Best Accounts Receivable Automation Solutions

Every CFO knows the importance of having the most effective accounts receivable management possible. Leveraging the power of accounts receivable automation tools is an excellent way to simplify and systemize this most critical aspect of business accounting. 

Keep reading for a breakdown on why accounts receivable automation solutions may be the ultimate upgrade to your business operations.

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What is Account Receivable Automation?

How to Automate Accounts Receivables Process?

How Does Account Receivables Automation Work?

What Are the Benefits of Accounts Receivable Automation Solutions?

What Are the Challenges of Account Receivables Automation?

Which Accounts Receivables Processes can be Automated?

What are Features of Account Receivable Automation Solutions?

How to Implement Account Receivable Automation Solutions

Is Accounts Receivable Automation Software Right for You?

What is Account Receivable Automation?

Account receivable automation is the act of using computer software to automate key aspects of the accounts receivables process. For years, this process was done via spreadsheets and manual entry. 

Both processes are time consuming and prone to human error. Realistically, the probability of errors and miscalculations increases with the size of the business and its operations. 

However, account receivable automation can eliminate much of the human element from this process while also increasing speed. When properly applied, an accounts receivable automation plan can handle everything from sending out invoices to processing payments. 

This reduces the time accounting staff spend on tedious tasks, which affords them more freedom to strategize on how to improve other areas of the company’s operations.

How to Automate Accounts Receivables Process?

Although account receivable automation solutions can be a tremendous benefit to any organization, great care needs to be taken whenever you are adopting such a drastic change as going from a manual accounts receivable process to an automated one. 

First, you will need to choose the software you are going to use. This is a decision that must be made carefully, and with the full support of the accounting team, CFO and various company departments involved in the billing process. 

Once you have chosen your software, you will need to upload your client data and existing A/R aging reports into the system. Many companies find this to be the most difficult aspect of the process. However, automated account receivable software like SolveXia is compatible with many of the most popular accounts receivables apps and programs. 

Finally, you will need to formulate a plan to roll out the new software for all of your clients. Ideally, you would advise them 30-60 days in advance of implementing the new system so they have time to make any necessary changes to their payment system.

How Does Account Receivables Automation Work?

Account receivables automation works by performing many (if not all) of the manual functions associated with account receivables with the assistance of computer software. This software can be used for everything from sending out bills and processing payments to reconciling delinquent accounts. 

In fact, the best account receivable automation solutions allow CFOs and accounting teams to set up automated alerts to critical personnel when payments are received or also when accounts fall more than 30 days past due. 

An automation solution like SolveXia allows you to accomplish a full range of accounts receivable functions from an easy to use, and customizable dashboard. 

Once installed, accounts receivable software will allow you to process hundreds or even thousands of payments at a time. 

More importantly, these functions can be pre-programmed, meaning you only have to set it up one time and then you will have a fully automated system that runs according to your unique specifications. 

What Are the Benefits of Accounts Receivable Automation Solutions?

Accounts receivable automation solutions offer a host of benefits to any business, regardless of its size. Some of the chief benefits of accounts receivable automation include:

1. Increased Efficiency

Preparing invoices and inputting payments by hand are both incredibly time consuming and tedious processes.  

Another issue with manual accounts receivable is that if your organization or business operates in multiple markets, or accepts payment in different currencies, the opportunity for errors increases significantly. 

However, automating the billing and payment processes with an automation solution like SolveXia allows you to reduce errors by up to 90% while working at a rate 85 times faster than manual accounting systems. 

2. Increase and Normalized Cash Flow

One of the great benefits of using automation software is its ability to process payments electronically. 

When you have this option available for your clients, they are much more likely to use it because it eliminates the time and expense of them having to cut manual checks for invoice payment. That means you will not only receive your payments faster, you will also be able to devote more time to resolving delinquent accounts.

3. Easier Reporting and Regulatory Compliance

When you automate your accounts receivables process, you also create a set of automated payment ledgers and records. 

These records can be easily accessed from your software’s user dashboard when it comes time to complete corporate reports or demonstrate compliance with generally accepted accounting principles (GAAPs).

4. Cloud Storage/Worldwide Access

The best accounts receivable automation solutions also have a robust cloud storage capacity, which allows your CFO or executive team to access your reporting information from anywhere in the world at any time. 

So, instead of having to travel to meetings with critical information in paper form, you will be able to use a laptop or mobile device to dial up the information you need with the push of a button. 

5. Advanced Insights Through AI and Analytics

Another advantage offered by account receivables automation tools is their ability to harness AI and generate advanced analytics. These reports can create insights as to your company’s best selling, and most profitable products or provide guidance as to when your clients spend the most money. 

Manually compiling enough sales data to provide these kinds of deep insights would typically take so much time that no company would go through the trouble of doing it. 

By contrast, SolveXia’s automation tool would allow you to run these analytics automatically, and then benefit from the information without the aggravation of compiling it by hand. 

What Are the Challenges of Account Receivables Automation?

Technology can be a blessing, but it is not without its challenges. If you are considering accounts receivable automation software, you should be aware of the following potential challenges:

1. Compatibility

Successfully converting to a fully automated accounts receivable tool will hinge heavily on how compatible your chosen software is with your existing accounting systems and apps. 

