According to information research firm Association for Information and Image Management (AIIM), 50 percent of all American businesses still use antiquated manual processes to manage their accounts receivable; sticky notes, spreadsheets and other outmoded accounting tools are still part of their billing and collections systems.
Some business owners may believe that using these manual touch points creates the illusion that their companies have meticulous accounting processes – but the truth is there are a myriad of consequences beneath that illusion. According to TermSync, an accounts receivables automation firm, the unwanted fallout of outdated manual billing includes:
- Higher operational costs and lower productivity
- Increased days sales outstanding (DSO)
- Decreased customer satisfaction rates
- Lengthened dispute resolution
- Limited control over post-sales collections interactions
- No visibility for data tracking or reporting
- Greater risk for regulatory non-compliance
What’s the Solution?
The most practical solution for a company experiencing these problems, says TermSync’s President, Mark Wilson, is accounts receivable automation. “Not necessarily every aspect of AR can or should be automated,” he said, “but at the same time, it is no longer acceptable to expend already limited resources on tedious tasks and outdated practices. That just makes for an antiquated, inefficient accounts receivable department.” Wilson contends that using an automated solution for billing and collections organizes the receivables process – and, he says, “Based on the rules you have set for your company, it automates the parts that should be automated freeing your team members to focus on the more complicated issues.”
To be specific, TermSync’s automated AR solutions offer:
- Invoice delivery, wherein invoices and other AR documents are delivered on-demand according to customer preferences
- Collections management, which makes managing post-sale collection interactions easier with workflow tools such as automated payment reminders, customized to-do lists, deductions management, and more.
- Customer portal, wherein customers of a company are able to perform self-service actions such as retrieve invoice copies, make payments, and apply credits.
- Analytical capabilities, with on-demand reporting that lets users retrieve critical information to see where payments, cash flow and other AR components stand
“It truly is the best way to simplify your receivables processes,” Wilson said. “From a business standpoint, it’s cut and dry because the return on investment is staggering. We’ve seen cost savings of up to 80% when a company automates their AR, and days sales outstanding are on average reduced by 29%.”
TermSync lists other AR automation efficiency benefits, which include:
- The prevention of lost invoices and documents
- Improved process control for quicker collections from customers
- Improvement tracking, customized workflow priorities and better-managed growth
- Improved relationships with customers
- Happier staff members with lower employee turnover
- Higher rates of customer portal adoption
- 100% regulatory compliance through TermSync’s e-invoicing system
“TermSync automation solutions help fill the large gaps throughout the billing and collections process,” Wilson said. “We help make AR a truly efficient, profitable process from beginning to end.” He continued, “Our clients are getting paid faster while spending less time and most importantly improving relationships with their customers.”
TermSync makes its services available to businesses nationwide. For more information, visit www.TermSync.com.