Eliminating Manual Errors and Delays Using Accounts Receivable Automation
It's common for businesses like yours to encounter manual errors and delays in managing their accounts receivables, which they believe to be inevitable. By requiring employees to perform manual tasks, they spend more time on basic tasks and less time on adding value to the organization. This reduces productivity automatically. Yes, manual accounts receivable processes are prone to mistakes and delays, which may be detrimental to a company's bottom line. But who says it's unavoidable? It can be avoided and prevented from occurring. Let's take a look at how. Some common errors and delays in the Accounts Receivable Process 1. Manual Data entry: The traditional accounts receivable process, which is done using spreadsheets, is always comfortable for most individuals. Manual data entry is prone to errors and delays, which may be both time and money-consuming. Poor cash flow maintenance. Poor record maintenance and management. Follow-ups were delayed and irregular. You may think that these are standard errors that all organizations make while manually processing and monitoring accounts receivable. Yes, however, most people are unwilling to modify their accounts receivable process to boost cash flow and productivity. For example; If a business owner submits a wrong invoice or payment amount by accident, they may not recognize the error until it is too late. 2. Misplaced or lost invoices: An invoice is a sort of bill that is given to the customer asking for payment for services or products provided on credit. A decent invoice should be formal, professional, and, most importantly, in a suitable tone. Not Sending Your Invoice Instantly. Fail to provide a payment deadline. The invoice was delivered to the wrong person. Services are not listed. Your invoice is lacking in politeness. Terms are not being stated. There was no follow-up. These are some of the common mistakes and errors that wreak havoc on invoices and the responses they trigger. Invoices are widely ignored or misplaced when handled manually. This may result in payment delays since the business owner may be unable to locate the invoice when it is needed. 3. Inaccurate record-keeping: Keeping track of your customers and payments manually may be time-consuming and error-prone. This can result in erroneous records that are difficult to update and may even lead to customer disputes. Inaccurate record-keeping is the practice of failing to maintain the records properly. This can be purposeful or accidental, and the consequences for individuals, organizations and even nations can be severe. lack of training, lack of attention to detail, lack of correct protocols These are all major causes of faulty record-keeping. Incomplete or erroneous records can lead to lost or wrong information, misunderstandings, and a lack of responsibility. To prevent these issues and guarantee that their records are dependable and trustworthy, you must prioritize proper record-keeping. 4. Lack of visibility: Accounts receivable visibility refers to a scenario in which an organization does not have a clear or complete view of the money owed to them by their customers. This can be caused by a variety of circumstances such as including insufficient record-keeping, poor customer communication, lack of appropriate systems and processes for tracking and managing accounts receivable. a lack of visibility over your accounts receivable can make it difficult to manage your cash flow, plan for the future, ensure that you get paid on time. It can also lead to misunderstandings and disagreements with your customers, as well as financial losses for your organization. 5. Slow payment processing: Slow payment processing in accounts receivable entails a situation in which a business or organization takes a substantial amount of time to handle payments owing to them by their customers. This can occur for several reasons, including a lack of effective systems and processes for managing accounts receivable, insufficient employees or resources, a significant volume of payments that must be handled. slow payment processing can be a big concern for your business, causing cash flow problems, challenges controlling and projecting income, even disagreements and lost customers. To minimize sluggish payment processing, make sure you have adequate systems and processes in place for handling your accounts receivable, as well as enough employees and resources to manage the number of payments you receive. How to eliminate Manual Errors and Delays? An accounts receivable automation software can help you eliminate manual errors and delays in your accounts receivable process. Many of the tasks associated with managing your accounts receivable, such as issuing invoices, monitoring payments, reconciling accounts, are automated by this software. The software can help reduce the probability of errors and improve the accuracy and efficiency of the accounts receivable process by automating these tasks. Implementing data validation checks is one method that accounts receivable automation software can help avoid manual errors. These checks can help to ensure that the information being entered into the system is proper and full, lowering the possibility of mistakes like transposed digits or wrong customer information. Additionally, accounts receivable management software can help eliminate manual delays by automating tasks such as invoice generation and payment tracking. This can speed up the accounts receivable process and reduce the time it takes to process payments, leading to faster turnaround times and improved customer satisfaction. Overall, using accounts receivable software can help you in improving the accuracy and efficiency of your accounts receivable process, reduce the risk of errors and delays, and improve your financial health. Maxyfi – Accounts Receivable Software With Maxyfi - an Accounts Receivable Automation Software, you can enhance and empower your business through efficient collections, powerful workflows, and customizable templates. The following are some of the benefits that you’ll get from Maxyfi. 1. Accounts Receivable Process with Prioritized List In the accounts receivable process, a prioritized list is a rating of outstanding invoices based on the urgency and necessity of their payment. This list assists in prioritizing which invoices should be paid first, such as those with upcoming due dates or the highest outstanding amounts. This guarantees that the company maintains a healthy cash flow and avoids any concerns with late payments or defaults on existing obligations. Maxyfi Accounts Receivable Management Software with the help of underlying power full AI engine with workflows, creates the prioritized list for actions in a flash, saving hours of manual activity and increasing productivity! 