Late payments and unpaid invoices are a growing concern for every business and, unfortunately for some businesses, a significant problem, affecting cash flow and, ultimately, everyday business operations.
Often, invoices fall overdue for numerous reasons; however, research has shown that a large percentage of these overdue invoices have fallen into the late payment trap, as they have simply been “forgotten.”
This makes sending reminder emails, statements, and follow-ups an essential part of the collection process.
(Make sure to check out our service page to learn more about our collections process and the business support we provide on collecting overdue invoices).
This is where automation can and should be introduced.
Automating invoicing and those all-important follow-up reminders can help you recover payments much faster, saving you considerable time and resources.
In this post, we look at automation, what it means for business, and the benefits it can provide.
Automated Invoice Processing
Chasing overdue invoices isn’t always a job that your accounts team loves, but it is a job that is necessary.
We understand that chasing overdue invoices and late payments takes time and resources, and in some cases, it can negatively affect your relationship with your customer.
The good news is there is now a more efficient way to chase down late payments and, in some cases, eradicate this altogether.
A form of digital communication that helps to prompt commercial invoice collection.
But why make the move to automation? What are the key benefits of automating invoice processing, and will it really help you to avoid late payment issues?
Automated Invoice Processing Benefits
It makes your collection process smoother
This can greatly benefit customers as you make the invoice and payment experience more streamlined and efficient by scheduling trigger notifications at specific points throughout your collection process timescales.
Helping customers stay on top of their accounts more efficiently, payments can then be scheduled for payment faster and tracked and monitored against their systems.
You can also include links to allow payments to be made directly, making it faster and more convenient for your customers to pay at a time that suits them.
Frees up resources
By automating those repetitive tasks that your finance team usually carries out, you now give your team back the element of time, allowing them to focus on other revenue-generating business areas.
Reminder campaigns can now be set up, tracked, and monitored by your team, allowing you to set the frequency of these reminders as you look to build a relationship with your customers.
Get paid faster
By including payment links and a range of ways to pay, you can make it quicker for customers to pay their invoices or schedule invoices for payment before the due date.
Allowing users the option to pay through their preferred payment method will always reap rewards and avoid commercial unpaid invoices popping up on the account as you remove what could potentially be seen as barriers to payment.
Teams are more productive
No longer are finance teams bogged down with chase emails, letter templates, and more. With systems in place and set up to carry out this work for you, your teams can now focus on other areas, making them more productive and motivated.
With a reduction in processing time of up to 70%, removing mundane and repetitive tasks allows you to boost productivity, morale and improve motivation.
Can personalise communications
Emails, reminders, chase letters, etc don’t have to be cold and uninviting, with the right automation software you have the opportunity to personalise your communications to suit your customer base, reaching clients through their preferred method of communication.
From friendly nudges to account balance updates and follow-ups on overdue invoices, automation can provide you with it all and take these tasks away from your finance team.
This level of personalisation does achieve better results as customers respond better to personalisation, making it a win-win for your accounts.
Provides additional security
Online and working online now must be 100% secure at all times, and automation and making digital payments is no exception.
Collection software requires you and your customers to validate your identity, and this level of authentication makes people feel safer making payments online and avoids emails and invoices being mistaken for spam.
Providing you and your customers with confidence that everything is secure and reducing the chance of human error from occurring is a significant benefit.
Gather insight and data
Collection software can provide valuable financial and payment insight that allows you to measure success.
For example, what areas of your commercial invoice collection process are performing well? Where could improvements be made?
This insight helps to determine when people pay, their preferred method of communication, how frequently they like to be reached, etc.
With large volumes of invoices issued regularly, your collection process can soon become incredibly complex. When this process is managed manually, there is considerable room for human error.
From inputting errors, assigning to wrong accounts, miscalculations, and more, introducing automation can remove all of these problem areas immediately.
Commercial Invoice Collection
Collecting overdue invoices and chasing late payments is not everyone’s forte. With automation, you can now improve customer satisfaction, get paid faster, and increase your ROI.
At Direct Route, we work hard to support our commercial customers in collecting the money they’re owed.