AR Automation's Impact on Modern Businesses

Timely, accurate payments are the lifeblood of any successful business.  

The AR department or team is often responsible for ensuring these payments run smoothly, from invoice generation to collection status. Managing this important aspect of a business requires incredible attention to detail—something that can be hindered via human error and manual data entry. 

With improved accuracy and performance goals in mind, many organizations are turning to a technology that can solve their AR-related woes: AR automation. AR automation streamlines invoice generation, automates payment tracking, and enhances overall cash flow management efforts. It also makes a significant impact on a key area of operational success: customer payments.  

In this blog, we’ll take a closer look at how AR automation can be leveraged for improved financial performance, enhanced employee satisfaction, and more cohesive customer payments.  

AR Automation: A Quick Overview 

Automation technology has swept through many organizations, industries, and departments—the Accounts Receivable Team is no exception. To put it plainly, AR automation simplifies the management and tracking processes associated with payments. By automating tasks such as invoice generation and distribution, payment tracking, and payment status, your business’s key payments will flow more accurately, efficiently, and cohesively. 

Common AR-related processes like manual invoice management, tracking down overdue payments, reconciling payments with outstanding invoices, and generating reports can be performed with ease—and take far less time—with AR automation.  

This improvement can look like: 

1. A significant reduction in the time and effort required for everyday routine tasks performed by your AR team.  

2. Boosted operational efficiency for the entire accounting department, from AR to AP and beyond.  

3. Increased process accuracy thanks to the reduction of human error in data entry.  

4. Real-time visibility into current invoice and receivables’ statuses.  

5. Better customer satisfaction through a wider variety of payment method options, consistent payment updates, and transparent communication.  

AR Automation’s Internal Impact 

This improved efficiency is a benefit not only to your organization’s bottom line but also to its “front line” --your AR professionals. Faster invoicing and payment collection, more accurate reporting, and a reduced administrative burden free up your staff for more strategic initiatives. This allows them to focus on work that requires critical thinking and creativity, making them a more impactful part of the company’s overall growth, innovation, and long-term goals.  

Considering how much professional growth and recognition for achievements affect employee satisfaction, introducing AR automation into your AR team is a worthwhile investment. 

AR Automation and Customer Payments: A Match Made in Heaven 

One of AR automation’s strongest value points for customers is its ability to accept and process multiple payment methods across multiple payment channels. ACH, credit cards, virtual cards—the right AR automation solution can seamlessly handle whichever method customers prefer with ease. This ultimately enhances your AR processes by: 

• Giving customers access to a self-service payment portal, where they can easily view and pay invoices online without requiring manual follow-ups. 

• Reducing the risk of delayed or inaccurate payments by enabling customers to rely on their payment method of choice, be it credit card, ACH/EFT, wire transfer, etc. 

• Automatically reconciling incoming payments with outstanding invoices, eliminating human error and making sure cash flow remains accurate.  

An AR automation solution can enhance your cash flow, give your employees the performance and morale boost they need, and improve your overall customer satisfaction. 

If this sounds like something your organization is looking for, schedule a demo with one of DocuPhase’s AR automation experts today!