Only about 13% to 15% of mid-sized firms expect significant growth in the next 3 years. According to a recent report by PYMNTS, this could explain why these firms are hesitant to fully automate their accounts receivable (AR) processes—they don’t feel ready for, or focused on, achieving substantial growth.
This hesitation has an impact on the broader business: automating processes will help them grow. PYMNTS found that among companies not automating their AR processes, a large portion (42%) fall in the lowest revenue bracket, with only 20% in the highest revenue group.
“This presents a significant implication for finance operations: The adoption of automation might not only reflect but also drive a firm’s growth trajectory, indicating that proactive approaches to updating financial processes could be a catalyst for expansion via automation,” says PYMNTS.
To compete in today’s market, staffing agency leaders must embrace a culture of continuous learning and adaptability to facilitate the acceptance of new technology. Let’s take a look at 3 things leaders can do to set their organization up for success:
Best Practices for Rapid Growth in Staffing Agencies Through AR Automation
Step 1: Choose AR automation that maps to your business objectives
Choose an AR automation solution that will help your organization achieve its broader goals more quickly. Do the solutions fit your organization’s needs and integrate smoothly with your current systems? Automation should be a seamless solution that, once implemented, requires minimal ongoing attention by you and your staff. It operates in the background, handling tasks automatically and eliminating the need for manual intervention or change management.
When selecting a solution, consider factors like scalability, ease of use, customization capabilities, and vendor support. Involve stakeholders (your CIO, CEO, VP Sales) in the decision-making process to ensure their commitment and address any concerns from the outset.
Step 2: Get a detailed implementation plan
Provide your automation provider with details of your current manual AR processes and the software systems you use. Ask your vendor for a detailed implementation plan that includes the steps, timeline, and responsibilities for each phase of the project, such as preparation, implementation, user-acceptance testing, and continued post-go-live discussions. For so many organizations, implementation is extended, painful, and riddled with poor communication. That doesn’t have to be you.
Step 3: Track your Success
The best measurement strategies start before a solution is even implemented. What are the metrics that will impact your business most? Take a benchmark of them before you begin using your new solution. Once the solution is in place, keep track of its performance and effects on your AR processes. Measure success using those key performance indicators (KPIs) you identified like increased work hours spent on revenue-generating tasks rather than manual AR processes, faster payment collections, the eradication of errors, reduced DSO, and customer satisfaction.
The industry faces similar challenges. In a tight market, winning organizations have leaders who are looking for all the possible ways to create an advantage. In staffing, a key opportunity lies in their accounts receivable [AR] process.
I’d love to hear about other opportunities you see. Message me here or meet me at American Staffing Association's - Staffing World in Nashville. Cartwheel will be in the Knowledge Hub in the Tech 1 booth.
https://www.pymnts.com/study/accounts-payable-receivable-trends-automation-payments-innovation/
