In the business-to-business community, there has been a lot of buzz about the benefits of bringing your accounts payable process online. From reducing errors and process inefficiencies to mitigating fraud risks, removing paper from the AP equation can be an important spark for businesses looking to improve their bottom line. Less talked about, however, is the value of automating your accounts receivable process. Embracing a digital AR strategy offers companies many of the same benefits they seek in their AP departments and more.
To see just how big a difference an automated AR workflow could make for your company, consider the ways in which your existing manual processes could be holding you back:
- Orders may be lost or misplaced.
- Orders are susceptible to user-error.
- Slow invoicing hurts cash flow.
- Reporting and other digital integration is difficult.
Having an automated accounts receivable process could remedy these challenges, making it easier for companies to get paid accurately and on time. For example, while most businesses demand payments on credit sales within 30 days, it takes customers an average of 50 days to actually make those payments, according to a CEB TowerGroup study. By replacing paper notices sent via the mail with electronic invoices, wholesalers can speed up the order-to-cash process while adding convenience for their customer.
"An automated AR process helps companies get paid accurately and on time."
Or, armed with the right payment processing technology, B2B companies may choose instead to steer their customers toward paying with commercial credit or debit cards. These forms of electronic payments offer cash back bonuses for buyers while allowing merchants to get paid right away.
At Vantage, we are experts in helping wholesalers identify and implement the ideal payment technology for their business model. Talk to one of our payment advisors today to learn more or schedule your free demo.