Automating A/R process will reduce inefficiencies. Similarly, A/R automation will eliminate manual data entry errors and reduce transaction time. Key performance indicators (KPIs) and defined capital metrics are also important. Learn how you can free up cash flow and strengthen working capital.
We want to be paid today and put that cash to work immediately. Waiting for checks to be mailed, received, then processed or similarly, processing through the Automated Clearing House (ACH) can take time, tying up your receivables and kills your balance sheet.
Inefficient Accounts Receivable given the cost of capital, increases payment-processing fees, increases Days Sales Outstanding (DSO) and the potential of bad debt. Bad debt is the final straw of a painful customer transaction meaning; your company will never collect that revenue.
According to a detailed three-part survey of CFOs conducted by Ernst and Young*, CFO's feel now, more than ever before that there are four different initiatives or tasks they must perform in order to be effective. The importance of each of these four had become a higher priority compared to just three years earlier.
Transforming financial processes doesn't mean enlisting the dreaded trifecta CapX,Consultant,Long Project. Watch, learn how to shift paradigms without them!
Accounts Receivable Process website get more info