The global AR automation market was valued at 1891 million USD in 2020 and will be worth 3861 million USD by 2026. That is a CAGR of 12%. An increased focus on cash flow improvement and reduced accounting time are the major drivers behind the growth of this market.
Despite all the latest technologies, the human touch is still essential for any financial automation endeavour. Let’s take a closer look at how automation can emphasize the importance of the human factor in accounts receivables.
How does automation uncover the human side of accounts receivables?
Automation offers numerous benefits to the accounting world, from digital payments to accurate projections to valuable data helping organizations make more informed business decisions.
Some feel that the shift from manual bookkeeping to automation will reduce the need for AR staff. However, automation creates clean and accurate books, helping AR staff be more productive and contributing to customer retention.
Implementation and adoption
Businesses use many different accounting tools for bookkeeping, reconciliations, revenue forecasts, etc. However, if you use an automation platform, it will be only as effective as the data you feed into it. The more accurate the data goes into it, the more accurate the output will be. This is precisely where you need the human touch when implementing an AR automation solution for collections, B2B payments, or more.
Without some amount of human intervention, you may not get the full value from automation. An AR team is still needed for better adoption and implementation of these platforms.
Data-driven decision making matched with human intuition
Business leaders make critical business decisions based on data and counsel from key stakeholders. A key benefit of automation is that it makes it possible to create a dashboard with key metrics available in one place. Decision-makers would only need to look in one place for financials, sales data, and more.
Automation can help consolidate data – such as credit score insights – in an easy-to-understand format. The final decision still rests with the business leaders. Some leaders may use their intuition in making business decisions, but in the current market conditions, all businesses prefer to make data-driven decisions. With an automation platform, good data helps leaders make good decisions.
Technology can work wonderfully for the things they’re created for, but its programming is still limited. When it comes to navigating complex and unexpected events, it is hard to replace genuine financial experience.
A tool to build meaningful customer relationships
Automation is perhaps the most popular when it comes to sending out communications. It is easier to set and forget notifications and reminders through various channels, not to mention cost-effective.
But while automation has created efficiencies in communication, this doesn’t mean that businesses should solely rely on it. When it comes to connecting with customers, the human touch is irreplaceable. It is, therefore, necessary for businesses to look at automation as a complementary tool that can unlock areas of focus in communication.
An AR automation platform, for instance, can tell you which customers may need a more personal approach through recorded data on credit scores and payment behaviour. Finding this information is more accessible, but you still have to call your customers to understand their issues with paying on time. Direct communication is necessary to help you make decisions that can impact your cash flow.
With automation becoming so deeply ingrained in our day-to-day lives, it is refreshing for customers to experience genuine connections with their business partners. By leveraging technology, you can create deeper customer relationships that help your business in the long run.
There’s no question that AR automation can drive business efficiencies. The emergence of advanced technologies like Artificial Intelligence, Machine Learning, and Blockchain is likely to transform further the finance and accounting sector further, like many other industries worldwide. However, to truly get the benefits of these tools, you will need some amount of human touch. Combining the accuracy of automation with human experience is a winning recipe.
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