Consistent accounting operations are important for any business that wants to perfect the way it collects, processes, and manages payments. While implementing a reliable enterprise resource planning (ERP) system is a great start to an efficient accounting process, there are additional tools that can help.
Now more than ever, businesses are looking for automated systems to enhance their accounting process and overall infrastructure. With accounting software predicted to reach a value of over $19 billion by 2026, there will be an array of different tools and technology to choose from to improve the way you take payments. One of the easiest ways to streamline your receivable process is by implementing accounts receivable automation.
What is accounts receivable automation?
Accounts receivable (AR) is a fancy name that refers to the balance of money customers owe to a company for any goods or services previously used but not yet paid for. This is usually seen in the form of invoices, collections, installment payments, etc.
While ERPs are great for AR purposes like managing and recording payments, they typically require manual input, which can be extremely time-consuming. Luckily, AR automation streamlines this entire process.
AR automation works by automatically completing tasks like:
- Generating invoices based on your company’s data
- Reconciling payments in accounting/ERP systems
- Delivering invoices to customers
- Sending payment reminders to customers
Sage 100 is a perfect example of a reliable ERP system that can be paired with AR automation to enhance your accounting processes.
5 reasons to use AR automation in your Sage 100 ERP software
Sage 100 is an ERP system for small to midsize businesses. It’s popular in industries like manufacturing, construction, wholesale distribution, and more.
While there are many reasons to pair AR automation with your Sage 100 ERP software, some of the most notable benefits include:
- Quicker invoicing and collections
- Real-time analytics
- Reduced human error
- Recurring billing
- Time and money savings
1. Quicker invoicing and collections
With automated AR software for your Sage 100 ERP, gone are the days of manually inputting customer information. Now, your business can add automated systems that gather data to automatically create and deliver invoices to customers and eliminate the time-consuming back and forth communication that takes place when trying to collect a payment.
Pairing AR automation with your Sage 100 ERP will grant customers immediate access to invoices to submit their payments. This software also allows businesses to automatically send invoice emails, upcoming payment memos, and outstanding/past due reminders to customers directly from their Sage 100 system. All of these functions make it easier for customers to make online payments.
Businesses can add a credit card processing solution to sage 100 to automate the invoice and collection process and accept and manage payment types like credit cards, debit cards, and ACH payments directly inside Sage 100.
2. Real-time analytics
Real-time analytics is one of the main areas where businesses benefit from implementing AR automation into their Sage 100 ERP software.
When businesses implement AR automation into their Sage 100 accounting operations, this software continuously gathers data to generate real-time reports on customers, invoice history, payment details, and more. These analytics can help your team make more informed decisions regarding financial management, future growth projections, and initiatives to increase cash flow.
3. Reduced human error
Human error is one of the biggest causes of concern for many businesses, as it can lead to costly fines and even legal implications. Since the AR process deals with sensitive customer data, it can be especially stressful to manually input financial information.
Luckily, Sage 100 users can trust AR automation to take care of data entry and storage for a more accurate and efficient accounting operation. This software can reduce and eliminate incorrect client information, duplicated data, transposed digits, and more.
4. Recurring billing
Automating the AR process in your Sage 100 ERP software includes features like automatic payments and recurring billing. These features can help customers maintain a consistent payment schedule, rather than sporadically paying invoices.
With recurring billing, customers can set up their preferred payment method and choose the date of their liking for funds to be withdrawn from their account each month. Establishing a more routine collection process can alleviate the stress of late payments and ease the burden on businesses to track down outstanding invoices.
5. Time and money savings
Time and money are two of the most valuable assets when trying to maintain a reliable AR process. So when new automated software comes along that will conserve both of these resources, it’s a no-brainer for most businesses.
Adding AR automation to your Sage 100 ERP can save both time and money. The software controls a lot of the AR process, which allows employees to focus on high-priority projects instead of spending time on manual accounting tasks that can take hours on end.
Sage 100 users that integrate AR automation into their ERP system can also enhance savings by reducing or eliminating unpaid invoices and their associated debt, labor costs, and past overhead expenses from manual operations. Businesses can then allocate these finances to more revenue-generating initiatives.
In addition to the many benefits associated with automating your Sage 100 ERP system, this software saves businesses money by actively decreasing human error, which helps them avoid expensive damages and payouts.
Build a foolproof accounting process using AR automation with your Sage 100 ERP software
Integrating AR automation into your Sage 100 ERP software is a great way to streamline your accounting process and keep your system up to date with new technology that will meet evolving demand. Automated systems make it easier for businesses to manage and process invoices and for customers to make secure payments on time.
With AR automation, Sage 100 ERP systems no longer have to rely on time-consuming operations to collect and process payments. Now, businesses are granted the freedom to focus on more important projects while knowing their accounting process is in reliable hands.