2. Accounts Receivable Automated Reminders Accounts receivable automated reminders are a system that sends invoice reminders to customers regularly to remind them to settle their outstanding debts. This can assist organizations in more efficiently managing their accounts receivable process by ensuring that invoices are paid on time and reducing the number of outstanding bills. Automated reminders may be delivered through email or SMS and can contain the amount owed, the invoice number, and other relevant information. This can assist to enhance the business's connection with its customers by demonstrating that the business is proactive in managing its accounts receivable and is committed to maintaining a positive working relationship. Maxyfi provides an infinite number of pre-defined templates to meet workflow requirements, as well as customization capabilities and automatic reminders to improve efficiency. You can also make one from scratch! 3. Accounts Receivable Workflow Management Workflow management in accounts receivable is the act of monitoring and coordinating the flow of work associated with handling incoming payments for an organization. Invoicing customers, following up on delinquent payments, applying payments to accounts, reconciling accounts to verify that all payments are accounted for and correctly documented are examples of such activities. Workflow management in accounts receivable aids in the seamless and effective operation of the accounts receivable process, as well as the timely receipt of payments. Powerful workflows that help your organization in tracking high-priority prospects and personalizing follow-up communications to slow or non-paying customers. Overall, it ensures that your company recovers all outstanding debts. 4. Accounts Receivable Dispute Management Accounts receivable dispute management is the process of resolving disputes that emerge when a customer or client questions the authenticity of an invoice. This procedure normally entails analyzing the disputed invoice and accompanying documents, collaborating with the client to settle the dispute, and making any required account modifications. The purpose of dispute resolution is to handle problems promptly and effectively while preserving strong customer relationships. Handles disputes efficiently without losing on unrecoverable debts. Also helps boost effective conversations and good customer experience. 5. Promise to Pay Requests in Accounts Receivable Automation Software Accounts receivable dispute management is the process of resolving disputes that arise when a customer questions the validity of an invoice. This procedure normally entails analyzing the disputed invoice and accompanying documents, collaborating with the customer to settle the dispute, and making any required account modifications. The purpose of dispute resolution is to handle problems promptly and effectively while preserving strong customer relationships. A payment plan or payment agreement, which defines the terms and circumstances of the payment, including the amount to be paid, the due date, and any penalties for late payment, is often used to document the promise to pay. To ensure a healthy cash flow and financial stability, businesses must carefully manage their accounts receivable and follow up on any outstanding debts or commitments to pay. A promise is one of the most common approaches to collecting payment dues where the customer is made to agree to pay by the date and systematically follow up to ensure they pay. Maxyfi Accounts Receivable Software has the best promise tracking and integrated follow-up communication mechanism. 6. Call Back Request in Accounts Receivable Automation Software A callback request is when a customer requests to be contacted about their outstanding balance or payment at a later time in the accounts receivable process. This might be because they require more time to gather the necessary finances, or they may like to discuss a payment plan or other solution. When your customer is unable to make a payment or resolve an outstanding amount on the initial call with your organization’s accounts receivable management system, they often request a callback. Well, Maxyfi offers a Call Back option in its customer portal for customers to reach out easily and discuss their payment plan later. 7. Outbound Email & SMS in Accounts Receivable Management Software Outbound email and SMS in accounts receivable refers to the practice of sending emails and text messages to customers to remind them of outstanding payments or to convey account information. Payment due dates, payment reminders, account changes, other account-related information maybe included in these messages. Outbound email and SMS can help you manage your accounts receivable process and keep your customers up to date on their invoices. Maxyfi allows you to configure your business email as well as your SMS gateway credentials, which determine where the email/SMS is delivered from your business account. 8. Customer 360 View In accounts receivable, a customer 360 view refers to a full, holistic perspective of a customer's financial data, including outstanding invoices, payment history, and creditworthiness. This sort of perspective is critical in the accounts receivable process because it enables organizations to better manage outstanding invoices and make accurate credit and collection choices. You may gain a detailed picture of your customer's financial status with a customer 360 view and use that information to streamline your accounts receivable process and increase your overall cash flow. This shows a thorough summary of your customer's invoices, due and late payments, workflow action schedule, contact information, and so forth. This allows your company to track and monitor each customer and collect pending payments on time. 9. Real-Time Analytics and Dashboard A tool that gives an up-to-date picture of your accounts receivable process is real-time analytics and a dashboard in the accounts receivable process. It lets you analyze and monitor your accounts receivable performance in real-time, giving you insights into customer payment trends, delinquent invoices, and other crucial metrics. The dashboard also displays data visually, allowing you to rapidly discover areas for improvement and take action. Maxyfi AR CRM provides a powerful and sophisticated dashboard that provides an informative view of Overdue Summary, Aging Summary, DSO, Needs Action, Top Debtors, Customer Segmented view of the phases of collection, they are in. Final thoughts: Maxyfi Accounts Receivable Automation Software You may now understand how to easily eliminate manual errors and delays while increasing and expanding your company's cash flow and productivity. If anything is still holding you back, give it a free trial. You can easily learn the magic of accounts receivable automation by reading the Maxyfi blogs.