Have you recently heard about the idea of automating your accounts receivable? If yes, then that must have started sounding like a good idea, especially since you are so very much aware of the complexities that come with this process, and of the amount of time you are spending managing those accounts manually. Not to mention that you are aware of the risk of making mistakes as well, and you know that those could cost you a lot of nerves, time, and money.

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Of course, while the idea of automating these processes certainly does sound nice in theory, you don’t want to do it until you understand what it actually means in practice. Or, perhaps you’re not even sure what it means in theory either. In any case, the point is that you have some important questions on your mind right now.

For starters, you want to know what AR automation actually is and how it really works. Then, you want to get a better idea about whether you should do it for your business or not. And finally, if you decide to go for it, you want to know how to do it the right way. Those are, without a doubt, all some important questions right there, and what we are going to do is answer them for you right now, hoping to help you find out what you need to know before making any final decisions and any concrete steps towards doing this.

What Is Accounts Receivable Automation?

We are, unsurprisingly, going to begin with the question of what accounts receivable automation actually is. To cut right to the chase, it actually consists of using certain software solutions that are aimed at automating those tasks that fall under the category of managing the processes of billing your customers, tracking those payments, as well as following up on invoices. Businesses have been relying heavily on spreadsheets, paper invoices, and manual data entry, and the automation process is here to change that.

So, what does this particular idea allow you to do, and what does it bring to the table, so to speak? If you take a look at the Billtrust Accounts Receivable Automation explanation, you’ll realize that you can actually automate quite a lot of tasks if you decide to go for a good software solution. For starters, you can start automatically generating and sending invoices, which will save you a lot of time, and avoid some invoices not being sent due to forgetting, for example. Then, you can also easily track all the outstanding payments in real time.

Furthermore, with a great program, you can send automated reminders, so as to ensure that the invoices are paid on time, which is good both for you and for the customers. In addition to that, reconciling those received payments with the invoices becomes much easier and faster, and there is also the fact that you can more easily generate reports and analytics to check the AR performance. Another thing that both you and your customers will love is the idea of providing them with an option to make payments through online portals, as that also makes things easier and quicker for everyone involved.

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Should You Do It?

Now, here’s the next question. Should you actually do this? You know how it works, you know what it entails, but you may not be sure about whether it is the right move for you. Well, the short answer is yes – it most definitely is the right move for all businesses out there.

Why, though? Well, for one thing, it helps you improve your cash flow, as well as reduce human error. For another, you will see an increase in productivity, as you will free up your resources by automating these particular processes. And then, the customer experience will also improve. Not to mention that you will get to scale your business without having to onboard additional employees. Click this to understand how to manage your finances in general.

How to Do It?

Moving on to the final question of the day. If you’ve decided to give AR automation a chance, what you want to learn next is how to actually do it the right way. And, well, you should start by evaluating your current AR management process, and then defining your particular goals, so as to understand which particular tasks you want to automate.

Once you’ve identified your needs, you’ll have to proceed towards the main task, which basically consists of finding the right AR automation tool. You should be careful here, and cross-reference what the tool brings to the table with those specific needs you’ve defined previously. Furthermore, make sure to always research the provider in details as well, so as to get the software solution from a reliable source. And, naturally, don’t forget to check the fees and compare them, as that will impact your decision as well.