When business is strong and things are going well, it seems there is plenty of time to get around to implementing new processes and new innovations. Then a crisis hits, and weaknesses within your processes become glaring. For accounts receivable teams, these weaknesses can slow collections and strain customer relationships.
Manual and antiquated accounts receivable processes can be restrictive and require hours of unnecessary work. When compared to fast-moving transactions that customers expect, it’s no wonder leading enterprises are using digital processes and automation to speed up service, remove human errors, and offer the functionality that traditional methods lack.
With an increasing percentage of people relying on technology in both their personal and business lives, paper transactions can be frustrating and delay on-time payments. It is important to meet customers’ needs and provide them what they want: a reliable, simpler, faster, better experience. In return, accounts receivable can expect better results. Indeed, a 2016 Aberdeen Group study showed that companies with electronic accounts receivable processes enjoy a 91% on-time payment rate, which is 38% greater than companies not utilizing an electronic solution. Taking it a step further, with the increasing adoption of electronic and automated accounts payable solutions, just imagine the frustration accounts receivable teams can cause their customers by mailing them a paper invoice.
Electronic and automated invoice-to-cash solutions provide a great opportunity to accelerate cash flow, lower expenses, and improve profitability. In a cost-conscious market, manual and paper-based processes require countless hours of employee time and resources– needless expenses that can damage a business.
Electronic invoice-to-cash solutions are fast, efficient, and automatically multi-task, which means lower costs and increased efficiencies. In fact, according to the Aberdeen Group, automated solutions can provide up to a 51% cost savings per transaction. The great news is that the savings don’t apply only to accounts receivable, accounts payable teams also benefit from electronic invoicing and payments, and enjoy a similar savings rate.
Businesses are facing countless challenges and stresses in the wake of the pandemic, but invoicing and payments shouldn’t be a part of them. Integrating a fully automated accounts receivable solution eliminates payment friction and frustration for both accounts receivable and accounts payable.
While the coronavirus pandemic has been the catalyst for companies to re-examine their business operations, none of the weaknesses found have been caused by the virus, meaning they are not going away with a vaccine. Forward-thinking companies adopt automation because of the cost savings, customer visibility and control, and increased convenience.