Issues In Ar Management

Consider the following scenarios:

1. Your Ar Teams Have To Struggle Through Several Manual Processes, Such As Sending Out Reminders And Dunning Letters Built On Excel And Outlook.

In conventional AR Management Systems, sending out manual reminders to customers about overdue payments and sending out dunning letters are highly dependent on human intervention. The things that helps your AR Teams follow this process are Excel sheets, mails on Outlook, and calendars on your computer. Just imagine the impact if human error in this manual process misses out on either an important set of bills or reminders.

2. Your Ar Teams Are Increasingly Dealing With Incoming Requests For Statements, Invoices, And Documentation. 

In conventional AR Management Systems, your AR Teams, instead of sending out scheduled and proactive mails or reminders to customers, are flooded with requests from customers to send data and information that should have been sent out proactively in the first place.

3. Your Ar Teams Are Chasing Down Data To Get An Accurate And 360o View Of Your Open Receivables.

In managing the AR process, most AR Teams employ a highly disorganized set of systems, such as spreadsheets, reports and other software applications. This implies that communicating with customers becomes highly laborious as it involves using several channels, including phone, email and WhatsApp. Moreover, since the documentation pertaining to invoices is spread across siloed systems, it makes the required information hard to find. This makes the tracking of collections extremely challenging. And your AR Teams have to spend a lot of time collecting information, the time they could have utilized to provide customer service and other value-added tasks. This is one of the major reasons for communication failure and necessitates intervention by senior management to resolve issues.

4. Your Ar Teams, Because Of Largely Depending On Highly Manual Work, Deal With Frequent Errors In Invoice Numbers, Invoice Value Etc.

Manual handling of invoices and documentation related to invoice generation increase the likelihood of errors, such as calculation mistakes, attaching documentation etc. This leads to payment discrepancies, customer confusion, time-consuming manual collections, and most importantly customer dissatisfaction.

Original Source: https://inebura.com/blog/do-gaps-issues-in-ar-management-really-trouble-you

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