Article Updated 8-31-22
The average collection time for a small to medium sized business is 19 days.
According to a recent survey, the majority of the 405 businesses surveyed indicated that they wanted to reduce the time to collect by 50%. How can your business achieve this lofty goal? ERP systems have a series of powerful tools that can aid the collection process. Receiving payments in a timely manner allows you to operate properly and make necessary investments in equipment or staff to keep your company growing. Technology can be a powerful driver in increased receivables.
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Below are five easy ways to utilize existing tools within your ERP system to increase cash flow:
1. Auto-Invoice out of your ERP.
Emailing invoices to your customers seems easier but that process can be almost as time consuming as physically mailing the invoices. With Microsoft Dynamics 365 Business Central’s ERP system you can automatically email invoices to your customers when you post. Build in automatic email reminders as the due date approaches and you will save yourself hours of phone calls.
2. Process credit cards within your ERP system.
Accepting credit cards while conforming to the PCI Security Standards is seamless with your Dynamics 365 BC system. Dynamics 365 BC is outfitted with tools to ensure your compliant. Simply enter the credit card information into your ERP then receive notification of approval or denial. There’s even the option to automatically show receipt of funds in your ERP once they arrive in your account.
3. Accept checks by phone.
Paper checks take the longest to arrive. Shorten that time by getting the pertinent information over the phone as soon as the check is issued. This gives value to your clients by making the payment process easier and can significantly reduce the time it takes for you to receive money owed.
4. Scan in checks for immediate deposit.
Getting to the bank can be difficult in the course of a busy day. You can easily outfit your accounts receivable department with a small reader that authorizes the check online then immediately deposits the money into your account.
5. Accept ACH payments.
The Automatic Clearing House (ACH) is a U.S. Government run system that allows funds to be electronically transferred through an Electronic Funds Transfer (EFT).