There aren’t many businesses willing to heed the advice or retain the services of an inefficient accounting firm. If you have a hard time managing your time and finances, clients are not going to trust you with theirs.
Technology like accounts receivable (AR) automation is a surefire way for accountants to streamline process errors, reduce errors, and better allocate their time. This is especially crucial as firms navigate their way through a staffing shortage.
As accountants, you know it’s nearly impossible to get something for nothing, and improving processes can be costly.
AR automation increases efficiency without driving up costs.
Going fully digital eliminates expenses tied to paper receipts, envelopes and checks. AR automation is scalable and enables you to handle spikes in workload without the expense of hiring and training temporary staff. It also shields your team from burnout and assists in the retention of loyal and experienced employees.
Matching transactions with the cash in your account not only balances your budget but also provides valuable insight into finances and shines a light on pain points. It’s also very time-consuming and, when done manually, susceptible to mistakes that can have a catastrophic effect on your firm.
AR automation automatically reconciles invoices to payments with speed while eliminating the risk of human error, saving everything digitally into a single, secure platform that’s easy to access. If a billing or payment discrepancy does arise, AR automation alerts you instantly, enabling you to fix the problem immediately.
Fewer industries experience a busier time than accountants during tax season when they routinely put in close to 80 hours a week and often have to work on the weekends. A shortage of accounting professionals adds even more stress to this challenging time of year.
Leveraging AR automation makes tax season easier to manage. You and your team don’t have to worry about time-consuming tasks like reconciling and distributing invoices, sending payment alerts and reminders, and processing payments.
That frees you up to handle more returns and serve your clients. And because automation eliminates human error, you won’t have to worry about an extra workload leading to costly errors.
Not only does AR automation create more bandwidth for accountants but it also gives them the time required to provide helpful strategies and advice tailored to meet the needs of each specific client.
An Atradius study estimates that more than 50% of all invoices from U.S.-based B2B companies were paid past due in 2023. Delinquent payments make for a high-stress environment but also make it difficult for accounting firms to run with optimal efficiency and achieve profitability.
AR automation helps you internally by handling manual accounting chores. And it simplifies the payment experience for clients through features like buyer-managed digital wallets and Pay Now, which enables them to pay balances by simply clicking a button. You and your clients also have the ability to use AutoPay, where you simply draft recurring fees each month from clients’ digital wallet.
You get paid faster while your clients avoid late fees.
Digital payment options through automated clearing house (ACH) and debit and credit cards are easier and faster to process than checks. They also eliminate the risk of you and your clients falling victim to check fraud, expected to cost organizations $24 billion in 2024.
Being efficient means more than just working with speed and precision—you need to resolve billing disputes and other discrepancies before they turn into major problems. Your clients’ time is valuable. They’re not happy when calls go unreturned and emails are ignored.
Communication is easy through AR automation, which features self-service customer portals where you can chat with clients in real-time and send emails with up to 10 documents attached. The right AR automation platform provides your clients with a complete invoice history, enabling them and you easy access to the information that brings swift resolution to any problems.
Rather than making time-consuming phone calls to clients that can grow uncomfortable, you can simply schedule automatic payment reminders and alerts through AR automation that can be sent to whomever and whenever you choose.
You know your clients best, which is why these can be tailored to those who prefer communicating through email or text. AR automation also alerts you when a typically punctual customer is past due and gives you a chance to reach out proactively to see if there’s an issue with their recent bill.
Efficiency is everything in accounting. Automating time-consuming tasks reduces errors and enhances communication with clients, empowering firms to better serve their clients and navigate challenges like staffing shortages and the stress of tax season.
AR automation will never replace accounting professionals. Rather, it enables them to deliver the high-quality, personalized service their clients expect while positioning themselves for long-term success.
Sponsored Content: This article is generously brought to you by one of our valued sponsors. Their support enables us to continue delivering expert insights and the latest industry trends to our dedicated community of accounting professionals.