Overdue invoices can be crippling to a business’s cash flow. Not only is it difficult to continue operating when payments are outstanding, but chasing up debtors takes time and often involves several manual and disjointed processes. And if you’re one of the many Australian businesses with almost a third of their invoices outstanding, addressing all of your debtors can feel like a herculean task.
While some businesses may opt to involve a debt collector to get paid, it can be a move that damages customer relationships. So, how can your business address late payments in an efficient and customer-friendly way? It’s easy if you employ the right technology.
Keep reading to learn how you can make chasing late payments streamlined and effective while setting up the systems to stop any future late payments in their tracks.
Automating your accounts receivable process makes debt collection a breeze
Before outlining how you can spend less time chasing up late payments, it’s important to note that not all debtors are created equal. Even some of your best customers may pay late, sometimes due to lack of funds and other times, because life gets busy and they experience administrative backlogs or errors at their end. In contrast, there are also those customers who consistently pay late.
With a reliable accounts receivable management system, you can address the administrative errors that cause invoices to get missed while giving problem debtors a dedicated portal to manage their payments.
What are the key benefits of a reliable accounts receivable management system?
Accounts Receivable management solutions like Spenda provide a range of features that help suppliers and customers to improve their communication, collaboration and cash flow management. Your customers will have more flexibility over how and when they pay. Further, you’ll be able to turn your accounts receivables into cash faster and have stronger cash flow compared to chasing late payments or manually arranging a payment plan with your customer.
Some key features of Spenda’s accounts receivable management solution include:
|Pay one, multiple or all invoices||A dedicated portal that gives customers access to an intuitive interface to track, group, and batch pay outstanding invoices. You can also set up automated invoice reminders to encourage customers to access the portal and pay their invoices even if they don’t currently have the funds available (see payment options below).|
|Flexible payment options||With a range of payment options, you’ll enjoy the added security and stronger cash flow of giving customers several ways to pay even if they don’t have the cash. These payment options include bank transfer, credit card payments and access to pay later options. Customers will also be able to schedule how and when they pay, so you know exactly when to expect payment. This also allows you to visualise your cash flow in real-time, so you always know how your business’s finances are tracking.|
|Real-time integration||Integration with your existing accounting software and ERP management system reduces data entry errors, eliminates manual processes and ensures transactions are updated at all times.|
|Automated reconciliation||With automatic reconciliation in a secure ledger and with debtor account access, both parties can easily access one single source of truth for all transactions. Each party’s ledger will be in sync at all times, whether you’re the supplier or buyer, which provides better collaboration and more accurate cash flow updates.|
Furthermore, your business will benefit from:
- Saving time by removing the need to manually chase late-paying customers.
- Reduced administrative pain points.
- Reduced data entry errors.
- Automated account reconciliation.
- Improved cash flow.
Unlock your business growth with connected applications
To drive further business growth, taking advantage of other connected applications such as automated purchasing, and smarter warehouse and inventory management can ensure your business is geared for growth in all areas. These tools will not only help you further unlock better cash flow management, but it will help your whole team to work smarter, leaving time for the work that matters most.
Get paid faster with Spenda
Spenda helps businesses get paid faster by improving how invoices are viewed and paid across B2B trade. Improving your payment and debtor management processes is key to ensuring your cash flow is consistently strong. Further, with options to use business finance to turn your invoices into cash faster, Spenda provides many avenues for businesses to boost their cash flow.
Click here to download our free guide on how to improve cash flow management across your business and learn how you can save time chasing late payments, get paid faster and reduce bad debts.
*This article is for general information purposes only. Consult a qualified financial advisor regarding any changes to or decisions about your business’s finances.