If not for incomes and returns, why do you think the world does business? Altruism and charity are fine but you can’t go on endlessly unless there is a more concrete and immediate need. And that, is income. If it doesn’t come in at all or comes after unexpected lags, the purpose of the enterprise big or small gets defeated. With competition increasing, most enterprise irrespective of their sizes and complexity are more interested in getting more enterprises on board as clients instead of thinking about actual returns on the ground. The latter thus invariably gets a step-motherly treatment and falls into the lap of the finance and sales department.
One way of streamlining things and making the most out of receivables is by employing accounts receivable management software which are said to have quite a few USPs and advantages, including the following.
– Improves cash position & therefrom, bottom-lines
A bank account full of liquid cash is the stuff of dreams for most business which can be deployed further more efficiently to earn higher returns- provided that’s a regular and unerring occurrence. In most business, sadly this isn’t the case. In fact, one of the reasons behind the ever-increasing cost operations is the need to procure costly finances due to various reasons including a bad system of monitoring receivables. Using an accounts receivable software for business can help organizations map their receivables, reduce dependence on external and expensive funding, and plan for growth-enhancing activities.
– Forecast your cash position and plan ahead
Wouldn’t it be nice if you knew exactly how much money comes from where, and in fact it does? In fact, among all the pain-points that organizations go through, one is that most don’t have a clue as to what comes from where and in what quantities. This means the business invariably either has to cut activities and concentrate on that which gets them the most cash or have to take loans from outside to create a level playing field that takes care of things when accruals don’t arrive on time. All this can be obviated with the help of the right Accounts Receivable Management Software which not only informs about how much comes from where but also the condition of the buyers and what can be expected from them. With the right information at the right time, a lot can be accomplished, especially when it’s about growth.
– Pay in time and get healthy discounts which can be passed on to clients
Pay-outs are the other side of the monetary coin. If you get on time, you pay on time. And when you pay on time, you entitle yourself to healthy discounts from sellers that can be passed as lower prices to your clients. Besides reducing their pay-outs, you endear clients by giving them the best deal in the market. All this is a real possibility where you use the best accounts receivable management software which takes care of all your money-receivable related issues.
– Improve CRM by communicating the right thing at the right time in the right manner
What’s better, reminding clients of their dues or informing them of the discounts you propose to give them? Obviously the latter which is a complete possibility where one uses the best accounts receivable software which besides informing, helps send them information in the most correct and accurate manner to clients which shall remain beyond mistakes and simple to grasp.
– Reduce cost of finance
Where the managers in an organization know in exact terms their accounts receivables, they would be much less inclined to take costly loans and tiding-over measures. Accounts receivable software gives an organization the assurance of time and gaps after which money can be expected. With that kind of information, most organizations can reduce their debts and manage their monies through their own resources.
– Increase sales efficiency
A measure of sales’ efficiency is when receivable come in on time. If they don’t there’s much to be desired. One way of increasing efficiency and growing the business is to employ an efficient accounts receivable software that informs well in time the dues and from which party, as also who is likely to default. The last is very helpful in planning for contingencies which ought to be second nature in the field of business and entrepreneurship.
– Minimise the risk of bad-debts
Debts don’t turn bad overnight. They do so over a period of time, and also when the creditor does not care to take the debtor to task for defaulting. In most cases, it is seen that creditors themselves run slack due to the lack of information when it is most needed. One way of remaining perennially on top of mounting debts and minimizing the risk of debts turning bad is by getting the right information on time and chasing debtors to fulfil their dues- something that can take place only in the presence in an organization of the right kind of accounts receivable management software.