The Price Tag Of Missing Out On Accounts Receivable Automation
AR AUTOMATION SOLUTION ANNUAL PRICE
When it comes to accounts receivable (AR) automation solutions, the potential financial risks of neglecting to make use of these can be substantial. For many organizations, AR processes are labor-intensive and largely manual, requiring considerable manual effort to complete orders to cash. Manual processes inherently come with an increased risk of errors, delays, and unwanted inaccuracies.
Without comprehensive approach to automating the accounts receivable process, organizations can be left in precarious position. For one, greater manual effort means greater costs, in the form of labor costs, lost time, and the sheer dedication of resources. But the costs go well beyond that: the longer customers are left waiting for payments to be processed and completed, the less likely they will be to choose your products and services in the future. As result, organizations are more likely to lose out on vital revenue opportunities.
What?s more, organizations forgoing accounts receivable automation also face greater risk of substantial losses on manual errors and inaccurate information. In fact, as much as two percent of companies annual revenue can be lost under manual processes, either through errors or discrepancy between what was requested and what was sent out. This can cause long-term challenges in terms of customer satisfaction, ultimately forcing an organization to invest even greater resources to mitigate those risks.
Of course, there is also the inherent security risk of manual AR processes: the potential for fraud or data misuse presents whole new level of risk. Especially in the age of GDPR, where organizations are legally obligated to protect personal data or else face steep penalties, manual processes may be leaving organizations open to vast potential damage.
All of this is to say that when it comes to considering an automated approach to accounts receivable, the cost of not implementing it is itself incredibly high. The levels of risks and losses, along with the associated costs, can be easily weighed against the the cost of implementing an AR automation solution. In that sense, the financial savings from successful implementation of software solution can be well worth the investment.
