When it comes time to choose an ERP system, you have a number of options. Microsoft Dynamics 365 should be one of your top contenders. Why is that?
Dynamics 365 features better accounts receivable and collections procedures. Those in turn allow you to get paid faster, so you can improve your planning, budgeting, and cost management processes.
Even successful companies struggle with accounts receivable and collections procedures. It’s a challenge – you want to extend credit to your customers as a way to boost your sales, but it can lead to large gaps on your balance sheet.
Dynamics 365 improves the accounts receivable and collections process, making it easier to get the funds you need, faster. Here’s how it does that: the ERP system puts all of your credit and collections data in one place. It’s all on a single page – no more hunting down information on who owes you what and when. This data comes from multiple sources.
Moreover, this information is updated in real time. You don’t have to worry that your data isn’t relevant or that it’s old. Another helpful feature is the Aging Snapshot: it presents customers’ calculated aging balances at any given time.
Dynamics 365 also automates the collections process. You can create predefined collections letters that the system will automatically generate to notify customers of past due balances. Dynamics 365 will also apply interest codes to overdue payments, reducing manual tasks as well as errors.
There are a number of benefits that the accounts receivable and collection processes within Dynamics 365 bring to your business.
When you have to hunt down accounts receivable and collections information, it takes longer to figure out not only what you’re owed but to get paid in general. Overdue invoices might slip through your fingers, costing you money. The faster you act on invoices (especially when they’re overdue) means you get paid faster.
Getting paid faster has other benefits to your firm. When you know what money is coming in (and when it’s supposed to come in), your planning improves. You can predict when you’ll be paid, so you can plan accordingly. If you know you’re expecting a payment at a certain point in the month, you can make a major purchase or investment afterwards.
Improving your accounts receivable and collections also helps your budgeting and cost management processes. Building a budget is no longer an annual procedure; budgets can actually be living documents that are revised based on changing conditions, and having accurate information about what money is coming in helps you make those changes. Cost management becomes easier, too – you no longer have to worry that you can’t afford something because you don’t know when you’ll next be paid.
Cash flow keeps your business running. Choose an ERP system that allows you to get a handle on it.