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What Is AR Automation? How Can I Benefit As A Business Owner?

Accounts receivable automation provides corporate treasurers to transform their accounts receivable process using technology. Traditional methods to process customer payments involve receiving the payment type, matching to a customer record, posting (crediting) your customers’ account, and then making the deposit at your bank. Moreover, electronic payments are increasingly used by your customers and these payments also create reconciliation challenges. Tin all cases, the increases the growth of your customers results in more processing delays and your invoice-to-cash process extends. Most companies try to solve the problem by adding more staff as your sales increase.

How Does Accounts Receivable Automation Help Save Time & Effort?

Manual payment reconciliation requires accounting staff to collect payments from each channel (cash, check, ACH, credit card, payer portals, just to name a few!) and match those payments to your customers’ accounts receivable or billing system.  In some cases, the process also includes making the deposit to your bank.  In addition, depending on your customer base, you may be collecting payments in the field from salespeople or drivers.  This results in more delays as these payments are then collected and delivered to the accounting team at the end of day, or in some cases, mailed or even couriered overnight.

Using AR Automation, many of these tasks are automated using artificial intelligence (AI).  AI coupled with robotic process automation eliminates most of the manual tasks with a significant smaller effort required from your accounting staff.

What Are The Benefits of Accounts Receivable Automation?

 

The benefits of accounts receivable automation include:

  • Increased Efficiency
  • Reduction In Costs
  • Improvements In Customer Service

 

Increased Efficiency – The accounting team becomes more efficient as the payment process is standardized across all channels.  This results in efficiency gains as the payment reconciliation process is simplified for any payment from any channel.  As the efficiency continues to improve, your accounting team can redeploy their efforts to more meaningful tasks including payments discrepancies and collections.  The faster your team can begin discrepancy management, the more dollars you can collect sooner which results in reduced collections and payment delays.

Reduction of Costs Through Cash Flow Improvement – AR Automation not only standardizes the payment process, but gets those payments into your bank faster, resulting in improved days-sales-outstanding.  As previously mentioned, the discrepancies can be resolved sooner, resulting in improving the receipt of those funds and reducing subsequently collections.

Customer Service Improvements – Through AR automation, your customers are benefit by having multiple payment channels as well as the opportunity to record their payments promptly.  This results in fewer credit holds because the payments are processed the same day they are received.  The result is your customers can purchase more products and services from you, increasing sales.

AR Automation With DadeSystems 

Most businesses have made investments in their distribution systems, CRM, ERP systems, but have lagged in their automating their AR workflow for payment processing.  AR Automation is a cost-effective solution that can return a positive return on investment in a very short timeframe.  The result is improved cash flow, happier and more productive accounting teams, and better service for your customers. Contact DadeSystems to request a demo of our advanced AR Automation systems today to improve your business.