One of the biggest mistakes small business owners make is not closely monitoring receivables and jumping on them when they go past due. It’s understandable. Most of us are more comfortable doing anything else -- even cleaning the breakroom -- than collecting on accounts. And yet, we all need to get paid.
Updating your receivables process is a smart investment of time and resources that will yield a strong return. Here are 5 benefits of an automated accounts receivable system:
The first step to getting paid faster is avoiding bottlenecks and other issues that cause delays. An automated AR system enables you to quickly create, track, monitor, and record every step of the process from quoting to closing out. Documents can be pre-formatted and emailed automatically, including recurring invoices and regular payment reminders.
Digitizing AR reduces the amount of time employees have to spend on billing and collecting, saves on postage and printing, reduces bookkeeping costs, and frees you up to work on more strategic activities. Ease of use is a key consideration when evaluating options; you won’t realize time-savings if the solution is too difficult for you or your customer to use.
The more flexible payment options you can provide to your customers to pay you with, the easier it will be to get paid. Most automated systems allow you to set up credit card and wire transfer (ACH) payments so customers have more ways to pay. You can even add a “pay now” button to your invoices to invite customers to take care of their bills on the spot.
Everyone appreciates relevant and timely information about their orders. Set up your system to automate shipment confirmations and payment acknowledgments, both easy-to-execute tactics that influence customer satisfaction and encourage loyalty.
Automated AR systems give you instant access to real-time data on open invoices, receivables aging (how long the invoice has been out), and customer payment trends. These insights help you forecast cash flow, plan capital expenditures or materials purchases, and identify habitually slow payers for potential intervention. Knowledge is power.
Xometry Pay is an automated receivables solution specifically designed to give manufacturing and machine shops like yours the power to improve internal processes, increase productivity, and get paid faster. Xometry Pay provides a whole suite of tools that gives your shop financial security with guaranteed payments on all of your work while offering your customers more flexibility in how they pay you, helping improve receivables processing in three ways:
Start issuing purchase orders on your terms and streamline your accounts receivables process with Xometry Pay!