3 ways to convince your company to automate its accounts receivable
Automating the accounts receivable processes within a company is becoming inevitable. Save time, money and energy: you know all the benefits of process automation for your work. But how can you convince your boss this step is also beneficial for his business?
Here are 3 reasons to support your approach and convince your superior!
1. Money comes in faster
For a business, getting paid on time is a major challenge. According to a survey conducted by Atradius, 4 out of 10 invoices issued by an American business will not be paid on time. This can upset your company’s cash flow!
Automating accounts receivable then is a good solution. For companies that have already taken this step, the rate of invoices paid on time is 38% higher than for businesses that still perform this process manually. These same companies are then able to process a greater number of invoices, allowing money to come in faster! If we compare, a company can process 4,500 invoices manually in a month, while an organization using automation can boost this number to 19,000 invoices a month! (Aberdeen)
Again, 42% of the organizations surveyed by AIIM mention the reduction of bill collection time as the major benefit of automation of accounts receivable processes. Companies using a digital system for their accounts receivable even report an impressive payback rate: 65% after 12 months and 78% after 18 months.
Why? Because digital billing allows employees to detect payment errors and delays directly. It is also easier to check the correspondence between the purchase order, the delivery slip and the invoice. This allows employees like you to process invoices faster, but also oppositions, which very often are the cause of late payments. By saving time on all these time-consuming and litigious processes, you will help the company bring in money faster!
2. Costs decrease considerably
Is your boss aware that 40% of paper invoices cost the company up to $25? Half of electronic invoices cost less than $2 to produce… Automating invoice printing will also let you combine print jobs and benefit from reductions for mailings, for example. If your company does a step further, digitizing invoices helps avoid manipulation errors: you and your colleagues will spend less time performing repetitive tasks, such as filing or scanning invoices, and will be able to focus on more important tasks.
Digitizing accounts receivable processes reduces printing costs and makes employees more profitable, while reducing errors. Many returns on investment for your business!
3. Procedures are optimized gradually
Changing work habits isn’t easy. Change must be accomplished little by little, accounting for the company’s financial capabilities.
But reassure your boss: to optimize the accounts receivable processes, the company can proceed step by step. It does not have to change its entire existing system or interrupt its activities. It must prioritize the departments that need improvement, while guiding them in the new procedures.
You already use an ERP? Don’t change it. Our solutions are compatible with all your systems already in place. The only thing to change is how you use them.
For more details on our service and support offers, don’t hesitate to contact one of our advisors!