5 Obstacles to Optimizing Your Accounts Receivable Processes
According to the Institute of Financial Operations, more than 70% of companies send between 7,000 and 10,000 invoices a month. So it’s obvious that organizations are paying a heavy toll to deal with all these invoices.
However, like everyone else, you’re no doubt trying to:
- cut invoice production costs
- ensure better customer service follow-up
- reduce the average time it takes for customers to pay
So why aren’t you able to optimize your accounts receivable processes?
Here are five obstacles that are most likely preventing you from meeting your goals in terms of productivity, business efficiency and customer experience.
1 Even more paper being used
Fifty-four percent of organizations aren’t yet sending electronic bills. Many people still love traditional mail. Customers continue to ask to receive paper bills. Employees prefer printing copies to manage customer records. Sometimes you simply don’t have your customers’ email addresses. Old habits die hard and the digital revolution is often a hard-to-implement concept.
2 Key data is still being entered manually
The data used in your accounts receivable processes frequently comes from a number of systems (ERP, ECM, CRM, etc.), installed at different times and using different, frequently incompatible, languages and standards. Some liaison is done manually as these systems cannot be connected and made to communicate with each other automatically. Every day, employees have to manually re-enter new data, which generates errors. Did you know that 49% of businesses don’t get paid on time because the initial order number on the invoice is missing (according to the Institute of Financial Operations)?
3 Lack of flexibility in creating transactional documents
InfoTrends estimates that, for most organizations, it takes as long as seven months to change a template! The inflexibility of many management systems complicates and slows down the document updating processes. Accordingly, changes and mailings are frequently managed manually, with all the risks of errors and non-compliance imaginable.
4 No linkage between corporate systems
According to Aberdeen, 43% of organizations reported that the missing data in various files remains their greatest issue. The data comes from a number of systems that don’t communicate with each other. When Customer Service wants to answer a question, precious time is lost bringing together information spread over a number of systems, in different formats, and often on paper.
5 Changes expensive to make
Developing a system more suited to your circumstances or changing your existing systems would take a long time. It could lead to exorbitant costs and involve a number of departments in your organization. What’s more, it could take several years before it’s up and running. In other words, many challenges would have to be overcome!
Did you know that there are simpler ways to overhaul your accounts receivable processes at your own pace?
Contact us to find out how you can improve your accounts receivable processes with an easy-to-implement solution.