Many businesses struggle with their Accounts Receivable (AR) process and excessively high DSO. Some industries, like energy and automotive equipment, have average accounts receivable periods of 100+ days. Whether you’re a small business, start-up, or industry leader, high DSO can upend your financial security and cost you valuable time and resources in chasing down delinquencies.
Automating accounts receivable can be transformative for your business processes and address many of the challenges mentioned above. The accounts receivable automation industry is booming and is expected to be a $3 billion market by 2024. More organizations every month are making the decision to rely on accounts receivable software as opposed to highly time-consuming manual workflows. In short, overwhelming evidence suggests that an automated accounts receivable solution like CreditPoint can streamline processes and grow your business by saving time, increasing efficiency, and improving your bottom line.
Increasing Analyst Bandwidth
Automating accounts receivable will save you time, and that time has never been more valuable than it is now, especially given recent hikes in the cost of doing business, from inflation to rising wages and an increase in interest rates. By automating collection workflows, customer correspondence, and risk monitoring, you and your employees can let the technology handle the time-intensive work and focus instead on new projects or mission-critical tasks.
In today’s technology-oriented world, growing businesses should look to automate as many tasks as possible in order to allow salaried employees to spend more time on critical projects. It’s time to finally eliminate the tedious, manual work associated with managing spreadsheet reports, reconciling data across disparate systems, following up on outstanding payments, and more.
Automation allows you to speed up your accounts receivable process without sacrificing due diligence or customer experience. According to a PYMNTS survey, 87% of teams automating accounts receivable are processing faster and 79% report improved overall efficiency. In other words, automated workflows allow your analysts to accelerate the collections management process and streamline dispute resolution.
The same study found that automating results in a “superior customer experience.” Best-in-class software allows you to create systematic workflows to remind customers of upcoming payments in order to streamline customer collaboration. Solutions such as CreditPoint also provide you with the data visibility you need to prioritize high-risk and past-due customers, so you can focus your labor on the customers and cases that will have the largest impact on your business.
Reduce DSO and Bad Debt
Businesses need to optimize their accounts receivable processes to ensure they’re actually collecting the money they’ve earned. The higher your DSO, the more you risk losing revenue as bad debt. There are many accounts receivable departments that still use spreadsheets to manage their accounts, and these manual processes often lead to delayed collections. These delayed cash flows and increases in DSO then force the company to take out loans and build up their debt load.
Every business wants to save time on collections and get paid faster, and CreditPoint’s accounts receivable automation can make that happen. Our software increases the efficiency and productivity of your entire collections team and gives you the ability to create and configure as many collections and dispute strategies as you need to fulfill your business goals.
At CreditPoint, our mission is to provide a comprehensive software solution to meet your businesses’ unique accounts receivable and credit risk needs. If you’re missing out on the benefits of automation, schedule a consultation with CreditPoint Software to learn how you can leverage the efficiency and cash flow benefits of an optimized accounts receivable software solution.