Industry 4.0 transformation has been around for a decade now, with the spread of digitalization starting slowly at first. However, the COVID-19 pandemic put everything in high gear, and the rate of digitalization and automation reached new highs. Every process got transformed into its digital counterpart and has now become our new normal.
However, the adoption of a few aspects in their digital avatar has been slower than others. One of those aspects is automated settlements with clients. Closing a deal, or finalizing the payout with a client, or just settling the account, all of these processes can seem like tricky appointments for automation. So, what kind of settlement automation software should you use? Read on.
What are automated settlements?
By definition, settlements in the business world are basically when the payment made by the client for your product or service reflects in your bank account. Therefore, the final payment wraps up the business with that particular client, hence called a settlement.
Automated settlements just help make these processes more independent without a lot of human involvement in the actual work. The sole purpose is to free up the time and resources for improved productivity instead of doing mundane and repetitive tasks.
How do you automate settlements?
Automating settlements mostly happens by incorporating software that integrates with your CRM. Not only will it help to handle and trace the finances easier, but also it’ll be more viable and transparent. The reason you need to integrate it with your CRM are:
- It can track pending payments
- It can automatically send out reminder emails/SMS
- It can calculate the dues to be paid in batches or as a one-time settlement
- The payment can be initiated through any means necessary through the payment gateway
The CRM already has details about your clients and what kind of business you are doing with them. Furthermore, it also has details about the expenditures and income for every step of the process. So, getting a settlement amount at any point in the process becomes easy.
Also, when you set up an automated settlements process, you eliminate the repetitive tasks that a dedicated employee has to perform about following up with the client about their dues. Instead, the software frees up time to do bookkeeping and accounting in real-time.
Benefits of Automating Settlements with Clients
There are many reasons why automating settlements with your clients is a good idea. It helps your business grow and adds mental peace for the employees in your finance department. Here are the top benefits:
- 2-3 time faster invoice generation and processing
- Up to 80% reduction in invoicing costs
- Time for cash inflow improves up to 30%
- 30% reduction in bad debts and NPA
- Reduced errors in accounting
- Up to 50% reduction in DSO
- Improves value-adding work done
- Improved job satisfaction
- 1.4% improvement in productivity per month
Conclusion – Is automating settlements a good idea?
While it might seem far-fetched and dumbfounded, automating settlements barely has any downsides for a business. It reduces the physical to-and-fro approach of the whole process and yet captures the essence with automated, timely reminders. Furthermore, it initiates payments and gateways for quick and easy settlements for both parties. So, it is pretty safe to say that automating settlements is a good idea.
