This is Ned.
Ned is an AR leader. And an all-around good guy to boot.
His primary goals are to lower costs, reduce DSO and improve customer relationships.
Ned’s department relies on an ERP system to help achieve these goals. Pretty standard stuff.
Unfortunately, there are some critical AR functions that Ned’s ERP system can’t perform. This leads to bottlenecks, which leads to slower payment collection, which leads to Ned and his team feeling frustrated. Ughh!
Has Ned ever considered an AR automation solution?
“Yeah, but I’m a bit cautious about making a drastic change,” says Ned. “Our team has a specific way of doing things. Plus, our ERP system works fine … I’m afraid this will only add complexity.”
Does Ned sound like you? Maybe a just a little?
This is what Ned (and you) should know about AR automation:
The AR modules offered by ERP/accounting systems work great for managing AR records and performing other general credit-to-cash activities. Alas, it takes a lot more than that to run a top-performing AR process these days. That’s where an AR automation solution can ll in the gaps.
Simply put, it’s technology that helps you automate what should be automated in the AR process — those manual activities that make your team unproductive, your customers unhappy and your bottom line underwhelming.
A good way to think about automation is by exploring all the things it is NOT:
IT’S NOT A REPLACEMENT FOR PEOPLE.
AR can’t and shouldn’t be fully automated. Instead, think of automation more like a highly specialised team member. Speci cally, one that never takes a day off and helps your team be faster and more strategic.
IT’S NOT A REPLACEMENT FOR ERP SYSTEMS.
Automated AR solutions actually maximise the value of your ERP system by augmenting the areas it falls short in — automated reporting, workflow and invoice delivery (more on all these later).
IT’S NOT DIFFICULT TO USE OR INSTALL.
Delivered via the cloud, AR automation can be installed rapidly with limited disruption or use of IT resources. Its simple, intuitive setup closely matches how you already do business. Yes, it’s a solution even YOU can manage.
- Thing #1: Automate the delivery of invoices & statements.
- Thing #2: Give your team a clear snapshot of their day.
- Thing #3: Send dynamic automatic payment reminders.
- Thing #4: Track root causes of late payments.
- Thing #5: Measure KPIs (beyond just dso).
- Thing #6: Offer customers a self-service portal.
-Written by, Jesse Hopwood