Why you need a professional
accounts receivable solution
Why you need a professional accounts receivable solution
Debtor days are a bugbear for most businesses, diverting human resources, hindering cash flow and affecting the business’s ability to grow. However, few businesses have addressed these issues by optimising their accounts receivable processes to make the generation, collection and dispute resolution of invoices fast and efficient.
Moving from a manual, paper-based accounts receivable workflow to an automated system means you and your staff will have instant visibility of the status of all invoices, with reduced wastage both in time and cost, fewer errors and better cash flow forecasting.
This guide provides a quick overview of the potential implications and risks associated with traditional accounts receivable processes. It then introduces 'Six reasons why you need a professional accounts receivable solution’ to help you identify how you might improve your processes and get those debtor days down to a minimum.
Take the following poll (right)
to see how you compare to
How do you rate your current accounts receivable process?
- We use purely manual tools and processes
- We use a mixture of manual and automated processes
- We use multiple software tools which are loosely integrated
- We have a professional solution, but it doesn’t provide everything we need
- We have a fully automated process with transparency at every stage
Six reasons why you need
a professional accounts receivable solution
Six reasons why you need a professional
accounts receivable solution
1. Control of your most business-critical documents
for better cash flow
Cash flow is the lifeblood of your business. To be able to meet your customers’ demands and to enable the business to grow and be more efficient, it is vital to ensure that you have good control of accounts receivable.
A professional accounts receivable solution will generate and produce invoices quickly and cost effectively. Immediate invoice generation means no more batching of a week’s or a month’s worth of orders, saving you valuable days and ensuring that the number
of debtor days does not spiral out of control.
2. More accurate cash flow forecasting
In an ideal world, it would be easy to ensure that your business operated on a full cash collection basis. The reality is that this is rarely, if ever, going to happen.
Even more reason, therefore, to use a professional accounts receivable system, which will provide immediate reporting on 30/60/90 days aged debt, helping you to plan business decisions around accurate data and realistic forecasting.
3. Document distribution via multiple channels,
helps reduce costs
Printed invoices sent by post are expensive to produce and to distribute. Why continue to bear these costs if your customer might prefer to receive documents electronically?
With a professional accounts receivable system, you can easily generate and distribute invoices in the channel that each of your customers prefers, whether that is paper, email or SMS. That way, your customers will be happier, and you will have potentially saved your business significant production and mailing costs.
4. Compliance and audit traceability
Using automated processes for generating invoices will ensure that all such documents meet fully with brand and compliance requirements, presenting the necessary customer information in easy to understand formats.
The digital records produced also give you and your staff instant access to business-critical documents within a few mouse clicks, giving you complete visibility of payment due dates and possible disputes. It puts information in the hands of those who need it, immediately.
5. Seamless integration with existing IT and document management systems like DocuWare
There need not be any impact on your existing IT systems when you implement a professional accounts receivable solution. It can sit next to your existing systems and extend their functionality, and a back-up will always be available if needed.
It can also easily be integrated with document management systems such as DocuWare, allowing your decision makers to be completely up to speed with all the relevant information, helping them get to the right conclusion, quickly.
6. Less manual work, fewer errors,
faster dispute resolution
Digital technology can take a host of repetitive, simple tasks out of human hands, and this is another benefit of a professional accounts receivable system. By automating these tasks, you remove the potential for human error.
In turn, this means there will be less invoices in query, which will improve customer relationships. When there are disputes, you will be able to investigate them more quickly and easily because staff have full access to real-time document records. The end result is the same: your business gets paid more quickly, cash flow is better, and debtor days are reduced.