Achieving Effective AR Integration

AR integration is the ideal solution for banks and corporations eager to improve accounts receivables processes. New technologies that integrate with existing lockbox platforms and treasury legacy systems can streamline AR department tasks and deliver organizational benefits for annual performance improvement.

The 3 R’s of Effective AR Integration

An approach to accounts receivables where payments, invoicing and reporting are siloed results in inconsistent department processes. But a comprehensive, integrated approach can maximize the output and effectiveness of corporate AR departments, generating new revenues and opportunities for growth.

The three R’s of successful AR integration include:

  1. Reducing DSO Cycle Time – DSO measurement is directly tied to how quickly paid invoices are turned into cash flow. If organizations rely on slow processes, it’s likely that DSO will remain high and there won’t be much profit margin growth. Integrated AR provides the elements necessary to see a measurable decrease in DSO cycle time, enabling organizations to more effectively manage working capital for re-investment and other business opportunities.
  3. Resolving Invoicing Disputes Faster – No matter the business, any organization that bills for services will face a disputed invoice at one point or another. It’s beneficial to incorporate a strategy for contested invoices into overall AR practices. The fact of the matter is that disputed invoices slow down DSO and halt payments – a faster resolution process that is integrated with payment and presentment can speed things up for both department personnel and customers.
  5. Reporting that Delivers In-Depth Insights – Reporting can provide C-level financial executives and key decision makers with in-depth, granular insights regarding the effectiveness of AR integration and department tasks. Customer usage, end-of-day cash analysis and overdue invoice reports can clue organizations in to how well system integration has worked, and the areas they can improve upon.

PAYBOX® Integrated Receivables is an innovative reverse lockbox solution that seamlessly integrates with existing AR platforms to simplify day-to-day AR processes. PAYBOX® uses a combination of:

  • Electronic invoice presentment that allows customers to log into a secure portal to access and settle invoices
  • Online payments that enables users to manage invoice due dates, control how much they pay and the form of payment
  • Invoice approval and adjustment features that replicate customer workflows to allow for easy reviewing and alerts if an invoice has been adjusted
  • Downstream discounts and financing to automatically facilitate payment discounts and supply chain financing

Direct Insite is an industry-leader in integrated AR solutions and technology. Our platforms don’t require heavy system migration, but are designed to fit seamlessly with existing AR systems.

Ready to learn more? Contact us today.

AR Strategies