If the ongoing pandemic has taught business owners anything, it is the need for their businesses to be flexible. With the recently mandated stay-at-home orders, businesses that rely on paper based accounts receivable departments are at a disadvantage when compared to electronic based businesses.
As many businesses have had to physically close for safety reasons, the businesses that can operate remotely have shown a greater resilience to economic pressures. When compared to paper based A/R businesses departments, those using innovations such as invoicing automation and integrated payments, to name a few, are more durable during unpredictable scenarios. These innovations provide powerful features which result in benefits that allow businesses to stay afloat during tough times.
Managing Accounts Receivable Remotely During Covid 19 and After
Many businesses still operate in a way that requires using paper mail, with businesses sending and receiving invoices and checks through the postal system. With up to 90% of businesses relying on manual invoicing methods, you can imagine that many still pay with checks. This system has proven to be inefficient in current times, as businesses need faster access to their cash.
The drawback occurs when businesses receive payment through physical checks and are not able to regularly access their physical office locations in order to receive the payment. The same goes for businesses that send invoices through paper mail – with their customers currently not at their business locations and unable to receive the invoice.
The paper based A/R workflow is mainly designed to operate from a central work hub, where if operations suddenly become remote, resources are mainly located at the office. Most paper based A/R departments don’t have the resources in their personal homes to function the same, cutting efficiency. The inability to process these payments efficiently holds up cash flow, negatively affecting not only the accounting team, but the business overall.
Tough economic times require businesses to maintain positive cash flow in order to keep the organization operating properly.
Savvy business owners are rapidly moving away from manual processing due to the advantages provided by electronic payment systems. Electronic payment processing allows businesses to pay and get paid with one click from anywhere, at any time, reducing costs, while increasing efficiency.
The Benefits of Automating Your Accounts Receivable Department
The ability to continue functioning the same way, from anywhere, has its advantages. According to a recent study, two-thirds of managers who offer a remote work option report that employees working from home are more productive overall. One study estimated that by 2028, 73% of all departments will have remote workers.
Automating certain functions of your company such as the accounts receivables processes optimizes your workflow and allows you to collect on invoices automatically. In other words, you save time by not having to directly send those invoices or communications since your automation software carries out those tasks.
Save Time and Money With Biller Genie
If you’re a business owner and would like to optimize your account receivables and reduce your outstanding balances, Biller Genie can help. Our automation and e-invoicing solution reduces your outstanding balances by up to 40% while getting you paid faster. Click the link below to learn more.