How AR Software Helps Seamlessly Manage Proof of Delivery Documents
Proof of delivery (PoD) documents are important for ensuring businesses and their customers are on the same page regarding delivery details. Generating PoD receipts and keeping track of that data is a crucial responsibility for accounts receivable (AR) departments.
Do you have the right solution in place to optimize your PoD document management?
Inefficiencies in Traditional Proof of Delivery Processes
Traditionally, companies used paper forms to create proof of delivery receipts. This involved writing in key details and signatures, copying the document, processing it manually, and storing physical copies.
Today, some companies have opted for a digital process that offers major improvements compared to the paper approach. However, simply switching over to digitally creating PoD receipts doesn’t mean your PoD processes are automatically optimized. It's important to consider whether your PoD processes still involve costly and time-consuming tasks like:
- Manual data entry and double-checking work and data to ensure accuracy
- Manually matching records to identify possible problems
- Storing and organizing records manually
Fortunately, there’s a better way to manage PoD documents with fewer manual processes and greater efficiency.
A Better Solution for Managing PoD Documents
With AR software, you can fully digitize your PoD processes, whether you start with digital files or paper documents.
If you create PoD receipts manually, the process begins with scanning the receipts. You may think that that’s what your current process looks like, but do you still need employees to manually enter the data from those scanned documents into your accounting program? With Ripcord’s fully digital solution, data extraction happens automatically through artificial intelligence (AI).
If you’re starting with digital documents, your data may be unstructured which means you still have to manually enter data from your digital forms into your accounting system. Ripcord can automatically extract and process the data so that it feeds seamlessly into other software solutions you already have in place to automate your AR processes.
In both cases, automatic data extraction means you can accurately cross-reference documents and carefully organize and store all your PoD documents with almost no manual effort.
The Importance of Modernized PoD Management
With an efficient document management solution in place, your PoD documentation can optimally serve its purpose without overburdening your staff. Consider these three key benefits of modernizing your PoD management below.
1. Improve cash flow
Maintaining a healthy cash flow is paramount for any business. Unfortunately, cash flow has been a challenge for many small businesses, especially in recent years. The average small business is dealing with thousands of dollars in late or unpaid invoices. One study found that up to three-quarters of businesses didn’t have enough cash on hand to cover two months of operating expenses, making a steady cash flow crucial.
Fortunately, with a consistent and efficient way of managing PoD documents, you can improve your cash flow by:
- Reducing your Days Sales Outstanding
- Resolving disputes more quickly by instantly providing or resending the proof you need
- Avoiding inaccuracies that can result in lost revenue
2. Keep detailed records
A digital solution for managing PoD documents also means you can get detailed with your data and keep all this information securely stored and easily accessible. You can include details like...
- Date and time of delivery
- Location of delivery
- Recipient’s name
- Photos of delivery
- Reasons for a failed delivery
- Damaged goods
- Customer comments
If you had to manually move all this information from a paper or electronic form to your software programs or hunt it down in a physical file, you may be tempted to skip the details and only stick to the most essential information. However, keeping track of all the details can help you avoid misunderstandings with customers and ensure you have a close eye on your deliveries. Thankfully, with a software solution in place, keeping track of details is far more doable.
3. Free up accounting staff
Using AR software to expertly manage your PoD documents gives back valuable time to your accounting staff. They’ll no longer have to spend hours of their day on tedious manual tasks that can simply be automated through AI.
This means companies can reduce their reliance on accounting staff or outside vendors. Or it may mean your accounting department now has more time to focus on areas like analytics and projections to help you grow your business. Either way, it’s a win for your business and team.
Empower Your Finance Team with Automated AR Software
AR software can empower your accounting team and your company as a whole to optimize the way you manage proof of delivery and other AR documents. Want to see how much room for improvement you have in your AR processes? Use our practical checklist, and learn more about how Ripcord’s machine learning technology can take your AR processes to the next level!