Automation holds a dazzling array of benefits for accounts receivable (AR) teams. A key one, cost savings, often gets lost in the hype, but AR departments can see tangible cost savings action if they embrace automation.
In a survey of midsized firms published in late 2023, more than 90% of companies were convinced that automating AR processes will lead to more streamlining and efficiency. What’s more, nearly half of these firms (44%) anticipated either greater savings or increased cash flow from automation.
For AR teams that want to jump on these cost savings, Billtrust’s chief product officer Corrie DeCamp offers three ways to realize accounts receivable automation benefits.
1. Automate for AR staff efficiency
When it comes to benefits to the bottom line, the low-hanging fruit are tasks that can be automated without requiring much human judgment, says DeCamp.
In fact, companies can find some of the best automation and cost-saving opportunities at their help desk. Instead of hiring employees to answer mundane questions about customer accounts, an AI tool can quickly send a link to the proper statement on a company’s portal. In this way, says DeCamp, automation can dramatically speed response times while freeing up employees to focus on more complicated and higher-value inquiries.
Automation can also help employees prioritize their own workflow so that they can tackle whatever most seriously affects the bottom line first. Here, DeCamp says, “you want to make sure [an AR specialist] is working on things with the highest risk and the highest dollar amounts before leaving at the end of a shift.”
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2. Reduce DSO with automation
For many AR teams, reducing days sales outstanding is the holy grail. “Companies working through the Billtrust system see trends from our system and from other payments systems, as well,” explains DeCamp.
For instance, if a given customer across multiple payments systems repeatedly responds to text messages rather than emails or phone calls, then an AR professional knows to approach that customer via text to get paid quickly.
She continues: “You want to target those at the greatest risk of nonpayment through the right channel and with the right message. The more complete set of data we have, the more accurate we can be in making those assessments.”
3. Move past fragmented data in finance
Too often, siloed systems have deprived CFOs and other finance leaders of real-time insights. In the past, explains DeCamp, even Billtrust customers who distributed invoices through the company’s array of tools didn’t collect every last payment over this system, given that some payments may come through a bank or may even be hand-delivered to an office.
Billtrust is currently devising ways to access historically fragmented information, so companies can use dashboards and customizable tools to tap into more comprehensive data and deliver better, more accurate insights to decision-makers.
FAQ
AR process automation reduces the need for manual intervention in routine tasks, such as answering customer inquiries and prioritizing workflows. This efficiency frees up staff to focus on higher-value activities, leading to significant cost savings.
Automation helps reduce DSO by streamlining communication with customers and ensuring timely follow-ups through preferred channels. This targeted approach improves payment collection efficiency and accelerates cash flow.
Automation integrates various data sources into a unified platform, providing real-time insights and comprehensive data visibility. This eliminates the inefficiencies caused by siloed systems and enhances decision-making for finance leaders.
AI tools can automate responses to common customer inquiries, prioritize tasks based on risk and value, and provide actionable insights through data analysis. These capabilities improve overall AR efficiency and effectiveness.
Businesses can start by identifying low-hanging fruit—tasks that require minimal human judgment—and gradually expand automation to more complex processes. Leveraging preconfigured templates and customizable tools can also facilitate a smooth transition to automated AR processes.