If your software does not integrate seamlessly with the previous system, inputting the old data into the new system could be a tremendous challenge. One of SolveXia's many strengths is its compatibility with such a wide range of data sets, apps and programs. 

2. User-Friendliness

Software is only a viable option if the people who can benefit most from it are able to install and use it with a minimal amount of difficulty. An accounts receivable automation solution like SolveXia can be installed within a matter of hours, and more importantly, once setup it does not require advanced coding knowledge or excessive input from the IT staff. 

Once it has been installed, its user dashboard is intuitive (and customizable) enough that even your most “technically challenged” employees will be able to navigate it with relative ease.

3. Cost Effectiveness

Cost is always a consideration when you are looking at software options, but this especially true for accounts receivable tools. 

That’s because some software charges individual user or desk fees, and if you have a large staff, the cost could be prohibitive. So, the key challenge here is to balance features, user-friendliness and cost effectiveness. 

This is another area where SolveXia shines in comparison to its competition. It’s powerful enough to perform advanced functions and analytics under the accounts receivable umbrella, while at the same time offering you that power at a price that even a small to medium sized company can afford. 

Which Accounts Receivables Processes can be Automated?

Many of the most important parts of the accounts receivables process can be automated. Some specific examples of functions that you can accomplish automatically include:

1. Billing and Invoicing

Automated billing calculation and invoicing is a breeze with quality accounts receivables software. Once your clients are entered into the system, you can set a schedule for bills to be sent out electronically to all of your clients on an ongoing basis. 

2. Payment Processing

Automated account receivables software can also process payments incredibly rapidly. In fact, automation software like SolveXia can process thousands of payments at a time with 90% less errors than manual processing. This capability is incredibly important for companies that are doing microtransactions or e-commerce.

3. Report Generation

You can also leverage the power of accounts receivables software to generate important reports like total monthly revenue or accounts over 90 days delinquent. Being able to access this information within seconds as opposed to several hours will free the accounting staff up to concentrate on long-term projects. 

You can also use a tool like SolveXia to run more detailed reports, such as advanced analytics, that collates information in seconds that would have taken days, weeks or even months to manually track and compile into a cohesive report. 

What are Features of Account Receivable Automation Solutions?

Although there are numerous options to choose from when it comes to accounts receivable automation solutions, some of those features are more important than others. That’s especially true of the features that enhance user-friendliness and overall effectiveness. 

Some of those key functions include:

1. Automated Account Tabulation and Billing

At a minimum, your accounts receivables automation software should be able to tabulate the outstanding amounts for all your company accounts and generate billing statements. 

Ideally, you can schedule this to happen on a fixed date each month and program your software to send these statements electronically to your clients. 

2. User Dashboards

The “dashboard” or control panel is the heart of every accounts receivable automation tool. Ideally, your CFO and accounting staff should be able to access the full range of the tool’s functionality from a dashboard that is intuitive, user friendly and customizable. 

3. Report Generation and Analytics

One of the main features of a quality accounts receivable automation solution like SolveXia’s is its ability to run everything from basic reports (such as accounts receivable aging reports) to advanced analytics that can track customer transactions over an extended period of time. 

These key analytics can provide insights for CFOs on when, where and how the company is making (or losing) the most profit. 

How to Implement Account Receivable Automation Solutions

Implementing an automated account receivable solution is not something that should be done on a whim or the drop of a hat. It is an extremely detailed process that must be carefully planned in advance and that plan must be carried out to the letter. 

Some key steps in implementing an automated system include:

1. Compiling All Existing Data

Regardless of what software you choose, your existing accounting data and client information will need to be loaded into it. Whether that involves converting it from manually written ledgers or excel spreadsheets, gathering it into one place and in chronological order will be a key step in implementing your new software. 

2. Choose Your Software

This portion of the implementation will require significant input from all the key players in your company. Everyone, from IT, the accounting team, the sales staff and the company executives will need to be on board with the final decision and understand how to use it. 

3. Install Your Software

Installing your software is obviously the most important part of the implementation process, but often one that companies underestimate. This is one of the areas where SolveXia really shines, because you can install their software without advanced coding knowledge. 

More importantly, SolveXia can be up and running within a matter of hours, as opposed to several days or even weeks as is the case with some other tools that require coding or IT staff input.

4. Alert Your Clients

It’s always good to manage your client’s expectations. So, in advance of rolling out your new software and all its features, it’s always advisable to reach out to your clients and let them know you’ll be working with a new system. 

That way, if they have any questions or unique needs, you can address them before the software is implemented. This will pave the way for the smoothest possible transition. 

Is Accounts Receivable Automation Software Right for You?

If you’re a CFO and you are looking to make your accounts receivable management more efficient while also increasing revenue, accounts receivable automation solutions are the solution you are looking for. 

As is the case with all corporate decisions, choosing to automate, and choosing the software is something that must be done with consideration for all the moving parts involved. 

However, once you decide to automate, your choice in software will go a long way towards determining whether automating was a good decision. You must choose an automation solution that is user friendly, cost effective and flexible enough to grow with your company. 

SolveXia checks all those boxes. If you’d like to learn how SolveXia’s automation can accelerate your accounts receivables management, book a free demo today.