Did you know that up to 60% of businesses are wasting 14+ hours a week on administrative tasks? For today’s leaders, staying ahead means harnessing the power of technology to streamline “busy work” and clear the way for other pressing priorities. That’s why Accounts Receivable automation is such a game-changer for finance and accounting teams who need to modernize their operations –quickly.
Gone are the days when manual processing and paper invoices dictated the pace of your business. With systems that support automated payments and invoicing, it’s possible to save 5 or more hours of time each week on Accounts Receivable processes. (In turn, that also makes it easier for your firm to maintain healthy cash flow.)
Top benefits of automating your A/R process:
- Stronger cash flow (and faster payments).
- Increased speed and efficiency.
- Reduction in human errors and inconsistencies.
- Better client experience.
- Cost savings for your firm.
- Data security and compliance improvements.
- More valuable financial insights.
What Is Accounts Receivable Automation?
“Accounts Receivable (A/R) automation” means any automation to help firms establish, collect, and manage payments from their clients. For true end-to-end A/R automation, you will need to review many different touchpoints along the client journey, including: engagement letters and proposals, invoice creation and delivery, offering payment options, tracking client payments, and any ongoing communication between clients and the firm.
What Are the Main Benefits of Automation?
Dun & Bradstreet’s Accounts Receivable Industry Report shows that 23% of business services clients pay 30-90 days late or more, with 5.6% paying over 91+ days late.
By automating essential but tedious A/R tasks, firms can significantly reduce the amount of manual work they perform and free staff up for more meaningful projects. But the biggest long-term benefit of Accounts Receivable automation is optimized cash flow management, which gives firms more financial stability and the ability to invest in revenue-driving initiatives.
This is especially true for accounting, legal, and professional service firms, given the higher-than-average DSO (Days Sales Outstanding) these businesses typically tend to see with their clients. In the past, Accounts Receivable tasks have often included manual data entry, paper invoicing, and other labor-intensive activities – but all that manual effort still doesn’t result in faster payments.
In fact, Dun & Bradstreet’s Accounts Receivable Industry Report suggests that for accounting and legal practitioners, as many as 23% of clients will pay 30-90 days late or more, with 5.6% paying over 91+ days late.
Without Accounts Receivable automation, your firm will likely deal with these ongoing challenges:
- Human error and inconsistencies in data
- Delayed payments
- Limited access to working capital
- Lack of real-time visibility into financial health
- Low employee morale, due to tedious manual work
- No time or focus for the high-value projects
Want to learn more about common A/R and invoicing challenges for accounting firms? Check out our A/R and Invoicing Report here.
Enhanced Efficiency with Accounts Receivable Automation
With the advent of A/R automation, what were once cumbersome admin tasks can now be transformed into low effort, “push a button” processes. Plus: you get more real-time insights by integrating A/R and payment processes with all the other tech in your business.
Top ways that automation can enhance efficiency for your A/R team:
- Allow them to review client accounts all at once, rather than one-by-one.
- Send invoices electronically to customers in batches.
- Make it simple for clients to pay invoices right from their email inbox.
- Provide accurate tracking of the client’s payment status.
- Allow them to set up automated payment reminders.
- Create clear collections protocols that reduce the headache (and awkwardness) of collecting on past-due accounts.
How Does A/R Automation Lead to More Efficient Billing?
Automated systems not only enhance efficiency, but they ensure clients are regularly reminded about their projects and balances with you (keeping you top-of-mind for new services, too). Just by digitizing and centralizing the work of Accounts Receivable management, your firm can eliminate many “busy work” tasks related to manual processing and client follow-up.
Over time, the entire process of billing clients will be integrated more naturally into the client journey. In short: Automation makes it more likely that clients will pay on time in the first place, and it also gives you better options for collecting if they don’t. Digital payment options make it more convenient for clients to pay, reducing even more friction in the billing cycle.
Improving Cash Flow Management
How quickly you can invoice clients and manage outstanding balances will obviously have an influence on your firm’s cash flow and overall financial health. That’s why Accounts Receivable automation plays such a crucial role in cash flow management.
Here are 3 ways that A/R automation can directly improve cash flow at your firm:
- Reduce the lag time between work and payment. With faster payment processing and effective automation tools, you can reduce your Days Sales Outstanding or DSO. (For more insight on how to reduce DSO, read this blog post). This all but guarantees stronger cash flow and allows your firm to reinvest funds into the business.
- Provide real-time visibility and better forecasting. Any worthwhile A/R automation will allow you to see where clients stand in your systems, monitor outstanding invoices, and take proactive measures to collect payment. That allows for better financial planning and forecasting, ultimately leading to stronger cash flow for the firm.
