Fintech encompasses different software programs that allow for easier and more efficient accounting. For the accounts receivable department, Fintech is starting to take off with many new innovations to help the department get paid faster, while unloading a lot of the stress and work off of the team members. Below are 4 Fintech trends that many accounts receivable departments should consider implementing for themselves.
PREDICTIVE CASH FORECASTING
In every accounts receivable department, one of the most important factors to know and understand is how much cash you can be expecting. This can be hard to determine when you’re completing the calculation manually. However, with predictive cash forecasting, an algorithm can be used to determine how much cash will be coming in based on past data patterns showing which customers are most likely to pay and when.
One of the most likely sources of bad data often occurs when you’re re-keying information from one system to another. Using accounts receivable software that has cash application, or posting back to your business software or accounting system, ensures accurate data and less work for the whole team.
When you’re using online bill pay and accepting electronic payments, customers are able to pay the invoice completely on their own. Once they receive an email, they simply click a link and enter in their payment information. Payments can even be automated, allowing for recurring charges. That’s one step of work towards getting paid that you can completely eliminate.
It’s not enough anymore to simply mail out an invoice or a reminder letter. Collections efforts have to meet the customer everywhere they do business. New technology allows you to automate email collections, text message collections, collection phone calls and more.