If you want to discover what makes world-class finance teams stand out then look no further.
All CFOs these days have one thing in common. Their financial systems don’t cut it anymore. Manual processes take too long and the expectations are higher than ever.
Let’s dive into the problem:
Old-fashioned finance systems cause massive bottlenecks for most businesses. Slow invoice processing times, missed payment deadlines and hidden inefficiencies are costing companies money.
Fortunately, forward-thinking CFOs who upgrade their systems correctly are reaping the benefits.
In this post you’ll learn:
- Why automating reminders is a top priority right now
- What CFOs want from their financial systems
- Top features that matter most when upgrading
Why System Upgrades Are A CFO’s Top Priority
These days the role of a CFO has changed.
They’re no longer number crunchers behind desks. They’re business leaders meant to steer the company towards growth, identify risks and manage digital transformation.
And it all starts with updating financial systems.
Right now one of the top things CFOs want to improve is the accounts receivable process. When clients don’t pay on time, it hurts cashflow. And when cashflow is interrupted… everything grinds to a halt.
That’s where automated reminders come into play.
By implementing a tool that automatically sends out reminders CFOs can reduce the amount of manual work their finance teams are stuck with.
Efficient invoicing software allows you to set reminders that are sent out automatically at pre-determined time intervals. No more manually chasing clients for payment. No more forgetting to follow up. Your software will remind your clients for you.
This may not sound like a big deal but hear me out.
Automated reminders are just one small aspect of the financial system CFOs want. Let’s look at the larger picture.
CFOs Understand The Pain Points Of Outdated Financial Software
Did you know that over 50% of B2B invoices are past due?
Yep. You read that right. Over half of US businesses that accept invoiced payments are waiting on clients to pay them. And that creates a huge problem.
When invoices go unpaid, it affects your bottom line.
Cash that should be coming in is not. This means businesses can’t hire great employees, pay suppliers on time and plan for sustainable growth.
CFOs who recognize this problem are investing in financial software with automatic features.
Automated reminders, smart payment scheduling, customizable workflows and real-time reporting are quickly becoming table stakes.
Another study suggested that 68% of invoice data is still being key-entered manually.
So what does that mean for your business?
If you’re like most companies… You’re wasting time entering the same information over and over into your systems.
Let’s make sure that isn’t you.
Why Automated Reminders Are So Important
Sending automatic reminders to your customers can drastically reduce the number of overdue invoices you’re dealing with. But did you know there’s more you can do with this feature?
When invoices are being sent manually, it’s easy to let things slip through the cracks.
Maybe a reminder gets set for a client but never actually goes out. Maybe it’s sent too late. Maybe the follow-up is inconsistent across different clients.
When you have a tool that automatically handles this process for you, everyone is held to the same standard.
Here are a few more ways automated reminders can help you.
Sends reminders at scalable intervals. The sooner you catch a late payment, the better. Automated software can be set to remind your client at specific time frames. Some examples are: 1 day after the due date, 3 days after the due date and so on.
Personalizes reminders for different customers. Do you worry about annoying your clients when you send payment reminders? Automatic software allows you to customize your reminders so you can send different messages to different clients.
Tracks who opens and pays after a reminder is sent. Want to know which clients consistently ignore your reminders? Software can track who views their invoice reminder and who ignores it. That way, you can give those clients special attention.
Automate escalations for late payments. Did your client not respond to reminder number 1 or 2? Automatically escalate to a phone call or have a higher-level employee follow up.
Automated reminders do so much more than send your clients notifications. By allowing one less thing to worry about, CFOs are wasting less time on administrative work and focusing on the things that matter.
What Features Should You Look For?
If you’re ready to upgrade your financial systems, here are some features you should look for.
There’s no one-size-fits-all solution here. You need to focus on what’s making your team the most pain right now and find a tool that fixes that for you. For most businesses that will be automated reminders.
Here are a few features that will help you along the way:
Automated reminders and follow-ups. Set your payment reminders to be sent automatically at the intervals you specify. Everything from the initial invoice to final follow-ups should be automated.
Real-time reporting. Your finances should be available to you at your fingertips. CFOs want to know what’s going on right now, not yesterday or last week. Having real-time reports will allow you to identify risks before they happen.
Seamless integrations. Do you use accounting software? Do you have a CRM? Make sure that your payments platform integrates with these services. You don’t want siloed finances so look for software that can connect to everything you’re already using.
Scalability. You want something that works for a small team of 20 but will also cater to your needs as you expand and grow. Look for software that allows you to add more employees and more clients easily.
These are just a few features to consider when searching for the right financial platform for your business.
Keep in mind, you may not know right off the bat what you need. That’s ok!
How Do You Find The Right Solution?
If you ask ten CFOs what financial software they use, you’ll likely get ten different answers. Every business has unique needs.
However, there are certain things you can do to ensure you find the right software for your business.
Identify your biggest pain point. Are late payments killing your cashflow? Then look for software that specializes in automated reminders and payment collections.
Read the fine print. Don’t get stuck in a tool just because it’s cheap. Cost of purchasing is only one factor. Implementation, training, and support should all be taken into consideration.
Get buy-in from your team. You can buy the most expensive software in the world but if your employees don’t like using it, you’re wasting your money. Find software that your team will actually enjoy using.
Security. Financial software is risky. Make sure that any tool you use follows industry standard security protocols.
Wrapping Up
CFOs these days are constantly looking for ways to improve financial processes. By upgrading financial systems they can eliminate manual tasks, collect payments on time, and give their teams the tools they need to excel.
If you’re on the fence about upgrading your financial software, here are a few final thoughts to help you decide.
Financial automation is only getting bigger.
Starting with automated reminders is a great first step but soon you’ll want everything to be automated. From payment reminders to late fees and payment scheduling.
You’ll thank yourself later.
Once you go live with automatic software you’ll never want to go back. Not only does it save you time but it keeps you organized and running like a well-oiled machine.
Talk to your team.
Before making a decision it’s always best to know what your team needs. Do they struggle with manual data entry? Do they have an issue following up with clients? Ask around and you’ll be surprised what solutions you come up with.
Upgrade your systems and watch your efficiency skyrocket.
