The Risk Of Not Having Automated Accounts Receivable
AUTOMATING ACCOUNTS RECEIVABLE FOR CPA
businesses can no longer afford to gloss over the importance of Automated Accounts Receivable (AA). As technology continues to advance at rapid pace, organizations must recognize the need to keep operations up to speed. Adopting an Order to Cash software solution is an essential step towards improving cash flow and boosting customer relationships.
CPA?s that fail to recognize the potential pitfalls of not using software to automate the accounts receivable process are leaving their organization wide open to risk. This can range from an inefficient process, manual errors and backlogging, to low employee morale. The following outlines few of the key issues when trying to remain competitive without an AA solution.
First of all, manual accounts process, whether it is processing of invoices, manual data entry, or manual reconciliation, are both time consuming and plagued with errors. Lack of automation results in painstakingly slow and tiresome process for staff. This notched-up workload can lead to overworked staff and consequently low morale.
Additionally, errors can occur in manual processes due to transcription errors or careless mistakes. These errors can lead to costly consequences, such as missing payment deadlines, and potentially damage customer relationships further down the line. Invalid invoices or incorrect payments can also discourage customers from making repeat purchases.
Technology provides solution to these issues by allowing businesses to utilize range of options such as robotics process automation (RPA), cloud-based ERP systems, AI-based accounts reconciliation, and integrated mobile payment acceptance. By adopting one of these solutions, the risk of manual entry and error can be dramatically reduced, while streamlining of processes multiplied.
Moreover, an automated accounts receivable system will help prioritize work, ease the transition from operator to customer, and provide greater visibility into short-term and long term plans. This also helps in making more informed and accurate decisions in terms of finances, as businesses can gain better visibility and control over their accounts receivable processes.
In conclusion, Automated Accounts Receivable should not be seen as an afterthought. Acknowledging the risks of not having an Investment to Cash software solution in place could provide huge payoff for CPA?s looking to increase productivity and efficiency. The end result being an improved bottom line and better customer relationships.
