The Accounts Recievable Management Guide
THE BUSINESS IMPACT OF EFFECTIVE AR MANAGEMENT
The collection of accounts receivable (AR) is vital to your business’ financial health. It affects your short-term ability to meet financial requirements and your ability to plan for long-term growth.
Without the aid of technology, AR management can become a maze of inefficiencies and obstacles. Teams face recurring issues that delay cash flow, disrupt financial stability, and negatively affect customer satisfaction.
5 BLOCKERS TO BETTER AR
Late payments are a common AR issue. However, they are a symptom of what’s wrong, not the root cause. These five areas are the key challenges that impact AR efficiency.
- Siloed systems – When AR data is stored in multiple places, teams lack the ability to quickly access and analyze information. This delays tasks such as invoice generation and collections management.
- Credit management challenges – Conventional credit assessments are time-consuming and error prone, limiting the data AR teams can analyze. This results in unreliable customers being onboarded which increases the chance of late payments.
- Manual invoicing – Invoicing is a highly manual activity for many organizations, involving keying in data and validating information. This process is riddled with errors and delays, leaving money trapped.
- Inconsistent collections – Without being able to automate tasks such as invoice reminders, it’s difficult to maintain consistent and timely collections. This impacts customer engagement and payment reliability.
- Limited payment options – Customers want flexible payment options and companies that only offer traditional methods, such as checks and bank transfers, experience delays in payment processing and a decrease in customer satisfaction.
Organizations that lack automation in their AR process suffer from these challenges and a higher percentage of late payments. This is why 9 in 10 CFOs say they need more automation.
ACCOUNTS RECEIVABLE AUTOMATION: YOUR SOLUTION TO EFFORTLESS AR
With AR automation, you can streamline workflows, eliminate errors, improve customer experience, and accelerate payments.
| Problem | Solution | Outcome |
|---|---|---|
| Siloed and legacy systems | Consolidate data from your entire tech stack (including emails, ERP, and CRM) in one central location | Everyone on your team can access the data they need through customizable dashboards |
| Credit management challenges | Payment history, financial statements, credit scores, and industry data are analyzed automatically. The information is presented on intuitive dashboards | Your team makes fast and informed credit decisions, leading to accelerated sales and reduced risk of bad debt |
| Manual invoicing | Invoice generation is automated, including data entry, calculation of amounts, and creation of invoice templates | The process is faster and more accurate, reducing costs, accelerating the order-to-cash cycle, and creating a happier team! |
| Inconsistent collections | Customizable communication workflows automatically send invoices and follow-ups until the invoice is paid | Your team saves time and effort, and customers enjoy working with them. Invoices stay top of mind and are paid faster |
| Limited payment options | Offer your customers a choice of payment methods and currencies through a payment portal | Customers can “self-serve” and pay using their chosen method, at any time. Your customers will appreciate the flexibility and you’ll get paid promptly! |
