Harnessing the Power of Automation Software to Improve Your Order-to-Cash

Many businesses start by focusing on the customers with the biggest past-due balances and those who are most likely to default on payments or have their accounts become uncollectible. Accounts receivable automation software, which works similarly to customer relationship management software, allows you to specify the characteristics of the customer base you want to reach and makes it simple to stay in touch with them.

Fremont, CA: It could be time to automate accounts receivable administration if your receivables team exerts more effort than ever to maintain cash flow and collect payments. Here are the actions you can do immediately to boost team output and lower days sales outstanding (DSO), as well as how accounts receivable automation software might be useful.

Assess the state of your receivables. Understanding which customers provide the greatest risk of nonpayment aids in making wise decisions and prioritizing collection operations. If you haven't already, it's time to assess your aging balance, at-risk cash, and other signs of your client's financial health. Additionally, it's critical to regularly check on your order-to-cash process and compare your team's cash prediction with daily performance.

Modify your collecting approach. Prioritize your accounts receivable actions around defined objectives to optimize the amount of receivables you collect. Many businesses start by focusing on the customers with the biggest past-due balances and those who are most likely to default on payments or have their accounts become uncollectible. For instance, accounts receivable automation software might offer warnings and reports that prompt collection calls or emails earlier if your goal is to reduce DSO. Your team can benefit from useful consumer insights provided by artificial intelligence (AI) through tools for payment date prediction, which can assist when to schedule follow-up calls and modifying the order-to-cash process.

Encourage the use of electronic payments. Now is a wonderful moment to incorporate credit cards and other electronic payment methods if your company does not already. Customers will have more time to process, approve, and handle any invoice-related difficulties if they receive and pay invoices electronically. This will save costs associated with managing accounts receivables. Invoice delivery status, collections reports, and other important data are also displayed on dashboards and reports by accounts receivable automation software, making payment issues feasible, reissuing invoices, and monitoring the entire order-to-cash process.

Provide flexible payment terms. You may encourage clients to pay invoices sooner by providing early payment discounts and electronic payment options. To help certain clients better fulfill their payment commitments, you might also consider allowing them to spread their debt over time. A win-win situation for you and your clients can be achieved by using accounts receivable automation software to offer autopay options that let customers pay in installments.

Control client relationships. The greatest method to avoid bad debt is to become adept at foreseeing it, which will help you reduce uncollectible accounts. Both proactive receivables management and solid client connections are required for that. Both gain from automated accounts receivable systems that utilize analytics to evaluate and forecast customer payment behavior and from communication tools that allow automatic messages to be sent to clients with high outstanding balances or who are in high-risk categories. Accounts receivable automation software, which works similarly to customer relationship management software, allows you to specify the characteristics of the customer base you want to reach and makes it simple to stay in touch with them.

Foster internal cooperation. Teamwork is essential for efficient accounts receivable administration. When a client requests an installment payment plan or challenges a charge, team members must collaborate to share information and find solutions. You may create, assign, and monitor jobs like these in your accounts receivable automation software when you automate your order-to-cash process. Online solutions for tracking team performance and verifying that the collections approach is properly used can also keep management and other stakeholders informed. Accounts receivable process automation can also manage employee workloads and monitor team activities.