Automation is everywhere these days. From smart investing apps to robot vacuum cleaners to virtual assistants in our homes, automation makes almost every facet of our lives easier. So why wouldn’t you apply the same principle to your business?
Accounts receivable automation can supercharge your business in three key ways: by streamlining your accounting process, lowering your payment processing costs, and increasing your cash flow.
1. Streamlined accounting process
Manual payment processing involves a lot of time-consuming steps: running the payment, recording it in your accounting software, and reconciling everything at the end of the day. Oftentimes, you have to use two or more different programs and switch between them. It’s enough to give anyone a headache.
Accounts receivable automation streamlines the entire process by bringing it all into one place and eliminating unnecessary steps. When you use an integrated payment processing solution, you can seamlessly accept credit card payments directly in your accounting software. The integrated solution then automatically applies the payment to the invoice, removing the need for double data entry. No more switching between multiple programs or trying to reconcile everything at the end of the day. With AR automation, your team will spend less time on payment acceptance, make fewer errors, and have more time for essential tasks.
What could your business do with that extra time?
2. Lower payment processing costs
Unfortunately, accepting credit card payments isn’t free. Every credit card has various fees associated with it, fees your business will have to pay. The good news is, there are easy ways to lower those fees.
When your business accepts payment from a credit card, you incur certain fees, such as the discount rate, the assessment fee, and the authorization fee. These fees are set by the card brands (VISA, Mastercard, Discover, etc.) or the credit card network and are unavoidable and unchangeable. However, your business also pays an interchange fee. This fee is a little more flexible and can be altered by the way you process credit cards.
The more information you include with each transaction, the less risky the sale is, and the interchange fee goes down. It’s in your best interest to go the extra mile and include this additional information with each sale, but entering data with every transaction takes time.
Accounts receivable automation helps you by automatically including these line-item details at each point of sale, so you don’t have to manually enter them. These line-item details qualify the credit card at a lower interchange rate and reduce your overall interchange fees, so you pay less to process each credit card. Over time, these savings add up, and are reflected in your monthly credit card processing statement.
Where could your business use those extra savings?
3. Increased cash flow
AR automation does more than increase your efficiency and lower your costs. It can also help you get paid faster and increase your cash flow.
The best accounts receivable automation solutions also offer payment collection tools that give your customers convenient payment options. And when you make payments easy for your customers, they’re more likely to pay on time, and you benefit from a healthier cash flow.
With advanced payment collection tools, you don’t need to rely on lengthy phone calls or clunky PDF invoices, and you don’t need to spend hours following up with customers. Instead, you can bring everything online so your customers can make payments anywhere, anytime.
For example, you can give customers the ability to pay off invoices through an online customer payment portal, take quick payments via a mobile app, or send convenient payment links via email. Better payment collection tools will benefit both you and your customers: they’ll be delighted by the easy transaction, and you’ll spend significantly less time collecting payments.
What could your business accomplish with better cash flow?
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Are you ready to supercharge your business?
Implementing AR automation is an easy way to supercharge your business. One small change can lead to a more efficient workflow, lower payment processing costs, and improved cash flow, all without extra work on your part. Between the combined time and money savings, your business will have the resources it needs to thrive.
The best accounts receivable automation solutions are easy to install, don’t require any development, and seamlessly integrate with your accounting software. Choose a solution like EBizCharge to see how AR automation can revolutionize your business.