Making Smart Choices For Automated Accounts Receivable Collections
AUTOMATION SMARTER ACCOUNTS RECEIVABLE COLLECTIONS SOFTWARE
When it comes to streamlining the order to cash process, automation has become the focus of many leaders in the finance space. As executive-level executives seek to ensure robust cash flows, the automation of accounts receivable collections processes is one of the best ways to ensure prompt payment of invoices and an effective order to cash cycle.
Finding the right accounts receivable collections software to deploy for streamlined automation is relatively straightforward endeavor. As long as the solution employed offers an extensive suite of features, an executive-level finance professional can be assured of maximum value from their automation efforts. Consequently, comprehensive understanding of the functionality of the cloud-based accounts receivable collections software available should inform the choice of any such executive.
Implementation
Firstly, when investing in automation for accounts receivable collections, it is important to establish secure connection between the accounting software and the collection software, to ensure smooth communication between the two systems. This connection should generally be achieved via an API, and any robust collection system should offer secure and easily integrated solution. This will then enable ongoing synchronization of all the necessary data, such as customer profiles, invoices and payments.
Once the connection is established, wide variety of functions can be automated. For example, the collections platform can be configured to automatically send invoices to customers and manage payment reminders. This automated communication can be tailored to customer?s preferences and their payment terms.
Reporting
Another vital consideration for any executive seeking to streamline accounts receivable collections processes is to understand how the automation will generate in-depth reports which track the status of receivables. This is where the quality and capability of the reporting of the respective system comes into play.
Any cloud-based accounts receivable collections software should provide advanced reporting which can be easily customized via the respective platform. Advanced filtering and sorting should be used to generate information that is relevant to the business. Understanding cash flow trends, identifying collections bottlenecks and troubleshooting payment delays should all be functions that are easily achievable via advanced reporting.
Data Security
When considering the purchase of accounts receivable collections software, it is essential to investigate the data security measures employed by the systems. All data collected and stored must be fully encrypted and secure, to ensure the protection of sensitive customer data and financial information. As general rule, cloud-based solutions which utilize sophisticated encryption protocols and multi-factor authentication ranks highly in terms of overall security.
Conclusion
Any executive-level finance professional wishing to maximize the efficiency of their accounts receivable collections processes by engaging automation should seek cloud-based solution which offers the following features and functions: secure connections and synchronizing capability between the collection system and the existing accounting and billing software; advanced automation of the collections process, including tailored communication and payment reminders; robust reporting; and sophisticated data security measures. With such suite of features and capabilities, an executive-level finance professional can be confident of successful foray into the automation of accounts receivable collections.
