Delayed Payments Hurting Your Cashflow? Try Automated Invoice Reminders!

 |  Apr 17, 2018

Delayed Payments Hurting Your Cashflow? Try Automated Invoice Reminders!

The success of your business is largely dependent on how well you are able to manage the cash flow.  This is especially true for the distributors and dealers that have to manage a stream of cash inflows and outflows on a daily basis and don’t have a dedicated automated invoice reminders service too.

Now, it’s not hard to see why cash flow is important. But how can you take control of that? Well, naturally you should be paid by your clients. However, that’s not quite enough. You also need to be paid on time.

Let’s take a look at some facts**:

  • The average wait for payment for the small businesses is 63 days  
  • Pending B2B invoices have impacted most businesses in India; only 14.2% believe that late payments have not impacted their businesses.

Two things are clear from this information- late payments are a big problem, and they are affecting almost every business in India.

Payment Management the “Old-School” Way

No matter how many times you do it, it’s never easy to send payment reminders about the unpaid invoices. It’s uncomfortable, tedious, and a straight up hassle. However, you can’t just not remind them when the payment is due. Otherwise, you might as well just stop expecting to get the money back. So, is there no better way? Actually, there is.

Enter Automated Invoice Reminders

Automated invoice reminders are the ultimate tool to track your account receivables. This is because these are automated, easily customizable, and easily traceable.

How do they work?

Using automated invoice reminders is really simple and easy. They can be directedly linked to your current ERP software such as Tally or SAP, etc. or some other accounting software. The configuration takes little time, and once it’s set up, you can enjoy the following features:

  • Prioritized list of pending invoices for follow-ups: Want a snapshot of the all the pending invoices in seconds? An automated invoice reminders tool provides a dashboard from where you can keep an eye on all the account receivables and their status in real time. Since the accounts are automatically sorted on the basis of their priority in the list, you can identify the ones that need your immediate attention at just a glance.
  • Easy customization: You don’t have to compromise with the human touch while availing new technologies. Although the advanced unpaid invoices program is automated, it allows you to personalize individual invoices for each client. This way, they don’t get the same treatment that’s dry and unemphatic.  
  • Automated invoice reminders scheduling: It’s natural if you want to go easy on your old clients that bring a lot of business but keep a close watch on the new ones. With automated invoice reminders, you can manage your invoices reminders in a way that supports this system. This is because you can easily schedule the automated reminders. For instance, for your most loyal clients, you can schedule the reminders for a few days after the due payment date, and for the new ones, you can make it go active on the due date itself.   
  • Combined SMS and email address coverage: Worried that the payment reminder email (s) sent to your vendors or clients will be lost and forgotten in the respective inboxes? With automated invoice reminders, you can automatically send all the reminder messages on emails and also on SMS in real time. That way they will know where your priorities are at. Plus, they would be hard-pressed to forget about the unpaid invoices.

What are the advantages of using an IR program?

Integrating an automatic reminders service into your existing ERP software can make your payment process a lot smoother and improve the overall cash flow. Additionally, you can enjoy many other benefits that can help you take your business to the next level:  

  • Automated Process Means “Just Save and Forget”: Say goodbye to manual follow-ups that don’t get you the results you want. With automated invoice reminders, you can streamline the entire process and give a boost to its efficiency on many levels.
  • No More Mistakes: The timing of the payments has become quite important under the GST regime as you need to file the returns and invoices as per their correct dates. Automated invoice reminders ensures that the payment records can be maintained with the highest level of accuracy in real time so that there are no reconciliation mistakes that may cause your refunds to delay or get “stuck.”  
  • Get Paid faster: When the reminders are automatically issued on time as per the schedule, you know you will get the payments on time.
  • Track the Invoices Payment Status from the Dashboard: Tracking the payment status of the invoices takes just a few seconds with the IR dashboard. So, you can carry on with the other important business processes without getting distracted.
  • No Paperwork: Still using a ledger to record the accounts of your customers and dealers? Mistakes are easy when you use pen and paper to track the account receivables. In fact, you could lose the details of the unpaid invoices in the thick tomes. This can be improved with automatic reminders program, with which everything is stored in a digital format that’s convenient, safe and secure.

It’s not right for you to spend so much of your valuable time chasing after your dealers, distributors, and customers for the clearance of unpaid invoices. Why trouble yourself with a process that can be easily managed by a simple automatic reminders program? Even more so, why not get paid faster that boosts your confidence in finances and allow yourself to make better decisions for your business on the basis of financial stability and improved cash flow? Why not start today?

*source: http://time.com/money/3888448/cash-flow-small-business-startups/

**source: https://atradius.nl/rapport/payment-practices-barometer-India-2017.html

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