Digitizing Your Accounts Receivable Processes
AR collection has long been a challenge for operations. Almost everyone faces frequent hurdles when invoicing often due to slow and tedious distribution and failing to meet fully customer invoicing requirements and ultimately affecting cash flows.
Streamline your AR collections process, comply with local invoicing legislation, and distribute all your customer invoices/payments electronically – regardless of your customers’ digital capabilities. Set up rules according to each customer’s needs so you can automatically fulfil requirements while maintaining a fully digital workflow.
There are two parts to automating AR processes: (a) Invoice verification, approval and distribution; (b) AR receipts reconciliation
The first goal of Accounts Receivable Automation is to simply invoice approval, issuance and distribution. The solution is made possible by integrating your finance systems with invoice generation and disbursement platform with workflow enabled digital verification. You can fully digitalize your processing and distribution even if all your customers do not have the same digital capabilities. You issue and handle all invoices in the same way on your end, through your own finance system. Customer needs, whether it be to receive an e-invoice, a PDF or other image file by email, or a paper invoice by post, are saved and attended to by the automation platform. In addition to distribution, AR Automation platform can automatically apply content enrichments and digital signatures to meet the requirements of your customers.
The second goal of Accounts Receivable Automation is to reduce manual work with automated processing of receiving and reconciling payments efficiently. There are four common steps to get this done in order to deliver faster, more accurate processing – eliminating time consuming and error prone manual entry.
Capture remittance advice details line item data from electronic images such as (TIFF, JPG or PDF) from the respective bank
The electronically captured inputs such as Invoice Number, Invoice Amount, Date, etc.) are turned into a payment advice note in your financial system and is ready to link.
Automatically match the payment advice to the customers open items
Automatically match the payment to invoices; resulting in matches or no matches. Any variance such as overages or shortages may require approval before further posting