The accounts receivable (AR) process, which includes the invoicing of customers, clients and members and the processing of monies received, is a vital process for most organizations. Consultance Accounting helps small and medium-sized organizations and businesses reengineer their AR processes. Here’s how we did it for one client, a professional services firm:
Move to a cloud-based accounting software
Moving the client’s accounting platform from a desktop system to a cloud-based solution, QuickBooks Online, was one of our initial steps. The move to the cloud allowed us to enhance the firm’s efficiency, security and profitability. Another great benefit was the ability to leverage other business applications that work seamlessly with QuickBooks Online, including a bill-pay solution, Bill.com. Click here for more information on the benefits of moving to QuickBooks Online.
Implement an electronic bill-pay solution
Electronic payment solutions, such as ACH payments, credit, debit and purchasing cards, wire transfers and PayPal, are great for the following reasons:
- They provide your customers with several payment options, thus increasing the likelihood of receiving payments on time.
- You and your customers can easily view account information, thus minimizing inefficient back and forth communications regarding payment inquiries.
- Electronic payment solutions can seamlessly integrate with your bank account and accounting system, reducing manual entry and enhancing the accuracy of your data.
- The risk of payment fraud associated with paper checks is reduced.
We implemented Bill.com to process our client’s accounts payable and accounts receivable transactions. Bill.com greatly simplified these processes, allowing those involved in the process to focus on more value-added services. On the accounts receivable side, invoices are created in Bill.com and can be automatically generated each month. Auto-reminders can be sent from the system as due dates approach. The client’s owner has access to up-to-date financial information, which can be accessed at any time, and using his mobile device. Click here to learn the benefits of using Bill.com.
Strive for the best option – No Account Receivable through pre-authorized EFTs
As part of our reengineering services, Consultance Accounting takes a broad look at our clients’ accounting processes and identifies ways to significantly improve their bottom line results. When it comes to the AR process, there’s no better way to do this than eliminating the need for AR itself! This can be done through pre-authorized EFTs (Electronic Fund Transfers).
We reengineered our client’s billing process by having recurring customers authorize the firm to initiate an EFT from the customers’ accounts, at the beginning of each service month. As a result, payments are collected immediately and automatically upon the due date. And as new customers come on board, the client establishes this upfront EFT authorization in its initial contract. This completely eliminates the collection hassles that many businesses/organizations endure and greatly improves cash flow.
By reengineering our client’s AR process, over 90% of its recurring customer accounts are now set up for pre-authorized EFTs, while the rest are on some other form of electronic payment – eliminating the hassles of paper checks altogether. Customers are happy since they don’t have the hassle of dealing with unnecessary paperwork and can easily review their payment history in real-time through the Bill.com system.
Through e-payments, you can collect your receivables two to three times faster than paper-based processes.
Do you want to improve your cash management process?
Consultance leverages exceptional talent, proven processes, and top technology platforms to deliver timely & accurate financial solutions that help small and medium-sized organizations improve productivity, increase profitability, and achieve their goals.
Contact us for a free consultation.