In our just lately concluded webinar, “The ten Items of Accelerated Money Move”, we invited Amanda Lee, Founder and Receivables Administration Advisor at The Retriever, to talk with Arjun (AJ) Singh, Co-Founder and CEO ezyCollect, to debate how one can reap the benefits of a streamlined and optimised O2C course of by way of accounts receivable automation, making a seamless cycle that not solely ensures you get funds effectively but in addition enhance your relationship with prospects. Listed here are the important thing takeaways from the session.
3 important areas of focus within the O2C cycle for accelerated money movement
1. Finest apply credit score approval
Extending commerce credit score is one thing that many companies do manually, and this could trigger numerous points that may result in dangerous money owed – affecting your money movement in the long term. Adapting an automatic and data-driven course of delivers efficiencies which can be useful for each you and your prospects.
First of which is a extra dependable credit score examine. Not like handbook software processes that primarily depend on commerce references given by the client, an on-line credit score software system integrates credit score danger scores from commerce reporting companies so you will get data-driven insights and make higher selections earlier than onboarding prospects and increasing credit score. Having this information at your fingertips provides you that skilled information with out a lot effort, and also you’ll have the ability to handle danger proper from day one, making that objective of accelerated money movement a lot simpler.
One other advantage of on-line credit score purposes is a greater onboarding expertise. First impressions final, because the adage goes, and that couldn’t be farther from the reality in enterprise relationships. Onboarding prospects in a disorganised, time-consuming course of which can be liable to error displays an unprofessional picture in your half – inadvertently sending the message to your prospects that they will reduce corners as you do. By digitising a credit score software, you create a streamlined and automatic course of that not solely advantages your operational effectivity but in addition means you imply enterprise, and prospects have to be in that very same stage of credibility too.
2. Humanised automation
Humanised automation appears contradictory, however a part of lowering your overdue accounts hinges on this balancing act of human connection and automation. Automation creates communication efficiencies in accounts receivables, paving the way in which for a extra private strategy to prospects that want it probably the most.
With an automatic communication workflow, you don’t should bodily talk with everybody, however you’ll have the ability to concentrate on prospects that want extra. An AR automation platform tells you who these prospects are by way of consolidated credit score and danger information, offering you with that chance to attach and construct relationships. To really perceive why your prospects’ cost behaviour modified, there needs to be human interplay concerned. You’ll be able to work with them to resolve blockers stopping them from paying you on time. It’s about persevering with that cycle to promote, and having a receivables ledger that’s 100% collected every month and clear, persistent, and personalised communication along with your prospects goes that will help you obtain that.
3. Frictionless funds
Getting your cost on time is the objective of an optimised O2C course of. It’s essential then to make this a part of the O2C cycle as pain-free as attainable, permitting your prospects to pay at a time handy to them by way of numerous cost strategies that they will select from.
An on-line cost platform is designed to just do that, not solely as a portal the place prospects pays you but in addition consists of their statements, in order that they not must contact you, particularly when making the cost after workplace hours – all the knowledge they want is available to them. By creating handy pathways for cost, you will get paid simply and shortly.
The presents of accelerated money movement
As we’ve discovered to date, an accelerated money movement could be very a lot attainable due to accounts receivable automation. Whereas an improved money movement is the tip objective of automation, optimising the O2C course of additionally comes with its advantages.
1. Higher enterprise intelligence
AR automation provides you entry to information and provides you the insights to make higher selections that may have an effect on the well being of your small business.
2. Enterprise continuity and information integrity
AR automation resolves money movement points, as we now know. With an improved money movement, you’ll have the ability to run and develop your small business the way in which you wish to.
3. Sharpen your focus
Automation will get all of the repetitive duties carried out, so you’ll be able to hone in on strategy-related duties that additional your small business.
4. Shore up buyer belief
Automation ensures consistency in processes and clears communication pathways – each of which let you construct belief along with your prospects and, in flip, foster buyer loyalty and progress.
5. Buyer Notion
Digital, automated processes are actually the norm and what your prospects anticipate. Adapting automation in your small business creates an expert picture and aids in model fairness.
6. Lowered DSO
Automation streamlines your O2C cycle, eradicating any friction between processes so you will get paid promptly.
7. Error discount
AR automation minimises the necessity for handbook entries, lowering errors. Its functionality to combine along with your ERP additionally means there’s no double-handling of information that may result in extra issues in your accounting.
8. Time financial savings
Leveraging an account receivable platform removes the necessity for handbook processes, saving your workers tons of time. The period of time saved can then be used to concentrate on extra high-value work that may develop the enterprise.
9. Acquire real-time visibility
With an AR automation platform, you will get a stay view of credit score danger scores to be assured in making selections based mostly on present and correct information.
10. Improve effectivity throughout the enterprise
Whereas AR automation improves the collections processes of your receivables, this additionally interprets into enhancements throughout enterprise features and groups.
Watch the webinar