The finance team is often pressed for time when handling the financial closing of a company. Manual processes often result in mistakes, lost documents, and compliance breaches. Furthermore, there has been a misconception that automating accounts receivable will cost the accounts receivable team their jobs. The accounts receivable departments across the globe have a major challenge, which is time. Automating the entire AR process can address the challenges and also improve the efficiency of finance departments. When automated AR is incorporated, it saves time and facilitates streamlined business workflow strategies. Transferring from manual to automated AR involves a well-planned holistic approach to payment processing.
Consulting With Stakeholders
The first step involves talking to everyone involved in the existing receivables process. When the accurate working mechanism is studied, the transition from a manual to an automated process can be smooth. This is more so because accounts receivable software can be tailored to the needs and demands of the company. Moreover, it is also recommended to discuss the matter with regular clients and gather as much input as possible. Once the automation process begins, it is a wise decision to seek the feedback of shareholders regarding the implementation of automated AR.
Motive or Goal Behind the Automation
Individuals fear losing their jobs because of Artificial Intelligence and AR automation. Instead of having phobias and confusion, it is highly recommended to state the motive or objective behind the transition from the manual process to AR automation. Several businesses in the USA favor the transition to long-term goals. Implementing automated AR helps businesses grow their customer base. In addition, automation also creates new job roles for employees so that more strategic business tasks can be managed.
Integrating Software and Automating Payment Reminders
Once an automated AR solution has been selected, the next step involves integrating the accounting software. This is important because integrating accounting software helps align and organize present accounts receivable data with the new system. The pivotal objective of AR automation is payment collection. Setting up an automatic payment reminder is important, as it saves time for the accounts receivable team. Additionally, one can set up a schedule for payment reminders.
Choose and Connect Payment Options
Contrary to traditional times, there are multiple ways to pay a bill today. Hence, one can determine a specific payment platform and a method by which the company accepts the payment. It is suggested that the business must make the right choices and thereby incorporate the different options with the automated accounts receivable software. This is an important step to seamlessly implement AR automation.
Reconciling and Reporting
Automated accounts receivable software facilitates regular reconciliation. Thus, clients don’t get confused or annoyed with unwanted payment reminders, even after they have already paid. The reconciling procedure can be utilized as a reference for analyzing the way the AR automation is functioning. Reconciling and reporting help to make all the necessary adjustments and changes.
Choosing the right automated AR solution must fit the business’s needs and demands. The above-mentioned are the important steps that help in the smooth transition from a manual AR process to an automated accounts receivable process.