In the manufacturing industry, you often have many customers with many invoices to send out. In fact, we’ve seen manufacturing companies with over 100 invoices to send just for one customers. If those invoices are being sent out manually, either by printing and mailing or email, that could take hours. How do you expect to make follow up phone calls or spend time collecting from customers if you can barely get their invoices out on time? Automated accounts receivable software eliminates these manual tasks so you can focus on the most important aspect: collecting payments.
Below are four of the best features of automated accounts receivable software for manufacturers.
- Supporting Documents
Often times in manufacturing there are a few supporting documents that need to be sent with the invoice before a customer can remit payment, such as a bill of lading or work orders. If these documents do not end up with the invoice, you end up with a delay on payment. Automated accounts receivable software will ensure that all invoices are sent with the supporting documents needed. Any important documents stored in your ERP system can be pulled into the system to be automatically send with any scheduled emails.
- Online Bill Pay
If you’re not allowing customers to pay online you’re probably spending half your time waiting on checks to arrive in the mail and the other half writing down customer credit cards over the phone to be keyed in later. This is a huge waste of time. With online bill pay through an automated accounts receivable software, customers can receive an email with a hyperlink taking them to a secure payment portal where they can self-serve their payments.
- Credit Management
As a manufacturing company, it is likely that you have quite a few customers that you are extending credit to. Choosing the right customers and ensuring they don’t slip on payments is extremely difficult to constantly keep track of. With automated accounts receivable software, customer credit scores can be stored in the system and you can be alerted when any changes to their credit report occur. This will help you to either scale back with some customers or expand credit with those customers who consistently are paying on time.
- Dispute Management
One of the greatest hurdles to getting paid on time is dealing with invoice disputes. The longer an invoice sits in dispute, the more likely you won’t collect on the full amount. With automated accounts receivable software, customers can chat with you directly to get the invoice issue solved before you miss out on any cash. Collection representatives can escalate any issues to account managers and credit managers when needed and you can keep track common invoice reasons to attempt to resolve any common issues.
With so many invoices a month to deal with manually, it is likely difficult to get any other work done. Using an automated accounts receivable software takes most of the manual work out of invoicing customers. All that is left is to call up those who are paying late and ensure they send payment asap.