There’s no doubt that you’ve heard the buzz about artificial intelligence and tools like ChatGPT. It’s the hot topic right now in the world of business. Consider this: two months after its launch date, ChatGPT reached 100 million monthly users, making it the fastest-growing consumer application in history.
Accounts receivable professionals are quickly finding that, beyond the buzz, ChatGPT and other forms of generative AI have the potential to revolutionize the AR process.
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Applications of ChatGPT for AR teams
ChatGPT is a generative AI text tool that is capable of creating original copy based on prompts provided by the user. There are many potential applications of ChatGPT for accountants, including:
- Cash flow management: AR representatives can ask ChatGPT how various AR processes impact cash flow management.
- Client communications: ChatGPT can quickly create client communications, such as payment reminders and dunning notices.
- Reporting and metrics: ChatGPT can help generate or explain key performance indicators (KPIs) and metrics.
- Software & tools: ChatGPT can offer guidance on the use of accounting software, tools, and automation.
- Month & year-end closing procedures: The tool can help outline the steps and requirements for month and year-end closing in accounts receivable.
As a word of caution, ChatGPT notes at the bottom of their page that, “ChatGPT can make mistakes. Consider checking important information.”
When using ChatGPT for research purposes, the software does not currently have the capability to fact-check data. This means that it can provide responses that are factually incorrect. It’s essential that users perform due diligence to verify information gained through ChatGPT.
How to get started on ChatGPT
- Visit https://chatgpt.com/
- Create an account if you haven’t already.
- Choose a plan that works for you: Free, Plus, or Enterprise. Plus and Enterprise plans offer data analysis functions and the ability to create custom workflows.
- Enter a prompt in the ‘send a message’ field. The success of your working relationship with ChatGPT depends on the effectiveness of your prompts.
Featured Resource: The Leveraging AI in Accounts Receivable Playbook
How to write an effective prompt for ChatGPT
- Be clear and specific. Vague or ambiguous prompts result in unclear and irrelevant responses.
- Ask open-ended questions. Craft your prompts to encourage detailed and informative responses.
- Provide context: Providing the context of your question or request helps ChatGPT generate more relevant responses. For example, you could begin your prompt with the statement “I work in the accounts receivable function, and…”
- Specify the format: You can request that ChatGPT deliver responses in specific formats: such as a list, an email, or an invoice.
- Use complete sentences: Avoid using fragmented or overly technical language. ChatGPT has been trained to understand the way we talk and interact, so write in a way that a person would understand.
- Avoid excessive length: While context is important, overly long prompts can lead the model to become lost in the details.
- Review the response: After receiving a response, take the time to assess it. If it’s not what you wanted or expected, consider refining your prompt or providing additional context.
ChatGPT prompts for accounts receivable representatives
Client payment reminder email
- Write an email reminding my customer to send payment by [insert due date]
- Write 3 payment reminder templates for customers: one for when the customer is first sent an invoice; one for one week prior to the invoice due date; and one for the day that the payment is due.
- Write 3 dunning emails with a polite but firm tone: one for when an invoice is 30 days past due, one for when an invoice is 60 days past due, and one for when an invoice is 90 days past due.
Data analysis
- What are the key performance indicators (KPIs) to monitor in accounts receivable?
- Why is [insert metric] important in accounts receivable?
- Make me an accounts receivable aging report that I can input.
Accounting software & automation
- Recommend accounting software or tools for increasing accounts receivable efficiency.
- Provide insights on implementing automation in the accounts receivable department.
Training and development
- What are the latest trends and innovations in the field of accounts receivable?
- Suggest resources or classes to enhance my accounts receivable skills.
Prioritization strategies
- We are a [insert your industry] business with a DSO of [insert your DSO]. Use the following list of past due accounts, including their due dates and payment terms, to prioritize the most important collections in order to reduce our company's DSO.
Industry standards
- What are the typical payment terms for businesses in the [insert industry]?
- When should a [insert industry] company offer early payment discounts?
Month and year-end
- Prepare a month-end checklist for the month-end process in accounts receivable.
- Prepare a year-end checklist for the year-end process in accounts receivable.
Remember that ChatGPT can use company and vendor data alongside these prompts to tailor responses to your organization. However, data privacy and security must be considered before using any potentially sensitive information with ChatGPT.
If you would like to encourage adoption of ChatGPT within your AR team, consider drafting a company, or upgrading to an Enterprise account to take advantage of enterprise-grade data security and privacy features.
Featured Resource: The Leveraging AI in Accounts Receivable Playbook
