In the wake of the rapidly changing economy, mid-sized businesses around the world are moving towards leveraging technology as a solution to enhance business resilience and flexibility to accelerate growth. More often than not, mid-sized businesses do not have the financial cushion to support them during uncertain economic swings, ergo to stay at par with global competition, a transition to a digital business model becomes imperative.
The impact of technology in the business world is no longer a secret. Executives around the globe have accepted the fact that continuous technological investment is a business requirement for survival in the long run. Consequently, leveraging technology to optimize daily AR operations could help businesses thrive in today’s day and age, giving an edge over competitors.
Accounts Receivable is the lifeline of most companies, and AR professionals are no less than superheroes when it comes to improving a company’s cash flow and securing working capital. But every Batman needs a Robin, right? Technology plays the crucial role of a reliable partner that enhances AR team productivity and reduces operating costs to support growing business needs.
Let’s dive deep into each AR process and see how technology could help eliminate potential revenue leaks to boost up a company’s financial health.
The loopholes that make businesses miss the bull’s eye!
More credit could mean more business = increased sales. The irony is that it may also carry additional costs including –
Technology- Unknotting the loop!
Technology plays an essential role in minimizing the risk of cash loss and propel revenue growth.
The silver slipping out of sight
The process of generating and delivering customer invoices and receiving payment incurs a big chunk of the overall cost of AR. Some of the cost factors include –
Technology- The lost and found for businesses
Automating the invoicing process by leveraging technology could result in over 90% cash savings, along with improving the timeliness of payment and cash flow.
The ills of the bills
Manual cash application is highly labor-intensive and costly. Some of the hidden costs associated with cash application are as follows:
With the right mix of technologies, the cash application processes could achieve a high level of automation and significant cost savings.
The power parasite
The collection team is responsible for bringing cash in. But, like any other AR process, this too involves hidden costs.
Technology- The reset button
Leveraging technology to automate the collection process can eliminate potential revenue leaks and, at the same time, improve a collector’s productivity by 30%. Let’s look at some examples:
AI-enabled Collections Software: Using an automation solution could provide useful features such as proactive reminders, strategic dunning, easy sending, and tracking of en masse correspondence to collect faster, thus eliminating borrowing costs.
Voice over Internet Protocol(VOIP) Calling: VOIP is a technology that can allow collectors to make voice calls using an internet connection to contact any customers across the globe. A Collection software with in-built VOIP calling allows collectors to talk to customers while sending emails and logging notes, thus avoiding missing out on essential information and saving additional administrative costs.
AI-enabled Digital Assistant: A Collection software with an AI-enabled digital assistant could automatically record calls, capture notes, promise-to-pays, and recommend actions to be taken by collectors for proactive collections. This could help businesses avoid outsourcing external collection agencies and save a huge fortune.
Over the past years, Accounts Receivable Processes have evolved significantly, enabled by new technologies that automate and streamlines manual processes, and generate hard dollar savings. Despite the economic turmoil created by the COVID-19 pandemic, mid-sized businesses are trying to bring up their A-game, but hidden costs associated with AR processes could pose a major challenge. Ergo, identifying such hidden costs and leveraging technology to eliminate them could save a lot of money and, at the same time, help attain efficiency and effectiveness goals.
The HighRadius RadiusOne A/R Suite is a complete accounts receivables solution designed for mid-sized businesses to put their order-to-cash on auto-pilot with AI-powered solutions. It leverages automation to fast-track key accounts receivable functions including eInvoicing & Collections, Cash Reconciliation, and Credit Risk Management powered by RadiusOne A/R Apps to improve productivity, maximize working capital, and enable faster cash conversion. Affordable, quick to deploy, and functionality-rich: it is pre-loaded with industry-specific best-practices and ready-to-plug with popular ERPs such as NetSuite and Sage Intacct. The HighRadius RadiusOne A/R Suite is designed to automate labor-intensive processes while streamlining credit and collections activities for faster A/R processing, better cash flow and improved profitability.