while delivering the same experience.

Insights on your KPIs

KPIs, or key performance indicators, help you track your business growth and identify areas that need improvement in performance. When you get deeper insights into your KPIs on a regular basis, you will be able to improve operational efficiency, understand how your business is doing, and what you can do to improve its cash flow. KPIs such as DSO and Receivable Turnover Ratio can be extremely important when you automate your receivables because they directly influence your cash flow.

Right payment platforms

Giving your customers better and more convenient ways to pay you money can improve your AR processes. So, it's important to choose the right payment platform that will work for your clients/customers and your business. It will make a significant difference in improving AR. The right payment platform can help speed up the collections process, track payments, invoices, and credits, and give you a clear picture of how much money is owed and when expected to be paid.

Use your billing software

A cloud billing software like Upflow can help business manage their subscriptions and billing with flexible plan creation and management. If you own a subscription-based business, you spend most of your time in contract renewals, managing sign-up pages, etc. Billing software has extensive customization features to enhance the A/R performance of your business.

Use accounts receivable software

Accounts receivable software automates the collections process, schedule recurring payments, track invoices due, and send automated email reminders. You can also integrate your AR software with QuickBooks and any other accounting software you use, thus saving you time, human labor, and money.

Get in touch

If you think that the accounts receivable process is getting on your nerves, and you need help, contact Armed Slack right away. We have a team of experts with hands-on experience in helping SMEs streamline their accounts receivable using automation. We’ve been helping entrepreneurs manage and improve their cash flow for a while. Trust us; your critical financial data is in safe hands.