Improving Accounts Receivable with Automated Email

Sending thousands of manual emails a year to customers just doesn’t make sense. It would be practically impossible to take on new customers and ensure that they will pay on their accounts if you only have a small team in the accounts receivable department trying to keep up with daily email messaging and phone calls, unless these emails became automated. Throughout this blog posts, we’ve explained how automated email works, how it can save you time and how it can help improve customer service. In this blog post, we’re going to take a look at how automated email can improve your overall accounts receivable performance.

The benefits of using automated email to save time can be pretty obvious. You’re completely eliminating an entire block of tasks you had to do every day, now they are just being completed automatically. However, how that time savings can give way to an overall improvement in accounts receivable isn’t always clear. Below are some of the ways your collection process will improve by using automated email.

  • Supporting Document Attachment
    How often when you’re sending out an email do you receive a notification that you forgot to add the attachments? If that handy notification doesn’t pop up, how often do realize after sending an email you never attached what you meant to? A study conducted by CFO.com shows that about half of invoice disputes are caused by missing purchase orders, a common document required by businesses to pay an invoice. With auto-email these purchase orders can automatically be attached to an invoice when it is sent out to customers in collection letters and payment reminders, so an important supporting document crucial for payment is never forgotten.
  • Reminders and Collection Emails
    In many businesses that are sending manual collection emails, getting around to sending a 2nd, 3rd or 4th reminder simply isn’t plausible. It’s hard enough to get the original invoices to everyone who needs them, let alone send out additional collection letters and reminders. However, sending out additional reminders increases your chances of collecting the invoice on time. By automating the collection email process, you accounts receivable team has the ability to send out additional reminders without adding any additional time to their daily collection activities.
  • Email Statistics
    Some automated email options within an accounts receivable automation application give you the ability to track your email statistics. For example, what was your open rate and who opened the email? If a late-paying customer claims that they never received the invoice or email, you can have proof of whether they had actually opened it or not, giving you leverage to get the invoice paid on time. Email statistics can also provide you with click through rates. If you gave customers an online bill pay option through a link in the email, you can see who has been taking advantage using the link and have a known statistic of customers using it.

Using automated email for your accounts receivable process not only saves time and improves your customer services, but improves your overall success in accounts receivable. Automated email offers actual statistics on your customer’s actions with the email, you will never forget to attach important documents that directly impact your ability to get paid and you simply have more time to do more with your collections efforts.

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