The Costs Of Not Using An Accounts Receivable Collection Software Solution
AR COLLECTIONS SOFTWARE SOLUTION
For any organization with an order to cash system, the accounts receivable (AR) collections process can represent an enormous challenge with potentially significant costs if not properly managed. In todays environment, spreadsheets, manual processes, and legacy solutions are no longer enough to effectively manage the complexities of this process, yet many organizations are still not taking advantage of more modern AR collection software solutions. While there are many benefits to using specialized software solution, companies must consider the risks associated with not using one.
Companies lose time and money when they are not using software solution. Whether it is related to billing and invoicing, leaving money on the table as customers take advantage of payment terms, or not taking aggressive enough action to recover receivables in timely manner, manual systems are inefficient and prone to errors. Microsoft Excel, in particular, is often used for AR collection tasks and tracking, yet these systems are easily miscalculated or manipulated and not easily scalable. Furthermore, relying on manual systems to track, trace, and recover receivables costs valuable staff time and resources.
Additionally, companies that are not using an AR collection software solution are missing out on the benefits of data analytics. specialized software system allows firms to gain granular view of customer accounts and payment patterns, helping them adjust credit terms or recognize bad debt accounts. They can also make proactive decisions in order to effectively recognize delinquencies, send delinquent notices to customers, assign accounts to collection agents, and take aggressive actions that would otherwise be missed with manual system.
Now more than ever, companies must think beyond cash flow and liquidity towards data-driven decisions to minimize bad debt and maximize collections. Organizations must embrace specialized software solutions to keep up with the dynamics of their customers? payments and optimize their accounts receivable systems. This requires taking close look at technology solutions and reimagining the AR collections process. Failure to do so may result in an additional burden on the balance sheet.
