‘Thanks to our friends at EzyCollect for sharing some helpful information about getting paid by customers quicker and improving cash flow’
Cash flow management is critical – but collecting on accounts receivable (AR) can be a difficult endeavour.
Chasing down invoices and tackling late payments take up valuable time that could easily be spent elsewhere. Fortunately, streamlining your AR processes and reducing time and effort spent on cashflow management is no longer a pipe dream. A full-stack accounts receivable management platform can be an invaluable solution to this struggle and boost your overall cash flow success.
An integrated cloud-based platform automates the entire AR cycle, giving you easy-to-use tools to get on top of payments collection, letting you take back control of your finances without all the manual labour associated with traditional processes.
Here are five ways technology will assist in managing those challenging ins and outs of accounts receivables:
- Enable Automated Workflows: This gives you a structured and efficient payment collection process, making sure that nothing will slip through the cracks. Look for solutions with an AR automation workflow that gives you a comprehensive overview of all aspects of overdue and actionable insights, allowing you to prioritise ageing accounts and phone calls.
- Set Up Personalised, Automated Payment Reminders: Late payments are a common issue in accounts receivable, but automating payment reminders can help reduce them. By automating payment reminders with embedded “Pay Now” buttons to be sent to your customers via email or SMS, you can rest assured that they will reach your customers before their due date. Oftentimes, a personalised follow-up goes a long way.
- Leverage Automated Payment Collection: Getting paid on time can be made easy when you set up integrated direct debit for recurring payments, or specific invoices or sales orders. This will not only take away the hassle of keeping reminders for you and your customer, it also guarantees on-time payments.
- Take Advantage of Automated Payment Reconciliation: Reconciling payments manually can be extremely time-consuming. Automating this crucial part of your AR process can save you and your team thousands of hours. An integrated AR automation solution connects with your accounting software or ERP, allowing you to automatically reconcile payments as they come in. This reduces the time and effort required to manage your accounts receivable, giving you more time to focus on other important aspects of your business, such as customer relationships and business growth.
- Offer Customers Streamlined Payment Options: Have you ever heard of the law of reciprocity? If you make online payments easy for your customers (e.g. offer them their preferred payment options, such as credit card, bank transfer, and direct debit), your customers will be more likely to pay you promptly in return. Make your business easy to pay by embedding “Pay Now” buttons on invoices, statements and emails that enable a seamless one-click payment. Options like B2B BNPL can also ensure your business gets paid, while giving your customers flexibility.
Managing accounts receivable can be a difficult task for businesses, but with the advancements in technology, it no longer has to be. A full-stack accounts receivable management platform can streamline the entire AR cycle, making the payment collection process structured and efficient.
By leveraging automated workflows, personalised payment reminders, direct debit options, and automated payment reconciliation, businesses can significantly reduce the time and effort spent on cash flow management. Additionally, offering customers streamlined payment options can improve prompt payments and boost customer relationships.
As technology continues to improve, businesses must adapt and take advantage of the available tools to improve their overall cash flow success.