How AR Automation Integration With Payments Digitization Is Beneficial?

Over 80% Of Small And Medium Businesses Receive Late Payments From Customers

…… and you can be in the 20% that get paid on time!

Accounts receivable (AR) processes are core to your business. But they often remain very manual, with letters; emails, and phone calls. There is one challenge that is faced by the Account Receivable professionals is that 80% of SMB receive delayed payments that affect the cash flow.

“In today’s economy, AR automation is a must if you want to stay cost-competitive,” says Guillaume Vives Co-founder of Troveworks.com. Several studies have shown that close to 50% of the back office jobs will disappear by 2030 and you do not want to be the last one to embark on your automation journey.

“Cost Reduction is not the main reason to deploy an AR Automation solution, it is to reduce your working capital” adds Guillaume from Troveworks.com. Reducing the time it takes to collect your customer's invoices from an average of 55 days down to 35 days means that you actually saved 20 days of working capital - that can be huge for your company's performance.

But keeping your DSO low (Days Sales Outstanding) also means that you have a good handle on your customers' communication. You have put in place an efficient 80/20 ratio between the customers that pay on time (80%) and the customers who have issues with your services or are just bad payers (20%). And now you have automated your collection, your team can focus on the 20% and apply their customer skills to close the issues.

When Accounts Receivable automation is integrated with payments digitization, there’s another advantage: the risk of check fraud is significantly reduced. This fraud reduction, coupled with precision and timeliness improvements, makes payments digitization and Accounts Receivable automation a winning combination when it comes to improving company cash flows and overall profit. Implementing AR automation could save precious human and monetary resources that could be devoted to other business pursuits.