Simplifying AR Management: A Smarter Approach

 Managing accounts receivable doesn’t have to be complex. A proactive approach—combining technology, data insights, and efficient communication—can make collections smoother and reduce outstanding dues. Learn how to simplify AR management for long-term success.

WHAT IS ACCOUNTS RECEIVABLE AUTOMATION?

Accounts Receivable Management, in simple words, is the practice of obtaining monies from clients/ customers for products/ services within a given period of time. Organizations use AR Management to ensure that every step involved in the payment collection process is properly tracked and managed. The process is a vital component of building liquidity and profitability and avoiding bad debts – and it involves many more things than simply receiving payments on invoices.

A powerful and efficient AR Management Process can, in fact, make the difference between dwindling capital and a successful business. It helps companies maintain a healthy cash flow, and is paramount for any company’s long-term success.

However, the CURRENT MANUAL & PAPER-BASED PROCESSES LIE AT THE CORE OF ACCOUNTS RECEIVABLES INEFFICIENCIES:

  • Paper-based processes slow down the whole invoice-to-cash cycle –essential tasks, such as generation of invoices, starting dunning campaigns, reconciling accounts etc. take a lot of time and the help of multiple teams.
  • Manual & paper-based invoicing process results in a lot of extra work and introduces many points of failure that can naturally lead to collection delays.
  • Manual processes do not give AR Teams the complete picture of the status of open receivables and their cash flow across the order-to-cash cycle.
  • With a manual process, reports on collection KPIs, such as DSO, working capital, AR aging etc. are a tedious process.
  • Moreover, whether intentional or unintentional, human bias during analysis can produce skewed predictions about when to expect customer payments or when to press harder for payments. These errors and/ or biases can diminish incoming cash and also take a lot of time to fix.
Read More: https://inebura.com/blog/a-simple-way-to-transform-your-accounts-receivable-management-process

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