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Find out more and book a free 1-2-1 with me here.
Late and unpaid invoices are a persistent challenge for businesses of all sizes, constraining cash flow and wasting valuable time chasing payments.
This issue is particularly acute for small businesses and freelancers, often leading to financial stress and operational difficulties.
However, AI is transforming invoice management, offering a solution that can dramatically reduce late payments and improve cash flow.
The Manual Invoice Follow-up Burden
Traditionally, following up on late invoices has been a manual, time-consuming process.
Business owners and accounting staff spend hours each week reviewing outstanding invoices, drafting personalised follow-up emails, tracking responses and payments, and escalating issues when necessary.
According to a study by the Federation of Small Businesses (FSB), 37% of small businesses have run into cash flow difficulties due to late payments.
Furthermore, the European Payment Report 2021 found that 47% of businesses spend more time chasing payments now than before the pandemic.
The AI Solution: Automated Invoice Management
AI-powered systems can transform invoice management by automating the follow-up process.
These systems can ensure timely and consistent communication with clients, personalise reminders based on payment history and invoice status, and escalate issues automatically when needed.
As I explain in the video:
This AI automation tracks outstanding invoices and sends personalised reminders at predefined set points, helping you reduce your late payments considerably and handling this chasing up pain point for you
The Power of Automation
AI-powered systems can track due dates, send personalised reminders at predefined intervals, and even adjust the tone of communications based on how late the payment is.
This level of automation and personalisation is simply not feasible at scale with manual processes without consuming significant human resource time & costs.
As I explain in the video about the system I created:
In this example we're basically going to send out potentially four different emails depending on how late a certain invoice is. So this first email is going to get sent out for example if it's seven days late... This second email is going to get sent out if it's 14 days late... This third email is going to get sent out if it's 30 days late... And this email is going to get sent out if it's more than 60 days late. These points can all be adjusted & customised to individual clients needs and requirements.
The Bottom Line: Business Time and Cost Savings
Implementing AI automation for invoice management can lead to significant time and cost savings.
A report by Ardent Partners found that best-in-class organisations using automation in accounts receivable processes reduce their Days Sales Outstanding (DSO) by 25% compared to their peers.
Moreover, research by Levvel Research indicates that automated invoicing can reduce processing costs by up to 81% and cut processing times by up to 73%.
For small businesses, this could mean the difference between struggling with cash flow issues and maintaining a healthy financial position.
It's clear that the potential benefits of AI automated late invoice follow up are substantial.
By using AI Automation to handle invoice follow-ups, you can improve your cash flow, reduce administrative burdens, and focus on what really matters – growing your business.
Like me to build you an AI Automation to help your business?
Find out more and book a free 1-2-1 with me here.
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