Automating invoice delivery, collections and payment processing
Manual Accounts Receivable (AR) processes take a lot of time and can make it difficult to get a complete picture of finances.
By digitalising and automating the accounts receivable process, it's possible to regain visibility of finances whilst also reducing days sales outstanding (DSO) and improving the organisation's cash flow.
The Challenge
Inefficient AR processes aren't just bad for finance, they're bad for the company. Having large amounts of unallocated cash and open items reduces the visibility that the finance team has and makes the month-end a challenge.
The issues are only made worse by late payments, short payments, out-of-time discount claims, contract disputes, and unrecoverable debts.
These challenges create more work for the finance team and take up more time chasing up debts and collecting payments.
The Solution
Xenith's solution automates the delivery of both paper and electronic invoices to customers, so those that have not gone paperless will still be able to work with the new system, while those demanding e-invoices will be satisfied.
When order forms or purchase orders come into the finance team, the automated process captures the documents, validates the information and delivers it to the organisation's back-end systems.
As payments come into the organisation, they are automatically captured, identified and data is extracted from remittances, checks and other relevant documents. All the data and information is then validated, balancing remittance totals against check amounts and reconciling payments with open invoices.
Once all of this is done, accounting systems are automatically updated.
Benefits
Digitalising this key back-office process has a number of benefits and workflow improvements. Beyond removing the manual parts of the process, automating accounts receivable has the following benefits:
- Centralised information with easy access and audit trails.
- Reduced operating costs
- Reduced data entry errors
- Manage disputes and collections more efficiently with instant access to information in a central location
- Improved visibility
- Reduced Days Sales Outstanding (DSO)
- A reduction in the time taken to settle invoices by customers and improved compliance
Contact us to learn more about how to digitise and automate your accounts receivable processes and other financial processes.
