The main focus of industrial distribution is inventory management, order fill rates, transaction cycle times, low costs and satisfied customers. Not surprisingly, industrial distributors use ERP systems that focus on these areas. Accounts receivable management is often handled with other basic software applications lacking automated features, and even manually with spread sheets. As a consequence, accounts receivable costs in industrial distribution are often higher than they need to be.
The way to reduce costs is to use automated accounts receivable, invoicing and collection software, which can be seamlessly integrated with your existing ERP platform. This is a cost effective solution, especially when you consider cloud-based subscription software applications. Automated accounts receivable, invoicing and collections can help you to decrease costs in a number of ways.
Automated accounts receivable features which can increase efficiency and reduce costs include:
- Invoice Templates – Why recreate invoices from scratch over and over again? Invoice templates save processing time and reduce errors which can delay payments. Invoice templates also make it easier to invoice when shipments occur rather than in batches or at the end of the month.
- Reminders – Calling to remind customers that a payment is due or past due is ineffective, time consuming and costly. Automated features such as email or text reminders allow you to automatically send reminders with copies of invoices and account statements.
- Online Notes – Online notes are a single, easy to access source of the history of actions and conversations on past due accounts, credit limits and customer disputes. You will no longer need to review hand written notes in a customer file when you contact a customer, sales rep or company personnel to resolve customer disputes, credit limits and operational issue.
- Work Flow – Work flow facilitates the receipt and distribution of electronic copies to customers, sales reps, internal personnel, lawyers and financial institutions. Missing documents are frequently the reason for payment delays. Work flow helps to reduce the clerical work and accelerate cash flow.
REDUCE BORROWING COSTS
The most important benefit from automating accounts receivable, invoicing and collection is accelerated cash flow. Increased cash flow reduces financing costs and provides the necessary working capital to run your business smoothly. In addition to being able to speed up invoicing, automatically send reminders, help solve customer disputes and facilitate collections, you can provide online payment options.
Online payment options makes it easy for your customers to pay promptly. Providing a hyperlink to online payment options on electronic invoices accelerates cash flow. Don’t give your customers an excuse to delay payment by cutting and mailing a check.
Automated accounts receivable, invoicing and collection can reduce accounts receivable costs in industrial distribution. The key to successful accounts receivable automation is working with a software partner experienced in seamless integration with ERP platforms.
Lockstep Collect is a leader in cloud-based and premise based software solutions made especially for businesses selling on credit. Lockstep Collect can integrate with many ERP platforms including Sage, Microsoft Dynamics, Oracle, NetSuite and SAP.
If you would like to learn more about how you can benefit from automating your accounts receivable, invoicing and collections, please contact Lockstep Collect at www.anytimecollect.com.
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