The Risk Of Disregarding Invoice Automation
AR INVOICE AUTOMATION
Dismissing the need for automation of the order to cash process can have serious repercussions for organizations. Of particular notable concern is the lack of attention afforded towards accounts receivable (AR) invoice automation. Although it may appear on the surface to generate minimal expected returns, the potential risk of overlooking the transformative potential of what may be termed “AR invoice automation” can be dangerously underestimated.
Organizations may claim not to require aid in the accounts receivable invoicing process if they are equipped with relatively small-scale order to cash system and have competent personnel to man the tasks. Additionally, some perceive the cost of implementing and maintaining such system being too high for the knowledge or resources available. Such negative misconceptions should be actively challenged.
From the C-Suite perspective, embracing AR invoice automation has the potential to reduce costs and introduce an unrivaled level of visibility, accuracy, and security. Initially, the cost savings afforded by the removal of manual labor involved in the accounts receivable processing will be considerable. The soft expenses such as human error that can lead to late payments and disputed charges, or collection calls that are tenuous yet nevertheless draining on personnel resources, could also be drastically reduced.
Furthermore, leveraging the opportunities available with rich set of data that results from the implementation of an automated process is undisputedly beneficial. Being more predictive of potential future issues and having more effective insights into operational performance, as well as customer experience, is guaranteed to improve efficacy of decision-making at the highest level.
The aforementioned, however, just scratches the surface. By introducing secure process that verifies identities, it becomes possible to reduce fraud, strengthen customer relations and streamline end-to-end efficiency. As the entire process is standardized, the volume of correspondence is greatly reduced as well.
In consideration of the many advantages AR invoice automation brings to the table, in terms of cost savings and analytic insights, the long-term prospects of disregarding the opportunity should alarm any finance executive.
