What Your AR Team Wish You Knew

what your ar team wished you knew
What if we told you that you didn't have to use a crystal ball to try to understand what's happening in your AR team? In fact, please don't - we've got you covered.

Now, if your knee jerk reaction is, 'I already know everything,' we hate to be the bearer of bad news, but there are certain things that your team won't bring to light due to four main reasons: 
 
  • You're their boss.
  • These problems are rooted in years of traditional manual processes.
  • It can be challenging to find the root cause of an issue that's often embedded in every aspect of your workflow.
  • Complaining about an issue is daunting if you don't have a solution.

Fortunately, that's why we're here: to share the not-so-best-kept secrets of AR teams. 
 
It starts with an 'M'

You may have heard it before, but 'manual' processes are getting a terrible rep, and rightfully so. Especially when it comes to AR processes. But what exactly do manual processes entail? 'Manual processes' is the umbrella term for all processes and tasks lacking automation capabilities. This includes invoice distribution, sending out payment reminders, allocating payments, linking and retrieving documentation, and tracking collections within the AR context. What do they all have in common? The fact is that they all significantly drain capacity and generally require the bulk part of your human resources to manage. Although these tasks are significant to the AR process, manual processes are far from the best way to get them done. Ergo, the fact that these tasks are siloed, labor-intensive, and time-consuming leads to some of the most common challenges within Accounts Receivables, namely:

  • Errors and Inaccuracies
  • Delayed Payments
  • Difficulty in Tracking Payments
  • Customer Disputes and Inquiries
  • Lack of Insights and Reporting

To summarise, the first thing AR teams wish you knew is that there's a need for change.

What's costing them is costing the business.

Manual processes aren't just hurting capacity and productivity; it's hurting the overall business. The issue becomes more prevalent when exploring the hidden costs of manual processes. Without the right AR automation tool, relying solely on PDFs, emails, and spreadsheets leads to a higher DSO, suboptimal customer experience, poor resource allocation, and opportunity costs. For instance, a recent piece by The Raconteur shows that up to 56.4 million hours are spent chasing overdue payments each year. With AR automation, this time could be better spent on higher-value finance tasks related to data analysis, financial reporting, building CX, or scaling your business, leading to increased efficiency and profitability.

They're concerned about your compliance.

Manual processes don't account for a changing regulatory landscape, data breaches, and information security concerns. So, what does? As teams are stretched as-is, there is little to no time to ensure that they comply with the most recent regulatory requirements. With SARS planning to introduce real-time VAT reporting, manual billing and data management processes are not going to cut it. Such systems will come under significant strain when real-time reporting comes into effect unless needed changes are made to accommodate this upcoming legislation.

Moreover, as manual processes lack real-time data and are prone to human error, it's only a matter of time before a security breach occurs. Hence, the upcoming mandatory shift towards e-invoicing and safeguarding data in a growing threat landscape.

It's time for a change of pace: Cue AR automation.

The solve? AR automation software. However, the switch to AR automation doesn't have to put a pause on productivity. In fact, the onboarding process can be completed in less than 45 minutes.

Cue System1A.

The only thing scarier than not having your finger on the pulse of your team is letting competitors pass you by (and not knowing what to do about it). At System1A, we provide one application to manage all your company's accounts, communications, deliveries, interactions, payments, receipts, and reporting. Our AR automation software streamlines your processes, reduces errors, and improves cash flow, all while freeing up your team's time for more strategic work.

You don't have to rely on manual processes to get the job done. You've hired an exceptional team, and they are your most valuable asset. We help free them from time-consuming tasks so they can focus on driving strategic and purpose-driven work instead.

Watch our overview video here.

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