How to select an Accounts Receivable Automation solution

Digital transformation helps businesses to do more with less by automating manual processes, making them more efficient and secure. One core finance function where the gains of automation have often not been fully realized is Accounts Receivable (AR). And these gains are substantial. 

The journey towards automated AR begins with a pivotal decision: choosing the right solution. In this blog, we navigate you through the essential considerations in the selection process, helping you make an informed choice that aligns with your unique business needs and goals. 

Automation in AR

Digitalization is much more than a buzzword; it is a means to remain competitive.  

For AR departments with a heavy load of manual processes investment in automation software is transformative. Processing flows are streamlined and the need for AR agents to perform manual, time-consuming, and error-prone tasks is eliminated. As a result of automation, your finance operations become more effective, with the gains in efficiency making a material difference to the cost of running the department.  

Transitioning to automation in AR will not only optimize invoicing processes but also accelerate the payment cycle. 

For example, when injecting automation into your invoice delivery process or collection processes, you improve your cash flow and minimize the amount of time and resources spent on these tasks. 

The upsides to AR Automation are undeniable. The next step is to consider how you could make this a reality for your business and select the solution that is the most suitable for you. 

Choosing an Accounts Receivable Automation solution

The first step is to go through a selection process to determine what type of AR Automation software best fits your business needs and goals. Your choice of solution is determined by your current set-up and the manual effort required for each task. 

Below we have listed different aspects to consider when choosing an AR Automation solution: 

1. Features: consider the different attributes that the AR software offers and compare them with the features you need.
   
   
2. Ease of use: look for a user-friendly AR solution that is easy to maintain.
    
3. Customer support: make sure that your solution offers reliable customer support and do not fail to inform yourself about the terms and possible limitations of that support.
   
   
4. Integration: check whether the solution can integrate with your existing ERP and other core systems or portals such as e-invoicing platforms or governmental portals.
   
   
5. Pricing: you need an AR solution that fits your budget and gives you a ROI that is attractive to you.

There are many types of AR Automation systems on the market, and each solution offers different features and benefits. Here are the main ones: 

• Automated Invoice Delivery   
• Collection tools  
• Payment reminders  
• Cash application  
• Cash and credit reconciliation  
• AR reporting

Cevinio is proud to offer an Invoice Delivery Automation solution; we describe this type of AR software below. 

AR Invoice Delivery

Generating accurate and compliant invoices and transmitting them to customers is a complex and time-consuming task. The team responsible for this function must ensure that all mandatory details are included in the documents, preventing suppliers from rejecting invoices and delaying payments. Additionally, the billing team has to send out invoices in the right format and to the proper recipients, which can be challenging at times. 

Ask yourself the following questions: 

• How many times have your suppliers told you that your invoices are missing in their system?  
• How many times have your suppliers rejected your invoices because of missing information? 
• How many times have you received a late payment?  

AR Invoice Delivery Automation changes your answers to these questions. “This never happens – or only in the most exceptional circumstances” – that is the confident reply that automation can deliver.  

As your newly implemented automation solution for invoice delivery is up and running you will experience a range of improvements to your business processes: 

1. Invoices enriched with correct information 
2. Invoices converted to the right format 
3. Invoices automatically delivered to different customers or portals
4. 100% compliant invoices 
5. Correct invoice layout with all mandatory requirements 

With Cevinio you will be able to enjoy these improvements and more. Read more about our smart AR Invoice Delivery Automation solution which comes with out-of-the-box connections to any ERP. 

Start benefiting from AR Invoice Delivery Automation now

Once you have implemented the functionalities outlined above, your suppliers will receive your invoices in the correct format, with the correct information, and on time. And remember, your AR invoice delivery process will be much speedier, which has a direct and positive impact on your collection strategy and cash flow as more payments are received on time. 

This is the point where you might ask: ‘The benefits and ROI are compelling, but after I select the AR Automation solution that is right for us, how long do we have to wait to see results, save money, and improve our cash flow?’ 

Implementing AR Automation does not need to take long – you can have your best solution up and running within a couple of months depending on the complexity of your business. At Cevinio, we have a hassle-free implementation approach which requires minimal effort from your team.

Conclusion

Businesses need to go fully digital and look for solutions that streamline their Accounts Receivable processes. This will improve their billing and collection processes, among others, and help them reduce costs and manual work. Choosing the right AR Automation software is key and you should carefully consider the different aspects of your choice as we have described in this blog. 

If you want to learn more about Cevinio AR Invoice Delivery solution and our unique set of features, do not hesitate to contact us.