Top 4 Benefits Of Using Esker's Accounts Receivable Software

Utilised by companies to perform accounting and financial reporting, accounts receivable software are multi-faceted tools that encompass invoice processing, general ledger, payment processing, and many more workflow processes. Over the course of business and through countless transactions, businesses might suffer from financial inaccuracies due to human error. Consequently, they experience difficulty collecting receivables on time and have insufficient cash to cover day-to-day operating expenses. Accounts receivable payment software aims to circumvent that by reducing and minimising any margins for error in book-keeping, thereby ensuring that accounting and financial records are accurate.

The benefits of accounts receivable software are not only limited to ensuring accuracy, but also automating routine accounting tasks. In fact, here are the top four benefits that come with implementing accounts receivable automation software with a trusted and reliable partner like Esker.

1. Puts Your Business In A Better Position

At a glance, accounting books and records only serve to show how much is due to be paid and collected on specific dates. That makes it tedious to extrapolate information and data, which gives you a competitive edge and puts your business in a better position. By implementing automated accounts receivable software, businesses can generate statistical cash forecasts and provide a 360-degree overview of cash positions, based on each customer’s historical payment history and recurring receivables. Automated collection management also provides timely reminders by identifying invoices earlier in the process, and making it easier for customers to pay. With collection management as part of your accounts receivable software, you never have to worry about your cash position and operational runway anymore.

2. Strengthen Control Over Money

Building onto a strong cash position, the next book of automated accounts receivable software is the ability to effectively manage your working capital. Upon knowing the cash flows that are crucial for day-to-day operations, businesses with excess working capital can utilise that to extract further value from their equity. Critical business decisions that will generate growth such as equipment purchases, new employee hires, and even facility expansion, can only be done with a firm grasp of the financial situation obtained from accounts receivable software data. These choices surpass the stage of healthy daily operations and put businesses in a position where long-term growth becomes a viable target, as is necessary for additional revenue.

3. Reduce The Payment Cycle

Over the course of basic operations, those in the distribution or manufacturing industry inevitably suffer hard costs from inventory and labour required to fulfil orders. The same can be said for businesses in the service industry who allocate costly resources when rendering services for a new project. These costs, while unavoidable for revenue, can become a serious issue if payment from clients and customers are delayed. Through automation of accounts receivable software, businesses will no longer have to fret about late collections. Invoices can be sent automatically on the day of creation, and built-in customer portals featuring online payment methods allow customers to pay via credit card or instantaneously bank transfers.

4. Lowers Credit Risk

Customers defaulting on payments is a surefire way for any business’s profit and loss to land in the red. The question many might have in this scenario is how much credit is appropriate to extend to customers and clients? Needing to balance risk and returns, implementation of accounts receivable payment software will help answer this conundrum. Alongside credit management features, accounts receivable software allow businesses to store credit reports from third-party agencies and government bodies. By contrasting them with payment and account records, businesses can mitigate the risks of default and issue their own autonomous credit score to clients and customers. Businesses can also set up timely alerts to notify customers with excessive delays in payment, making accounts receivable a much smoother process.

Cash Application automation solutions allow businesses to quickly eliminate routine tasks in the cash allocation process by auto-matching all types of incoming payments to open invoices. Additionally, Esker’s recognition engine intelligently captures remittance data to provide 3-way matching and accurate reconciliation. As a result, team members can focus on exceptions, cash is allocated faster, and businesses benefit from optimised cash flow, receivables visibility and collections efficiency.

Enhance Your Business’s Accounts Receivables With Esker

Regardless of your technical expertise, geographical presence, or product diversity, Esker is here to deliver game-changing results to your clients and company. Contact us for a demo and find out how we can enhance your business’s accounts receivables with our software today.