Should your business cash collecting be evolving and changing with the technology? In today’s world when everything is becoming virtual overnight, cash collecting has been moving fast towards full automation and paperless existence.
Research by leading IT analysts has found that companies with the fastest-growing profits in their industry sectors are the ones that are changing their document processes and automating them. Businesses with effective document processes in their billings and cash collecting are more likely to experience profit growth and shortening of their cash payment cycle. Unfortunately, for many businesses invoicing and cash collecting still involves manual processes. These inefficient manual steps limit the business ability to achieve objectives such as reducing cash payment cycle and increasing profitability.
Still, many other businesses have now been doing their cash collecting using the latest, fully automated document management technologies, mobile SMS messaging, e-mailing and electronic voicemail delivering. For the same reasons, many businesses have already moved to electronic invoicing and cash collecting.
This is not only a step forward in decreasing the global carbon footprint, electronic invoicing has lots of other added advantages over the standard invoicing. These are 10 big reasons why electronic invoicing and cash collecting vs standard methods always wins:
- Web based technology is inexpensive and easy to install.
- Substantial business cost reduction (E-billing results in substantial cost savings as no paper printing, mailing and posting of invoices is required).
- Instant delivery of invoices (your bills/invoices are being delivered instantly and you can also trace the delivery/reading status).
- Shortening of transaction cycles (automation shortens all steps in credit control, from invoicing to collecting).
- Invoices could be resent at any time (once in the system and sent to the clients, invoices could be resent at a click of the button many times if required).
- No filing is required (your business will save on human resources as the invoicing could be done with less staff, with no filing required).
- Easy access to invoices (invoices are accessed at the press of the button at any time).
- Significant reduction in Days Past Due (DPD is a measure of the average time to collect receivables. An automated billing system is easily configured to send regular reminders to unpaid bills. This regularity will significantly reduce the payment cycle).
- Anyone in your business could be trained to cash collect (using an automated system is simple and easy to use with little training).
- Increased productivity and profitability (with fewer manual tasks in accounts receivable, more could be achieved with less people).
As you can see above, automated document management and cash collection has the potential to deliver significant benefits as a result of eliminating document process inefficiencies within cash collection.