How To Improve Efficiency Within Your Accounts Receivable Department

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Organisations today are always trying to think of new ways to improve their business processes and systems. The advent of new technology, such as document management solutions, provides businesses with the tools to streamline their business process, reduce costs and improve productivity and efficiency across the whole organisation. In a recent AIIM survey, titled Process Revolution: Moving your Business from Paper to PC to Tablets, they found that despite the acknowledged benefits, a third of small and mid-sized companies and 22% of the largest have yet to adopt any paper-free processes. Considering the amount of technology available, it is crazy to think that there are still businesses that have yet to adopt any form of document automation.

Reducing the amount of paper that flows through your business can help to improve   finance   departments  such as Accounts Receivable (AR). The AR department is essential to any business as they typically generate and send invoices to customers, who in turn have to pay within a certain timeframe. A traditional, manual AR process is considered very inefficient and costly, but by implementing an automated solution, such as an Account Receivable Solution, businesses can streamline the process enabling the AR department to improve cash flows, reduce operating costs and improve customer service levels.

In a recent survey conducted by OB10 and The Institute of Financial Operations, titled Accounts Receivable Survey 2012, they found that 85% of accounts receivable and credit respondents believe that electronic invoicing expedites the collections process. This statistic shows that investing in an automation solution will help to improve the business process, allowing AR staff to effectively automate invoice production and management.

Other key benefits for automating your Accounts Receivable department include:

  • Accelerate customer payments: All documentation is instantly accessible, enabling rapid responses to any customer queries
  • Streamline invoice chasing: Monitoring and automatic alerts make it easier and faster to chase payment of invoices
  • Pre-empt customer disputes:The ability to send all accompanying documentation to the customer, such as a proof of delivery note often eliminates disputes
  • Remove re-keying of order information: The ability for the salespeople to raise an eForm to kick off the billing process means the process can start earlier and removes the need for the information to be re-keyed
  • Improved response to management queries: Seamless integration with your ERP solutions provides an invaluable tool to investigate postings in detail by “drilling down” from transaction listings to see all originating documents instantly
  • Eliminate invoice filing and microfiche cost: With documents being captured directly from your ERP solution, the need to file or print and scan documents is removed
  • Reduced storage costs and release office space: Electronic document storage eliminates the expensive requirement for hard copy storage

All the above benefits will allow the AR department to become more efficient and improve customer relationships, this will not only benefit AR but the organisation as a whole.

Source by Caroline Wigley

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