December 8th, 2020 by Bri Maas
What used to be considered a back-office function has transformed into one of every organization’s largest assets: accounts receivable. Why? Because it deals with one very important asset that doesn’t appear on the balance sheet — customers.
In order to capitalize on the assets of AR, organizations need best-in-class management strategies in place. These eight strategies are excellent starting points for any business interested in achieving best-in-class accounts receivable management.
8 Accounts Receivable Management Strategies for a Best-in-Class Process
Today, too many accounts receivable departments view technology as a threat to their existing staff members rather than what it actually is — a highly specialized team member.
Go Beyond DSO to Maintain Accountability
Measuring metrics beyond DSO enables your team to track performance, hold them accountable, and achieve the results they’re searching for.
Push for e-Invoicing
Studies have validated that e-invoicing can result in cost savings between 60 and 80% compared to traditional paper-based methods.
Confirm Invoice Receipts
The most common reason customers give for making late payments is never receiving the invoice.
Follow up Early & Often
Automation tools allow you to easily achieve on-time payments via automatic friendly payment reminder emails so that no human involvement is necessary.
Optimize Team Efficiency
As much as one-third of an accounts receivable representative’s time may be spent prioritizing who to call and searching for their information.
Offer Self-Service Tools
According to Forrester, approximately 72% of people prefer self-service over phone or email support.
Use Root-Cause Analysis
Using automated accounts receivable management tools, your team can identify, track and categorize root causes for late-paying customers, deductions management and other areas.
These eight strategies are an excellent starting point for any business interested in achieving best-in-class accounts receivable management. To truly become the best, make sure to periodically review your process to ensure your approach remains successful.
It all boils down to this: Any organization that wants to modernize its accounts receivable process can do so. All it takes is a little help from technology and a willingness to evolve beyond the status quo.
Download the eBook, 8 Accounts Receivable Management Strategies to Make Your Process Best-in-Class, so that, when you’re ready to transform your process, you have all the information you need to be successful.
Posted in: Automation