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Best AR Automation Software to Manage Your Account Receivables efficiently

Create an efficient pricing model and mitigate risk with AR Automation software

The accounts receivable process involves creating invoices for your customers, accepting payments for products and services, and streamlining the entire credit management system through digital methods. In short, you eliminate time-consuming tasks and improve cash flow by bringing money for your company faster. 

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AR automation software allows you to save time-consuming manual AR processes. It takes over costly processes such as manual print and post, credit review, payments reconciliation, PDF-over-email invoicing, and dispute handling. As a result, the efficiency of your AR team will significantly increase and costs associated with paper will go down. It is one of the the primary business benefits of an ERP system.

AR automation ERP software will significantly reduce the time it takes for your AR team to check paper invoices, monitor invoice statuses, and process payments. For example, reduce the time it takes to enroll customers from weeks to few days by eliminating the time wasted sending invoices and uploading customer information on invoicing portals. In addition, your accounts receivable team can increase their efficiency by automating the invoice distribution process that allows adhering to delivery schedules. 

By automating your accounts receivable processes, you can significantly improve data consistency with real-time responsiveness. It helps, especially while managing complex systems and multiple customers. AR automation software ERP implementation also increases accuracy by eliminating errors such as overpayments, duplicate payments, and fraudulent payments that help reduce bad debt in the long run. Moreover, it can automatically collect payments, optimize cash flow, contain costs, and mitigate risks that help control the company’s finances.

The AR team can configure the accounts receivable system according to the companies’ needs. The best part is that the accounts receivable processes are intuitive and anyone can access them, thereby significantly increasing control and visibility. The AR team can categorize workflow information to check invoices based on various parameters like invoice age or client. 

Invoices are one of the ways to communicate with customers. Other ways include sending support documents electronically from the automation solution and uploading communications from customers into the workflow. Remember that customers like associating with companies that communicate periodically and may reward by making payments faster. 

One of the biggest reasons for late payments is paper invoices. They take around 3 to 5 days to arrive. On the other hand, electronic invoices arrive instantly, allowing the company to initiate customer communication immediately. Other benefits include cutting down on delivery times and postage costs. 

A company has various departments that require details relating to finance. It will be easier for your accounts department to share critical information with an accounts payable and receivable ERP  system. It can export required data instantly and set filters for ad-hoc reporting using various formats, such as Microsoft Excel or Google Spreadsheets. 

The AR software brings varying information points on one platform. You will get details such as customer information, invoice details, shipping documents, Bills of Lading (BOL), payment options, aging tasks, and comments on a single platform that makes it easy to access information and brainstorm strategies effectively. 

FAQ

The AR automation system sends the invoice to the correct customer electronically without any human intervention. The email message can be configured based on the customer, type of invoice, and other parameters set by the business. 

The accounts receivable automation sends late notice emails to clients along with a copy of the open invoice. AR teams can customize the message of these emails to encourage the client to take a specific action. The software is programmed by default to send the late notice at month-end. But users can configure the date at their convenience. 

The AR automation module initiates credit hold warnings and also issues credit hold flags in your ERP system. A two-way communication system also allows the ERP software to send credit hold flags to the AR automation software. This methodology enables businesses to improve their overall communication and versatility.

An organization can send emails through AR automation Software. If the initial notice and urage the client to take action, the cadence and style of the collection emails can be changed. All the replies from the customers are stored in the group mailbox dedicated to collecting and addressing AR issues.Â