Finance and banking are the areas in which we all tend to be extremely cautious. In fear of being cheated or robbed, we often choose banking services carefully and meticulously check all the payments and transactions that we make.
However, the world of online banking has changed a lot thanks to the digital revolution and the popularization of online tools. Of course, it doesn’t mean that everything can happen without any human action, but a lot of processes connected with payments are now automated and easier to complete.
One of these processes is the so-called Accounts Receivable Automation (AR Automation). What exactly is it, and how can it be used in the world of online transactions? We present a complete layman’s guide to AR Automation and its perks.
What is AR Automation?
AR automation is the modernization of the accounts receivable processes by using various IT tools. It is an excellent solution for companies that don’t want to take care of these transactions manually.
The process of AR automation covers steps like validation, conversion, and release of the outgoing or incoming orders or purchases in the company’s payment system.
In practice, AR automation involves four major steps: scanning and capturing data, analyzing it (accepting or rejecting), and finally, validating the accepted data and releasing it.
The four steps are essential and interconnected, so it is impossible to skip any of them. What’s more, the whole process is meant to be fully automated, so it’s unnecessary to take any steps manually.
Who Can Make Use of AR Automation?
AR Automation is a business tool that is useful for every company that wants to streamline its business and doesn’t want to deal with accounting issues on a daily basis.
It is also a good solution for companies that are not fully familiar with accounting issues or don’t want to make unnecessary mistakes during this process. AR automation for ERP decreases the amount of administrative work so that employees can focus on their other chores and responsibilities.
Some of the areas in which AR automation will be particularly useful include managing customer accounts, broadening the range of available online payment options, and taking care of credit requests – if the company offers them. To read more about the services available in AR automation, click here.
The Benefits of AR Automation
We have already emphasized that AR Automation is a beneficial tool for companies that want to save time and workforce by minimizing administrative work connected with managing accounts and customer requests connected with the payment process. What are the other benefits of this innovative service?
AR Automation can lead to the company’s rapid and smooth development, as it accelerates the processes connected with payments. The service is almost on-demand, so the payments always arrive on time – it makes the cashflow smooth and secure.
Another benefit of AR Automation concerns reduced labour costs – as the system is fully automatic, no workers are needed to service it daily. The workforce can, therefore, be reduced or redirected to other more important tasks. The company can save both time and money.
Finally, AR Automation leads to significant customer service improvement – customers are satisfied with the pace and quality of the service, so they’re more likely to remain loyal to a particular company. From a broader perspective, it guarantees increased income and more devoted customers.
How To Introduce AR Automation To A Company
Once you understand the AR Automation process, it’s time to put the knowledge into practice and think of introducing this solution to your company’s accounting team. What are the essential steps to take?
Initially, it is necessary to introduce AR Automation rules to the accounting team and all other persons who the new strategy concerns. It can be done by conducting various workshops and training sessions.
The next step is to clarify the goals of AR Automation within the company – for instance, increased income, a wider range of offered payment services, or a bigger group of loyal customers.
Finally, it’s essential to re-think the accounting system structure and set new goals and responsibilities to the accounting team. Remember that, like every strategy, AR Automation needs constant evaluation and supervision.
AR Automation is a great accelerator for finance and accounting services, and it can be a revolutionary change in the world of accounting. Once you understand how it works and what goals it involves, it will be easy to introduce AR Automation to your company.
Simply keep in mind some basic rules, dedicate yourself and your coworkers to evaluating and supervising the new system, and you’ll soon notice the first benefits of it!