Building an Automated Workflow with AR

When it comes to Accounts Receivable Management, delayed collections, higher DSOs, bad debts, inaccurate or uninformed manual forecasting methods, spreadsheet errors, and lack of 360o visibility are an unfortunate reality that many companies are forced to live with. The AR Teams in these companies have to meander through tons of Excel sheets that make the already complex AR function more tedious, mundane and prone to human errors. Moreover, they are stuck and are forced to spend a more than significant amount of their time doing repetitive manual processes that are error prone. The result – the AR Teams keep doing this each and every day and are not able to devote much tome to focus on value-driven data analysis.

AR Automation Software Solutions, such as Inebura from TanServ, can change all that and bring about a transformative change to this already complex process. By implementing such solutions, businesses can shorten the invoice-to-cash cycles, reduce costs, improve process visibility, get intelligent analytics, track key AR metrics, release additional liquidity and above all boost productivity, reduce inefficiency, expedite the payment process and contribute towards maintaining a healthy cash flow with predictable, highly accurate payment cycles. In this blog, we will guide you through the various steps businesses can take to automate the AR process – a sort of Hitchhiker’s Guide to AR Automation. Let’s dive in…

STEP 1: TALK TO ALL PARTIES INVOLVED:

The first step is to have a discussion with everyone that is involved in the Accounts Receivable Process to acquire a complete and thorough understanding of the workflows. This discussion is crucial as it will help decide the required level of customization of the AR Automation Software to meet your business’ specific requirements. Moreover, it will also help build in specific functionalities that your business will need – such as, dispute management, automatic invoice submission, GRN functionality, CN/ advance etc. Apart from the AR Team, you might also want to bring in your IT Team and other colleagues for the discussion. Additionally, you might even think of involving your customers to get their inputs as well.

STEP 2: CLEARLY STATE THE OBJECTIVES OF AUTOMATING THE AR PROCESS:

The 2nd step is a precise statement of what you are hoping to achieve when you transform the entire AR Process with AR Management Software. This is crucial specially when people are wary and concerned that implementation of automation and AI solutions can take away their jobs. So a precise articulation of the objective becomes so very important – the objective could be that the organization is eyeing the next phase of growth and implementing such a solution is absolutely essential; or, the organization wants to give their finance teams greater responsibilities and make a strategic impact; or, the organization wants to take away the load of mundane, tedious, and time-consuming manual jobs in order to achieve a better work-life balance; or…

STEP 3: INTEGRATION OF ERP:

The next step is to integrate your existing Enterprise Resource Planning (ERP)with your choice of AR Automation Solution. And to ensure/p that this happens smoothly and efficiently,

Original Source: https://inebura.com/blog/the-hitchikers-guide-to-implementing-ar-automation

Comments

Post a Comment

Popular posts from this blog

Blockchain Sips on the Future with AR Automation

Huh!... Blockchain and AR Automation? What’s the connection? This would be the question on the minds of most of us because when hear the term ‘blockchain’, we almost immediately think of cryptocurrency (Bitcoin, Ethereum…). Well, there’s more to blockchain than just cryptocurrency. In fact, blockchain offers tremendous opportunities for multiple applications, and one such potential application is in the  management of Accounts Receivable s, as part of the e-invoicing process. For any business, the current invoicing process involves delivery of invoices (either online or offline), followed by a reconciliation process against POs & purchasing system data, and finally payment. This, already long process, is slowed down by the need for approval and review at every stage. While automation of e-invoicing helps deliver invoices faster, and businesses are looking at automating payment processing as well, there are still several ways to increase accuracy and speed. And one key way is Bl...
Read more

Maximize Profits with Automated Revenue Management

Efficiently and effectively managing the accounts receivable process is a tedious and a time-consuming job. For CFOs and their finance teams, optimizing accounts receivable is one of the three cornerstones of efficient working capital management that plays an important role in freeing up cash that’s hiding in the business processes. Organizations that use conventional AR Management Processes are perpetually struggling to chase, collect payments and reconcile payments and for that they spend a significant amount of time going through multiple spreadsheets to track information and deliver reports on key AR Metrics. The highly manual processes bring about frequent errors that lead to payment disputes, which in turn lead to either late payment or bad debt.  If you can identify with the above scenario then Accounts Receivable Automaton Software is the solution that you definitely need. The software will streamline the entire invoice-to-cash-cycle so that you improve your collection pote...
Read more

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 li...
Read more