The manual process of creating, uploading, and sending invoices to clients is not only inefficient but also at risk of error. By automating these processes, you can free up your time and focus on some other higher-value work.
Capturing data manually is a time-consuming and labor-intensive process. By using an automated accounting system, you will have the technology to reduce this workload. There are many people who consider AR automation as the death of accountancy. But, the truth is that it offers an opportunity to take the load off and learn some skills.
For accountants as well as business leaders, automated systems are an opportunity to get more money for their buck. This will result in less stress and more work. With a combination of upscaled and efficient accountants and an automated system, you will have a winning formula. With these programs, you will be able to create lists, send reminders, create invoices in less time, and have better debtor management. It is also possible to integrate these with different payment types like payment portals, bank transfers, and credit cards.
Replacing manual AR processes with automation
When you automate accounts receivable, you automate all the processes using software that helps you prevent errors, save time, and reduce costs. By streamlining and automating your manual accounts receivable processes, you will save yourself from time-consuming and repetitive tasks. This involves everything, including credit management, reconciliation, and invoicing. Every step will be optimized, which will result in improved cash flow.
Here are some more reasons as to why you should automate your SME Accounts Receivables.
1. It is easy to use
When you automate your accounts receivable system, you no longer have to duplicate your work or format your documents. During your initial setup, all the data from the accounting system will be pulled automatically into the software. Thanks to the two-way integration, both of your systems will be updated, which will save you a lot of manual data entry work. You will have access to all the account information digitally, and you will be able to pull up payment histories and reports on customers through a few clicks.
The software that will be installed for automating your accounts systems will help you in other areas as well. It can be used by the management, impact cash flow, and speed up the workflow. Managers can use it for keeping an eye on their teams to check if any changes have been made and if they have been working efficiently or not.
There is a certain level of automation in almost every accounting program. But, for the automation of accounts receivable, you might need a separate product that can provide an advanced function. You can integrate them with your existing systems as well.
2. It will update your operations
If you are still using a manual system, it will have a negative impact on your cash flow and your company’s growth. You won’t be able to reach your business goals and increase your revenue. If you automate your accounts receivables, you will have some stability in the process of recording b2b payments, invoicing, following up, and flagging problems like queries and invoice disputes. All the data is gathered automatically so that there is no manual data entry work. It will also alert you about any trends or payment issues associated with outstanding payments or bad credit.
With a manual system, you will be spending more time on sign-offs, signatures, administration, and creating datasheets and documents. The automated system will help you ease on the ground work and offer a user-friendly, quick, and efficient alternative.
3. It will improve your employee retention
This is an unexpected benefit of having an automated business system that is simple and efficient. Employees who are continually confused and stressed and feel under pressure are not likely to stay with your company. If they have to perform repetitive manual tasks like invoice chasing and data entry, they will lack motivation. It will also increase human error. But, if you automate these monotonous tasks, they will be more relaxed and focused on doing their job, perform better, and stay with the company longer.
Having happy employees will result in happy customers. When your customers deal with a helpful and friendly employee, they are more likely to remain your client for a long time. It will also help with less stalling and better payments.
There are a lot of companies with outdated systems because they are fearful of the change. Introducing accounts receivable automation can be daunting. But, once you do it, you will be able to see improvement almost immediately.