The Dos and Don'ts of Successful AR Management

A company's financial health is almost directly related to its AR management processes. Carelessly managing an accounts receivables department increases the chances of:

  • Lackluster financial supply chain performance
  • Poor cash flow
  • Decreasing customer satisfaction

The fact is banks and corporations can't afford to misstep when it comes to accounts receivables. The long-term results of poor AR strategies can be detrimental to organizations.

The Dos and Don'ts of Successful AR Management

The majority of AR pitfalls happen due to a lack of proper planning, strategy and technology. Unfortunately, many banks and corporations get bogged down in traditional processes that don't serve them or the customer very well.

But a few simple changes to current accounts receivables practices can benefit organizations that are focused on maintaining strong cash flow and improving customer satisfaction. Successful AR management isn't rocket science - but it does require an awareness of a few simple dos and don'ts:

DO:

  • Take Advantage of E-Invoicing - Manual invoicing is an arduous, time-consuming task that wastes both time and money, not to mention the mailing and payment delays that accompany paper-based invoices. Electronic invoicing is easier to manage and maintain, and simplifies presentment to customers. In addition, e-invoicing produces statements with greater levels of accuracy, mitigating the need to re-print and re-distribute invoices.
  • Select Easily-Integrated Technology - Automated AR solutions are an excellent account management resource, but technology that doesn't integrate with existing lockbox or company solutions can be more trouble than it's worth. When selecting an automated solution, it's helpful to be sure that technology can seamlessly integrate with current systems.

DON'T:

  • Limit Customer Payment Options - When it comes to invoice and bill settlement, remember that customers like the two C's: convenience and choice. Banks and corporations that accept payment via mail-in checks or over the phone only make invoice settlement more difficult for customers. Instead, organizations should offer a range of payment options - particularly online. A payments portal that accepts major credit cards, Automated Clearing House (ACH) payments and Electronic Fund Transfers (EFT) is easier for customers, and they're more likely to log on and pay before an invoice due-date.
  • Neglect Invoice Dispute Resolution - Challenged invoices are unavoidable for most accounts receivables departments, but how those disputed invoices are handled can say a great deal about AR management processes. If there is no protocol in place and customers have to spend hours on the phone with department personnel, frustrations can arise on both ends. Instead, departments should develop protocols to facilitate easy and efficient dispute resolution.

Time to Step Up Your AR Management Processes? Direct Insite Can Help

An industry leader in accounts receivables technology and solutions, Direct Insite has the resources to improve corporate and bank AR management strategies. Our PAYBOX® technology combines online invoice presentment, electronic payments and easy invoice resolution to streamline accounts receivables strategies.

Successful AR management starts here. Contact us today to learn more.

 

 

AR Management