The Challenges In Accounts Receivable Management

The Accounts Receivable function, for any organization, is well placed to strengthen its cash flow, improve its working capital and even contribute significantly to customer satisfaction.

However, efficiently managing their Accounts Receivable Process for any organization is a tedious process and it’s making them rethink their AR in a strategic way with the goal to shorten the entire invoice-to-cash cycle, reduce costs, improve process visibility and release additional liquidity.

Currently, the AR teams keep themselves extremely busy with several activities that include, credit management, invoicing, tracking aging reports & payments, sending reminders, dispute resolution, maintaining accurate customer master data, cash application, payment collection, payment reconciliation etc. etc.

All these tasks are highly repetitive and rely on outdated paper-based processes and manual interventions that could lead to delays in payments, increase in costs, errors that lead to disputes, and limited process visibility that don’t give the complete picture.

Accounts Receivable Automation Software helps organizations automate much of the above mentioned repetitive, tedious, manual tasks to streamline the organization’s financial transactions with its customers and, most importantly, speed up the credit-to-cash cycle.

CHALLENGES INHIBITING AN ORGANIZATION’S COLLECTION PROCESS:

According to a study done among 100 finance leaders, some of the biggest challenges they face while managing their AR function are:

Original Source: The Challenges In Accounts Receivable Management

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