Too Many Invoices? Obstacles That Keep You From Benefiting From Rapid Growth

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Exponential growth and an increase in revenue can present many challenges, especially for accounts receivable. Managing a growing wave of invoices can create backlogs that delay cash flow.

It’s common to assume the biggest obstacle is due to lack of human resources. However, adding new hires to a manual AR process may not help collections keep pace with the scaling business. The best strategy to drive cash inflow is with customized, automated collection campaigns, predictive analytic tools, and enhanced workflows.

Here’s where you may be losing time and money during a period of rapid growth:

  • Too many systems: Switching between email, Excel, your ERP and CRM, and other systems wastes time for AR team members, which limits the number of invoices they can process.
  • Excessive copying and pasting: Does your billing and collections staff have to manually take information from one system to another to complete their AR tasks? This takes time and can lead to costly errors.
  • Manual prioritization of tasks: For AR managers and collections reps, manually scouring aging reports to identify top collections priorities squanders time that’s better used to conduct customer outreach or manage dunning campaigns — activities that help bring in cash quickly.
  • Treating every invoice the same: If you forego manual prioritization and apply the same effort to every invoice, no matter the dollar amount or the importance of the customer relationship, your team is losing valuable time and efficiency, especially for a lean AR team.
  • Multiple currency reconciliation: Companies with customers across the globe work with many different currencies and must reconcile them to their reporting currency. Manually tackling this task is time-consuming and can pull resources away from collections. The more invoices you have, the more detrimental the impact.
  • Reactive dunning processes: Collections will always lag behind the growth curve if your dunning efforts are slow and cumbersome. It’s likely that you’re chasing late payments rather than using proactive measures to reduce aging.

Automation Can Break Down These Obstacles

Implementing an automated AR platform like Tesorio helps increase the productivity and capacity of your billing and collections teams, enabling them to handle a higher volume of invoices as your business scales.

You’ll spend the majority of your time in one system integrated with your ERP and CRM, where data flows seamlessly between them. The dashboard makes it easy for an AR manager to track and prioritize team members’ collections efforts by dollar, due date, or customer.

Meanwhile, the tagging feature allows everyone on the team to make notes and easily include or exclude customers from dunning campaigns, which can be customized for whatever proactive cadence suits your business needs. You can also automatically convert outstanding invoices and incoming receipts from more than 130 currencies to your reporting currency so you know the exact total dollar amount in real-time.

By implementing an accounts receivable automation tool, you can:

  • Reduce DSO by 30%
  • Increase you daily collections outreach
  • Eliminate your backlog of aging invoices
  • 3x increase of collections productivity

Ready to automate your AR processes? Request a Tesorio demo today.