Almost everything can be automated in today’s world – creating a presentation, posting content on social media, proofreading articles, and other pieces of writing, or even filling up online forms. All of this (and more) can be easily automated, saving you time that you can, later on, dedicate to more important tasks. The same situation is present in the business world – there are tons of tasks that can be automated.
Have you ever heard about account receivable software? If you haven’t, let us explain what it is exactly. AR is a tool that helps in optimizing your company’s customer invoicing and payment processes. Its purpose is to make sure that all the customers paid for what they have received, be it goods or services.
So, why exactly is getting an account receivable software one of the best decisions of your business life? Well, that’s what we will be looking into in the article below.
Improves Your Cash Position
Just like everyone, as a business owner, you also have bills to pay. However, this can be problematic when your customers are not paying you on time. AR software not only reminds your customers about their payment, but it also makes it easier for them to pay. It gives you a clear picture of your cash position.
What’s more, some AR apps give you a statistical forecast, which is based on your customer’s historical payment history – this gives you an idea about how much cash you should be receiving in the next couple of days.
Helps You Save Time
You will be surprised at how much time one could spend trying to figure out who to call, when, and why, just so that they can get paid for their services or products. Let’s just say that it’s a lot. However, using AR software can help with that.
According to a study performed by Paystream Advisors, companies that invested in AR software were able to:
- Reduce the time they spent on prioritizing and preparing for calls from 15% to only 6%
- Reduce the time they spent managing disputes from 40% to 13%
- Increase the time they spent on soliciting customers for payment from 20% to 62%
Improves Customers Service and Satisfaction
In some cases, it’s not the customer’s fault that the payment is late, but yours. The invoice might not have been sent early enough, disabling them from paying you on time, or there were some problems with the invoice. Most of the issues connected with invoices are related to incorrect or missing order information – something can easily be preventable.
All these problems might have an impact on the customer’s satisfaction. Imagine how frustrating it can be for a customer when you call them for late payment that is actually your fault because it didn’t reach them fast enough or that it came with mistakes.
AR software can help you with that, as it automates the invoice delivery to your customers, as well as sends you notifications if there is any problem with an invoice. It provides you with everything you might need in one location, which gives you the chance to serve your customers better, thus improving your relationship with them.
Reduces Administrative Costs
We live in a digital world, where almost everything is getting moved into the internet. As a company, it’s important to follow those trends, as nowadays, customers appreciate businesses that make it easier for them. After all, who wants to wait to receive their statements in the mail when they can just choose another company and have it delivered straight to their email?
What’s more, mailing documents such as statements and invoices to your customers generates additional costs since you have to pay for the ink, paper, printer, shipping, and so much more. The money you save can be spent on improving your business, to make potential customers even more willing to choose your company instead of others.
The Bottom Line
Today, almost everything can be automated. We live in a digital world, where almost everything is being moved into the internet – shopping, learning, even doctor visits can be done online. The same thing happens in business – why would you spend time completing tasks that technology can easily do?
Thankfully for entrepreneurs, there are several tools available that can make almost every task, even the most daunting one automated, meaning that you can utilize it on more important things instead of spending time completing it.
One of those tools is account receivable software, which can easily be one of the best investments you can make for your business – for reasons why stated above and more. Think about it.