There becomes a point as a business starts to grow that the accounts receivable department may feel like they just can’t keep up anymore. You may be considering adding another employee to the department or outsourcing some of the work. However, there is an alternative that is a lot less costly. Using billing software for accounts receivable does not require you to add another salary or hire another company to do your accounts receivable, but it does automate a lot of manual tasks that leaves more time for your current accounts receivable team to get the work done necessary to collect.
Below, we’ve listed a few benefits of using billing software for accounts receivable.
1. When sending out invoices, collection letters, payment reminders and other important information to customers, you no longer need to manually craft each individual email. With billing software, this process can be automated based on rules set in the system.
2. Customers no longer need to call in to find out how much they owe or to retrieve past invoices. Billing software allows them to log in to a payment portal that has all of this information for them.
3. Payments are faster since customers can make a payment via ACH or credit card through the payment portal.
4. Every day when you log into the billing software, your collectors can see exactly what they need to do, who they need to call and all the customer information from one screen, prioritizing their work.
5. Customer phone calls are recorded, transcribed and posted back into the billing software. This eliminates issues of broken promises to pay and payment excuses.
6. The longer an invoice is in dispute, the less likely your chances are of collecting on the entire invoice. Invoice disputes are dealt with faster with billing software because they are automatically escalated to a credit manager when needed and tagged with a reason code.
7. Customer’s credit scores are stored in the billing software so you can be alerted when there is a change, reducing credit risk.
These are just a few among the many benefits of using billing software. So many tasks become automated that your collection representatives can focus solely on calling accounts that need to be follow up on and collecting cash. This will also allow you to take on more accounts without having to add additional employees.