Are your accounts receivables still reliant upon checks? Are your business processes still heavily manual, receiving payments by mail and dependent upon teams to prepare deposits and reconcile manually? Several macro-economic trends indicate that organizations now, more than ever, should be utilizing electronic payments. Not only to minimize manual processes and reduce costs, but to please customers who prefer the convenience. The added bonus of getting paid faster will delight finance teams who are focusing on cash flow. Read more
Your customers want to pay you how they want, when they want, and where they want… And of course, they want the process to be as easy as possible. Whether it’s choosing to accept alternative payment methods, allowing customers to pay invoices by ACH or credit card, or introducing simple financing options for larger ticket items, the more opportunities that exist to generate sales also presents the threat of increased manual processes and potential for more human error for your finance teams. Automation, however, eliminates these threats and allows you to offer a more customized user experience, in which your customers pay you according to their terms. Your Accounts Receivable process is a great place to start when looking to increase efficiencies across your business, while giving your customers what they want.
What Your Business Gains from AR Automation Tools
The right AR automation solution will transform your collections process and enable your team to do more with less, better serve your customers, and better manage your cashflow. Here are just 4 of the ways AR automation will benefit your company:
- Reduction in Human Error
Invoice dates and amounts, supplier names, and payment information are all prone to containing mistakes, but when your solution is integrated with Sage Intacct and automated, your team can more feel secure in knowing they are always working with accurate information.
- Faster Collections
Most AR automation tools in the market today enable businesses to accept a wider variety of payment options. With preferred payment options, your customers will feel empowered, and appreciate the ease of use your payment experience provides, allowing you to collect faster on invoices.
- Cash Flow Optimization
By driving faster payments, you free up money that would otherwise be tied up in late paying or overdue accounts. This will help your business optimize its cash flow, enable you to be more competitive in the marketplace, and ultimately, make you better suited to invest in projects that will further grow and scale your business.
- The Ability to Navigate Economic Uncertainty
For many businesses, the current economic environment has created shortfals lin cashflow, leading to significant new challenges. With continued uncertainty surrounding COVID-19, businesses need to make processes digital where and when they are able to. Automating pieces of your invoicing process will enable you, your team and your customers to continue transacting while working remotely, and leaves your business better equipped to navigate future economic uncertainties.
There are many options in today’s market that will automate the entire AR cycle, which is especially crucial for companies that send out large volumes of invoices. Similarly, there are steps you can take using the systems you have in place today to start automating your processes. With 2CP email invoicing, you now have the ability to include a pay link and the PDF invoice from customized email templates for your invoicing directly in Sage Intacct. Watch our video to see how 2CP takes the first step in helping you solve the invoice jam and minimizes DSO:
We all know the iconic scene in Friends when Ross and Chandler navigate a tight staircase with a large couch. Right now, many businesses are also yelling “PIVOT” as they transition multiple aspects of their business model in short order. For many businesses, it’s pivoting to a work-from-home routine and ensuring their employees have what they need to accomplish their daily tasks and continue to be successful in their roles. For other businesses, its more extreme by pivoting their order and fulfillment process. Brick and mortar retailers are the most common example, who in many cases have had to shift to an online ordering and delivery system where one may not have existed before. And then there are the most extreme cases where manufacturers, distributors and retailers have shifted the very product set they make and/or sell to accommodate the changing demands of society. Through all these quick pivots, it’s crucial to not “break the couch” and ensure critical pieces – like customer payments – aren’t broken or lost in the process.
Remote Workforce Shift
Remote working brings about many challenges for organizations, and the AR department is no exception. For businesses that rely heavily on manual and paper-based processes, the current situation is especially tough. It’s important for finance leaders to make the necessary changes now, in order to position their company for survival in the months ahead, and an eventual return to growth.
You’re not at your office to print and stuff envelopes. Your customers aren’t at their offices to receive invoices in the mail. Making your invoicing process fully digital enables you to deliver invoices from your at-home office and ensures your customers can receive those invoices from wherever they are working. Beyond the usual arguments for going digital – time savings, eliminate mistakes caused by manual entry, and save envelope, printing and postage costs – digital invoicing can help ensure business continuity in today’s rapidly changing market, and will help your AR department to efficiently operate and ensure cash flow is stabilized.
Extreme Pivot in Operations
We recently worked with a company that not only shifted many of their internal operations to continue to function remotely, but they truly made the ultimate pivot and transitioned portions of their manufacturing business to address the growing demand for PPE in the medical field. This new line of business required a new sales and distribution method, and it was time to introduce their first online ecommerce platform. Imagine having never sold directly to the consumer, and never having an online shopping process – to having to turn up an ecommerce platform in extremely short order?! In less than a week, we were able to work with this client and their ERP system to launch a fully integrated ecommerce site for the rapid deployment and fulfillment of PPE equipment orders to hospitals and medical facilities worldwide.
While most businesses aren’t facing a monumental task of launching a whole new division and sales workflow in 4 days, this trying time is definitely a challenge for merchants, manufacturers, distributors of all sizes. Technology is available to help the transition, and can be implemented faster than you may think. Whether pivoting your AR to ensure it is easy for your customers to pay you and for your AR department to process payments, or implementing a shift in how you sell and receive payments, 2CP is here to help. Contact us now to find out more.