Overdue invoices can cripple a business’s cash flow. Not only is it difficult to keep operating when payments are unpaid, pursuing debtors is time consuming and often involves several manual and disjointed processes. And if you are one of the many Australian companies with almost a third of their unpaid bills, dealing with all of your debtors can seem like a Herculean task.
While some businesses may choose to hire a debt collector to get paid, this can be a move that hurts relationships with customers. So how can your business deal with late payments in an efficient and user-friendly way? It’s easy if you use the right technology.
Keep reading to find out how you can streamline and make chasing late payments efficient while putting in place the systems to stop any future late payments in their tracks.
Automating Your Accounts Receivable Process Makes Debt Collection A Child’s Play
Before I describe how you can spend less time chasing late payments, it’s important to note that not all debtors are created equal. Even some of your best clients may be late paying, sometimes because of a lack of funds and other times because life is busy and they experience administrative delays or mistakes at their end. On the other hand, there are also those customers who systematically pay late.
With a reliable accounts receivable management system, you can remedy administrative errors that cause invoices to go unvoiced while providing problem debtors with a dedicated portal to manage their payments.
What are the main advantages of a reliable accounts receivable management system?
Accounts Receivable Management Solutions like Spenda offer a range of features that help suppliers and customers improve their communication, collaboration and cash flow management. Your customers will have more flexibility on how and when they pay. Plus, you’ll be able to turn your accounts receivable to cash faster and have more cash flow compared to chasing late payments or manually organizing a payment plan with your customer. .
Some key features of Spenda’s accounts receivable management solution include:
|Pay one, several or all invoices||A dedicated portal that gives customers access to an intuitive interface to track, aggregate and batch pay unpaid invoices. You can also set up automated invoice reminders to encourage customers to access the portal and pay their invoices even if they don’t currently have available funds (see payment options below).|
|Flexible payment options||With a range of payment options, you’ll enjoy added security and increased cash flow by giving customers multiple ways to pay even if they don’t have money. These payment options include wire transfer, credit card payments, and access to subsequent payment options. Customers will also be able to schedule how and when to pay, so you know exactly when to expect payment. It also allows you to view your cash flow in real time, so you always know how your business finances are going.|
|Real-time integration||The integration with your existing accounting software and ERP management system, reduces data entry errors, eliminates manual processes and ensures transactions are updated at all times.|
|Automated reconciliation||With automatic reconciliation in a secure ledger and access to the debit account, both parties can easily access a single source of truth for all transactions. Each party’s ledger will be in sync at all times, whether you are the supplier or the buyer, providing better collaboration and more accurate cash flow updates.|
In addition, your business will benefit from:
- Save time by eliminating the need to manually hunt overdue customers.
- Reduction of administrative problems.
- Reduced data entry errors.
- Automatic reconciliation of accounts.
- Improved cash flow.
Unlock your business growth with connected apps
To drive your business growth, leveraging other connected apps like automated purchasing and smarter warehouse and inventory management can ensure your business is ready to grow across the board. These tools will not only help you unlock better cash flow management, but they will also help your entire team work smarter, leaving time for the work that matters most.
Get paid faster with Spenda
Spenda helps businesses get paid faster by improving the way invoices are viewed and paid in B2B commerce. Improving your payment and receivables management processes is key to ensuring a consistently strong cash flow. Plus, with options to use business financing to turn your bills into cash faster, Spenda provides plenty of opportunities for businesses to increase their cash flow.
Click here to download our free guide on how to improve cash flow management across your business, and learn how to save time on late payments, get paid faster, and reduce bad debt.
* This article is for general informational purposes only. Consult with a qualified financial advisor regarding any changes or decisions regarding your business finances.