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The CFO’s Guide to Accounts Receivables Automation

accounts receivable automation

Another classic issue that slows down the closing process is copying data from one spreadsheet to another – from one ledger to the next. During the height of the COVID crisis in early 2020, we were astonished to hear from companies whose accountants couldn’t help because they couldn’t physically go to the office. But the truth is that digital file storage is far safer than moving stacks of paper from one place to the next. You should also pay attention to the scope of the KPIs, i.e. if you can zoom in and out on your metrics. For example, Upflow allows you to directly click on an invoice to access your account from your billing cohort.

  1. You will find that QuickBooks accounting software checks all these boxes—plus much more.
  2. BlackLine Cash Application revolutionizes the invoice-to-cash cycle by significantly reducing the time needed to apply payments.
  3. If you’re looking for information about accounts receivable automation, you’ve come to the right place.
  4. Proactively identify and monitor risk with automated calculation and identification of balance and activity fluctuations.

In addition, software used for accounts receivable can help businesses prioritize collections efforts and identify potential issues early on. With features like aging analysis reports and deduction management, businesses can quickly identify which accounts require attention and take action to resolve any issues. AR automation is a fantastic way to improve the financial performance and cash position of a business. And using a tool to automatically follow-up, collect, and reconcile invoices makes it easy to do.

Electronic invoicing ensures invoices reach customers wherever they are, and can directly integrate with their AP systems to simplify payment processing through 3-way matching. Accounts receivable software is a crucial tool for businesses looking to streamline their receivables management process. With AR software, businesses can automate many of the time-consuming tasks involved in managing accounts receivable, including invoicing, payment processing, and collections.

Predict cash inflows with streamlined AR

Accounts receivable automation delivers key CX gains and alleviates customer frustrations, boosting their attitudes toward your business. Reduce or eliminate manual tasks, allowing AR teams to focus on actions that drive results, and strengthen decision intelligence to deliver significant value to the organization. Many reviewers wrote specifically of FreeAgent’s support team and resources. The solution aims to be just that – a solution for those needing quick and easy accounting. The big draw is that Xero provides a robust and comprehensive platform for accountants, with an interface that non-financial staff can understand and use confidently.

Take demos of the solutions to get a feel of their interface and features. Chat with the solution experts to understand the limitations of the product and any additional costs due to customization or other requirements. However, with numerous options available, choosing the best software can be overwhelming. In this article, we’ll provide you with tips to select the best accounts receivable software for your business. If your books haven’t been updated in a while, payment reminders might be sent out on payments that have been received, but not reconciled.

accounts receivable automation

The transformation of cumbersome manual accounts receivable processes by automating and streamlining systems electronically reduces repetitive and time-consuming (and potentially error-prone) tasks. Different AR automation tools offer different features with varying levels of automation. Software diversification like Upflow helps you manage your accounts receivable process from A to Z, reducing the time you spend on it. All in all, managing your AR with manual processes is inefficient – and frankly a little boring, too. Automation helps you free up your time to focus more on higher value-added tasks.

Improve efficiency

Customers can pay multiple invoices at once, view outstanding and paid invoices in one spot, and securely save payment details. Reduce Days Sales Outstanding (DSO) and improve your working capital with Centime’s automated AR software. Our AI-driven tools simplify the customer payment experience to reduce your total number of overdue invoices and improve key financial metrics like your Collection Effectiveness Index. AR automation streamlines and enhances AR operations by applyingdigital technology to the low-value, manual tasks that make up a greatdeal of accounts receivable work.

accounts receivable automation

Collecting cash is the lifeblood of any business, and as an accounting firm, we need to know how to help our clients collect cash in the easiest way possible so that their businesses can grow. “Using Centime AR, we now automatically remind customers when their payment due date is near. Centime AR has made our incomings more predictable and made our team more productive.” Centime offers both standalone and all-in-one cash management solutions depending on your business needs. A solution like QuickBooks Online can help your business work smarter throughout the year, making tax season much more manageable. And with QuickBooks Online Plus, you’ll be equipped with a powerful inventory and order management system.

As you know, keeping financial data safe is essential because of the increase in cyberattacks over the last decade. Not only is cloud storage safer, but it’s also accessible from anywhere, allowing you to keep tabs on and share financial information at any time. We’ve already mentioned how automated solutions automatically keep track of the customers’ invoices, remind them of their obligations on the due date, and collect payments accordingly. But there are some pro tips that you can take advantage of in your automated solution to achieve the best results. Automating accounts receivable processes beyond the document delivery and payments of handling of EIPP requires Corcentric Managed AR.

In this guide, we’ll give you a rundown of what automated accounting is and how it can benefit your business. For example, connecting a CRM to an invoicing tool can automatically create invoices based on sales records, and connecting it to a payment gateway can let you monitor payments in real time. By speeding up invoice delivery and payments, you reduce days sales outstanding (DSO), liberate working capital and improve cash flow for your business. Accounts receivable invoice automation greatly reduces the time it takes to process your paperwork and payments, freeing AR teams to get more done. Streamline customer enrollment from weeks to days by removing the wasted time spent e-mailing and uploading documents to customer invoicing portals.

Accounts Receivable Automation Solutions

The more documents and data points you process, the more likely you are to slip errors in without noticing. Entry-level jobs may find that much of their work is automated, which may change the ways new accountants gain experience and training in the field. AI technologies not only measure and track DSO, but they also use historical data to make predictions about how DSO will change in the future. Whether you are a buyer or supplier, learn how managed services can help you free up working capital.

Supply Chain Business Analyst

You decide how much automation you want in your process, and you can have more personalized exchanges with your client’s thanks to it. Centime integrates through an API connection which facilitates a bidirectional sync between the two systems. Use a shared workspace to document customer interactions and ensure you’re on top of every inquiry. Proactively identify and monitor risk with automated calculation and identification of balance and activity fluctuations.

AP Automation Case Studies: Analysis of Benefits & Use Cases

You can even directly upload your receipts, which are then automatically saved and categorised. Close the books 4x faster, collect over 95% of receipts on time, and get 100% visibility over company spending. You’ve heard tell of the coming robot takeover, where jobs will be replaced and experience won’t matter anymore. It’s essentially an ERP (as we saw above), built for professional services companies. But while NetSuite is more comprehensive than most of the other tools in this post, it’s also more complex and takes far longer to get started. The transition to an ERP is a big decision for many companies, and CFOs shouldn’t rush into it.

Accounts payable automation allows customers to set up rules to establish a workflow for all invoices to follow; then the software does the rest. You can even set up invoice routing so they’re sent to the appropriate parties for approval. With more efficient invoice approvals, you’ll benefit from faster payment processing, meaning the money will be available to use sooner. This can also reduce the time and energy spent tracking down outstanding invoices, allowing you to keep the peace with your customers. An automated accounting system streamlines the financial management process, saving small business owners a lot of time that can be used for other important business tasks. By automating certain steps in the process—sorting expenses, for instance—you can also reduce the risk of errors and subsequent problems down the road.

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