streamline your accounts receivable

Accounts receivable shouldn’t cause headaches for you or your customers. We have tips to reduce the number of checks you receive and automate your accounts receivable process.

According to a recent survey of our business clients, the top business operations priority is to improve accounts receivable processes. More specifically, clients want to reduce the number of checks their business receives and automate some of the processes. Improving your accounts receivable will create a better experience for your clients and your business.

There are two steps to streamlining your accounts receivable process.

Step 1: Reduce the number of checks you receive

• Identify an Electronic Bill Presentment and Payment (EBPP) software that fits the needs of your business. There are a few systems out there and each have their own pros and cons. Your EBPP should integrate with your specific accounting system, like QuickBooks, to make tracking easy.
• You can use an EBPP to create invoices and send to your customers via email.
• Your customers can make secure payments online with their business debit or credit card, eliminating the need for a paper check.
• Communicate any changes to your customers in advance so they can prepare for changes in how they receive and pay invoices.

Step 2: Automate your accounts receivable process

• Improve cash flow and efficiency using direct payment with Automated Clearing House (ACH), an electronic funds-transfer system. In the same way you may have your car insurance or gym dues automatically billed to your checking account, you can set up an agreement with your customers allowing you to initiate a debit to their account for their payments. You can learn more about how ACH can support your business here.
• Technological advances have rendered the old ways of doing things obsolete. New technology makes it easier for customers to make secure payments using debit and credit cards. If your business hasn’t updated to add these mechanisms, it is time to consider making the change. Virtual or contactless terminals and mobile point of sale systems have become more common in the last year. Your merchant processing provider should even be able to help you set up a secure eCommerce website to be able to process orders and accept payments.

If you would like to have a conversation about improving your business efficiency, please contact your First Financial representative today.