Manual account receivable (AR) processes are still a significant issue for many businesses. There’s still a mentality among organizations that when it comes to processing payments, invoices and reconciling accounts, you need an actual human being doing it all. But that mentality is outdated and could put your company at risk. Manual AR processes are risky, and here are a few reasons why you should consider updating your AR department with automated tools and solutions.
Risk #1 – Lost revenue
Paper invoicing and manual payment tracking are slower and may be costing your business money. It’s easier to lose track of payments due to invoices or checks getting lost or damaged. If your company has many paper invoices, processing them can take up a significant amount of working time. According to a study from Wakefield Research, upper to mid-sized companies are losing $4.5 million each month because of poor invoicing practices. Automated invoicing tools, with built-in payment options and tracking, can help solve this problem.
Risk #2- Customer alienation
Today’s customers expect options when it comes to making payments. Adopting automated AR tools can make it easier to process your customer’s payments, allow them to view their order history, and help them stay connected to your business. Manual processes bog down this relationship and can be irritating and off-putting to customers. In a recent article from PYMNTS, Aaron Lehew, director of invoice-to-cash at Esker, said, “Automation helps organizations stay in front of customers, ensuring timely payments and addressing any issues that arise.”
Risk #3- Employee burnout
Manual AR processes are often repetitive and tedious, and those types of tasks can frustrate employees over time. Processing paper invoices and payments is also difficult to scale up as your business grows. You’ll need more employees, office supplies and time to stay on top. Integrating automated AR tools into your business is the best way to utilize your AR team’s talent and time. They can oversee these processes and step in when a customer or payment issue arises instead of performing manual, repetitive tasks that could lead to a payment processing error.
Let us help your AR department use automated tools
As an independent treasury strategist, I know how challenging it can be to change your organization’s AR processes. But sticking with a manual, slow, outdated system is risky, too. If you’re serious about investing in your organization’s growth, automated AR tools can be a significant asset. My team and I can help your organization overhaul your AR department and improve efficiencies. Schedule a consultation today! https://www.richmondfs.com/
