AR Automation: How To Get Paid Faster
As an entrepreneur, you know the struggle. It's hard enough to establish your company and make a profit. Unfortunately, most businesses don’t get paid in full as soon as their invoices are due.
Fortunately, the tight software for accounts receivable can help your company streamline the process of running accounts receivable (A/R).
What is AR Automation?
AR automation is an accounting process that automates accounts receivable for your business. Software for accounts receivable allows you to track essential metrics and improve cash flow.
Essential AR functions include electronically transmitting invoices, customer payments, credit memos, and payment memos to the manager of customer accounts. It also provides access to information on the status of each AR deposit, locations and times of deposits, and when the customer's check clears.
5 Tips on Getting Paid Faster using AR Automation
If you want to reduce the time it takes to collect money from your clients, consider automating your accounts receivable process with software. Read on to learn more about this option, and get some tips on how to get paid faster by using AR automation software.
Easy-to-Use Payment Methods
Accounts receivable (AR) automation software allows you to upload your invoice and attach them to a payment method. It ensures you don't miss out on any payments while giving you an easy way to collect funds through different payment methods, including ACH transfers or credit cards.
You can specify how much you want each client to pay, and AR software will automatically process their payments for you. By taking advantage of the ability to use several different payment methods, you increase your chances of getting paid faster.
A Communication System That Works
Giving your customers a payment reminder increases their likelihood of paying on time. Invoicing by email is convenient for sending bills to clients within minutes.
Electronically sent invoices are more likely to be received and paid on time than traditional invoices that are mailed or faxed. This simple tip can have a significant impact on the amount of money that your company receives.
Having Clear Payment Terms
It's imperative to follow the standard payment terms in your industry. However, if you choose to follow different terms, mentioning why you believe the payment terms are fair could help convince your client.
Your words must also be relevant to the situation to communicate more effectively. Including a clear call-to-action can boost the number of invoices paid on time.
Offering Incentives to Clients
Often clients may be slow in paying. You can motivate them to pay you in full by offering them incentives. They may be willing to pay more to get a free download or a special deal that allows them to save money.
By providing incentives, you're showing that intent for your clients to pay on time and not forget about their bills. Also, software for accounts receivable keeps a tab of all unpaid invoices. Setting penalties for late payments could also increase the number of timely payments.
Delivering Invoices on Time
To get paid faster, you should deliver your invoices on time. When you delay sending out invoices, your clients may forget about them. Or, they may assume that you're sending it out soon and put off paying you.
Getting paid on time is crucial for the success of any business. It wouldn’t be far-fetched to conclude that a lack of cash flow can lead to the death of your business.
Investing in the right tools, such as AR automation, can help you be proactive enough to ensure your business remains profitable and grows exponentially.