Balancing the responsibilities of a CFO in this era of transformation is tough enough. Being bogged down by legacy paper-based systems processes and manual processes can make it almost impossible to get a day’s work done in a day.

These old-school systems have the same slowdown effect on your DSO.

Automation can help speed things up, to support a CFO’s success, as well as that of the company.

It gives a finance executive full visibility into the status of all outstanding invoices, in order to make informed decisions. Armed with this knowledge, you can reduce DSO—a high priority and a key measurement of performance for any company.

 

How can AR automation shrink DSO?

Inefficiencies, time loss and opportunities for error are hallmarks of manual and paper-based processes. Inefficient processes like paper check payments too often lead to exceptions that can take weeks to settle, catapulting DSO skyward. In fact, according to a study by the IOFM, relying on paper-based receivables can result in an exception rate from 5 to 20 percent, depending on your industry and the complexity of your organization.

Companies with automated AR functions have a significantly lower exception rate, from 1 percent to 2 percent.

 

More bottom line benefits

If your company sells through distributors or dealerships, manual, paper-based receivables makes it even tougher to be sure customers are paying the correct amount, on time. Plus, your dealers and distributors are spending time chasing down payments, when they could be spending time building their business (and as a result, yours.)

Automation also helps you collect on accounts that might otherwise be written off, because manual procedures make them too costly to reconcile. 

 

Compliance made easy

Another area that automation can improve for you is compliance issues, which are all too often backburnered. Ignore them for too long though, and they can cost you in penalties, not to mention the unquantifiable losses that accompany a hit to your reputation due to non-compliance.

An automated system leverages the latest security technologies to reduce risk and secure your data at the network, data, application and physical levels. It keeps your personnel costs down. And it cuts out the annual audit cost, which can be as much as $100,000.

 

The primary benefits of PCI outsourcing for security and compliance

  1. Leveraging the latest technology – security technologies to reduce risk and secure your data at various levels: network, data, application and physical security
  2. IT spend efficiency – lower costs of using providers and reduced time to provision security services and talent.

-Don’t have to spend on yearly audits which can cost up to 100k

  1. Resource/transactional based billing – paying only for the resources and services you utilize is a more strategic allocation of your IT budget – saving more resources for the core activities of your business
  2. Higher levels of resiliency and availability – from providers that deliver higher-level service level agreements (SLAs), ensure increased uptime and resiliency with the latest architectures, DevOps, and infrastructure.

 

It’s about time.

If you’re ready for the benefits of automated AR and e-invoicing, look for a solution that will work as well for your customers as it does for you. Systems should complement their processes, and offer a portal that both sides can access, for real-time visibility into an account’s status.

A cloud-based solution, Paybox requires no capital investment in hardware or software, and takes only minimal effort on the part of internal IT. It’s user-friendly, and easy to learn.

Paybox AR automation solutions provide visibility into payment status, so a CFO can manage cash and working capital more easily and accurately. It also provides robust data and analytics, so you can analyze purchasing and payment patterns, and make decisions with greater confidence.