- Strengthen customer relationships. When you can provide a seamless, beautiful payment experience and maintain regular communication with clients, they will appreciate the value of your firm and services more than they would otherwise. It also encourages them to pay faster. Lastly: Prompt, transparent invoicing processes will help to build trust and loyalty, potentially bringing more business your way.
Strengthening Customer Relationships
How Automated Processes Lead to Better Client Experiences
We’ve already touched on how automation can strengthen your client relationships. But there are even more client experience benefits with Accounts Receivable automation. For one, it removes the client’s frustration when dealing with incorrect or delayed bills. Clients can also easily access their billing information through user-friendly portals, which simplifies the payment process.
Here are the main reasons clients love firms with effective A/R automation:
- Eliminates frustrating manual errors and inconsistencies
- Ensures that invoices are delivered promptly to them
- Makes payment accessible and convenient (no need to drag out the checkbook!)
- Reduces the time clients need to spend resolving discrepancies or asking questions
- Offers transparency into pricing and real-time status updates
Tailoring Your Billing Communication to Customer Needs
One of the key advantages of A/R automation is its ability to personalize billing and communication, without taking up additional time for the team. Automated systems can often be configured to send invoices in multiple formats— whether that means by email or in dedicated client portals—so that the experience is tailored to the needs of your client base.
Additionally, automation makes it simple to increase your email communications, allowing firms to send more reminders, updates, and notifications about payments or outstanding invoices. This not only ensures faster payment, but also strengthens the client relationship by demonstrating a commitment to meet their needs.
Data Security and Compliance in Accounts Receivable Automation
Data security and compliance are paramount for any automation plan. First: ensuring data protection and adhering to compliance standards are essential for maintaining trust and avoiding legal consequences.
Second: secure automation tools can help you with safeguarding financial data. These tools should implement advanced security features such as end-to-end encryption, multi-factor authentication, and real-time monitoring to detect and prevent unauthorized access. By leveraging automation, firms can further protect financial transactions and customer information.
QuickFee’s Approach to A/R Automation
Introducing an Accounts Receivable automation tool like QuickFee Connect can be a powerful solution to the challenges of time-consuming invoice delivery, payment chasing, and reconciliation.
Here’s a good example: Pease Bell CPAs, a rapidly expanding mid-size accounting firm, saw a significant improvement in their Accounts Receivable processes after introducing Quick Fee Connect. Prior to implementation, the firm grappled with high aging Accounts Receivable. The team dedicated substantial time to pursuing payments and manually inputting everything back into their Wolters Kluwer CCH Axcess Practice system.
Before QuickFee Connect, our invoicing and payment collection process used to take us all month. Now it’s probably a 2-week process getting the payments in… We can send out invoices with just a click of a button and often receive payments within the next day. There’s been a 65% improvement in our Accounts Receivables as well. I have been here for 25 years and I have to say there’s been a huge change in our receivables and collections since using QuickFee. -Jeannine Hosta, Billing Supervisor at Pease Bell CPAs
Quick Fee Connect transformed their operations. Invoice processing time was halved, from a month to just two weeks. Payments began arriving quicker, occasionally even the following day, and time devoted to A/R collections was cut by approximately 65%.
Key features of QuickFee Connect:
- Integrates with your practice management system: This A/R automation and payment platform integrates with leading practice management systems from IRIS, Wolters Kluwer, Thomson Reuters, and more (with new integrations coming out all the time).
- Automates invoice delivery and payment reminders: Set up regular reminders for clients to pay. Every email reminder gives clients a personalized payment link, allowing them to pay any invoices upfront and in full.
- Email management and customization: Exclusive to QuickFee, you can now use our email management feature to see exactly which invoice emails were sent, received, opened, or bounced. You can also customize your email templates for sending invoices and reminders, with the ability to set specific triggers for these notifications.
- Straightforward implementation: The implementation process for QuickFee Connect involves a kickoff call, configuration, testing, and training, and can often be completed after 2 weeks (depending on your firm’s needs).
- Affordable pricing: QuickFee Connect has a one-time flat implementation fee of $1995 and a monthly fee of $499, which makes it simple to plan for your A/R automation upgrade. The system is designed to help accounting firms reduce their Accounts Receivable, benefit their business, simplify processes, and save on costs.
Click here to watch our on-demand webinar with Pease Bell CPAs. In this session, the Pease Bell billing team shares their experience using QuickFee Connect.
Reap the Benefits of Accounts Receivable Automation
By leaning on the benefits of A/R automation, firms can boost operational efficiency, manage financial risks more effectively, and drive more sustainable growth through data-driven strategies. At QuickFee, we continue to leverage these innovations to offer unparalleled financial solutions to our clients.
Want to see a 15-minute demo of the QuickFee platform? Contact us here to begin your A/R automation journey!
