Invoicing customers has been proven to be a frustrating task for business owners. This is further verified by a recent study conducted by PYMNTS.Com in conjunction with Sage, a leading provider of ERP and accounting software. The study “SMB Technology Adoption” surveyed 700 businesses across America in both B2B and B2C, and the results were telling about small businesses and their lack of technology usage.
A large majority of business owners, around 61 percent, found it frustrating that they weren’t getting paid on time, as it is for most businesses. Further, 22 percent found it frustrating that they can’t reconcile their accounts receivable. However, this is where the results show that owners are not utilizing technology to their advantage.
Only 20 percent of the business owners said their process for issuing invoices to customers is completely automated and only 6 percent said that their process for allowing customers to pay directly from their invoice is automated. With all the worry and frustration around their accounts receivable and invoicing, you would think these businesses would have considered putting it all on automation.
If you’re a company without automation and frustration around invoicing and getting paid, then consider these accounts receivable software benefits. It may take a lot of weight off your shoulders.
- Getting Paid Faster
The number one concern of 700 business owners is eliminated with an accounts receivable software. Studies show that companies automating their accounts receivable get paid 20 percent faster.
Accounts receivable software cuts down on the time it takes to send invoices dramatically. Invoices can automatically be sent out on the day of your choosing. You won’t need to sit down and organize who needs to receive an invoice and write out the invoice, because the templates will already be created.
- Increased Insight
An accounts receivable software will automatically alert you to who hasn’t paid, and how many days late they are. This is will help you to organize your accounts receivable, which can quell fears around inability to reconcile the process.
- Better Communication
Every time you reach out to a customer, an accounts receivable software can log calls and emails. One task that sucks up the most time in handling accounts receivable is prioritizing and planning calls. Accounts receivable software reduces that time by 9 percent, which can be spent doing more important tasks elsewhere.
- Online Payment Portal
Businesses in the study are concerned with not getting paid on time but only 6 percent of them were offering an automated way for customers to pay through their invoice! An accounts receivable software offers an online payment portal so customers can easily click and pay.
Fears in small business shouldn’t exist around not getting paid on time and the accounts receivable process. There are so many technologies that exist that can do the manual tasks for you, which will allow you more time to work on more strategic decisions and goals.