From eliminating redundant tasks and busywork to streamlining processes to improving forecasting across the organization, enterprise resource planning (ERP) solutions provide companies with a wealth of benefits. ERP systems store all sorts of data that’s relevant throughout the organization in one central repository, making it easier for business units to find the information they need.
In addition to being a resource management system, ERP systems typically manage all your accounting transactions in one place. Generally speaking, accounting software, as it is traditionally known, is a subset of any ERP bundle.
While ERP suites take care of basic accounting functions, an AR automation solution (like YayPay) integrated with your ERP can take a finance team to new heights with automation, machine learning, and powerful prediction capabilities.
It turns out that automated AR systems and leading ERP suites are a match made in heaven for organizations wishing to take their accounting departments to the next level.
- Automatically email invoices. AR professionals no longer have to make time to send emails directly to customers asking for payments. They don’t have to follow up at regular intervals, either. All of that is taken care of by the AR automation solution. This saves accounting teams a ton of time that can then be invested in other revenue-generating areas of operations.
- Manage and track collections efforts. AR teams are automatically notified when payments are late and what escalation steps, if any, are needed. This makes their jobs easier because they don’t have to think as much about late payments or dig through a ton of data. Instead, they’re automatically reminded at the most appropriate times about what the next steps are.
- Centralize all relevant information in one location. An automated AR solution is collaborative by design and provides both accounting and sales teams with a single interface that gives them all the relevant financial data they need. In some instances, ERP systems have per-user licensing costs. Providing visibility to people in sales, for example, might be expensive, so organizations decide to export the data and give it to their sales teams in Excel instead of signing up for additional licenses. Such an approach is inefficient—but it can be avoided by integrating an automated AR platform with your ERP.
What does this look in the real world?
Let’s say an organization is using an ERP system to create an invoice. Once that happens, someone on the AR team then reaches out to the customer and lets them know they have an outstanding invoice.
With an automated AR solution integrated with your ERP, most of that tedious follow-up is done automatically.
Using the collection workflow of an automated AR solution allows AR departments to determine when to automatically send out invoices and follow up notifications. Additionally, at any step of the collection workflow, a user can setup an automated alert. For example, if a customer is 60 days late on a payment, an automated alert can be sent to sales or customer success, so they can get involved in the process.
The end result? Time saved and payments made easier.
Additionally, this automation ensures that AR professionals don’t forget to take care of recurring tasks. Emails are sent automatically and tasks are auto-created so they know exactly when they need to call customers. The guesswork is removed from the equation.
Enhancing your ERP with an automated AR solution will streamline your organization’s traditional invoicing processes and accelerate your collections. With more visibility into your invoices—and automatic reminders about where payments stand at any given point in time—your AR team won’t have to manually send a ton of emails or track people down on the phone. Instead, they will be able to collaborate with customers and teammates seamlessly and in real time, making life easier for everyone involved.
To learn more about how your organization can benefit from AR and back-office automation, schedule a demo today.