Many accounts receivable and credit managers understand the advantages that Accounts Receivable (AR) automation has to offer. But it’s not as easy as simply selecting a provider and implementing a solution. Before an AR solution can hit the ground running, a critical hurdle must be cleared; getting buy-in from senior management and key stakeholders!
Today’s ever-evolving business landscape demands that executive management focus their attention on streamlining business functions as much as possible. This places greater emphasis on things like cash flow, reporting and analytics, regulatory compliance, and customer retention.
As a result, members of the C-suite have a greater interest in the purchasing of solutions related to financial and administrative functions. It’s the responsibility of AR and credit managers to demonstrate how automation will not only modernise the AR department, but translate into benefits for the entire organisation.
This is where the business case comes in, providing justification for undertaking the project and presenting the benefits, costs and risks of alternative options. Finally, it provides a rationale for the preferred solution.
By building a well-thought-out business case for AR automation, AR and credit managers will dramatically increase their probability of convincing the C-suite of the project’s value and importance and getting the green light to proceed.
But where to start? Read on…
Before you begin building your business case, take time to consider these four key questions and determine your key requirements for AR automation:
Ready to start?
Here are 5 key elements to include in a winning business case:
- An executive summary that concisely delivers the urgency in addressing specific issues, how it will be done, and what benefits will be realised in addition to the costs of inaction.
- A risk assessment, which identifies and mitigates key risks to the business.
- Defined project roles, responsibilities and established accountabilities agreed with each stakeholder. Laying out roles and responsibilities in a Responsibility Assignment Matrix — also known as a RACI matrix — specifically and clearly sets the project up for success.
- A timeline for project execution and implementation.
- Defined benefits and metrics to measure success. Include a cost benefit analysis based on easily defensible assumptions, accurate numbers and includes potential impact on the bottom line. Consider that benefits can encompass more than the ‘hard’ benefits and there are often many ‘indirect’ benefits that are not part of a potential project’s budget.
Soft benefits can be any positive factor that arises from carrying out the project. Whilst sometimes difficult to define, soft benefits can be extremely valuable and indirectly contribute to financial gain i.e. increasing workplace flexibility and improving employee morale contributes to lower attrition and a reduction in recruitment and training costs.
To learn more about how to build a great business case, the stages of strategic value that AR automation can deliver and how (when done well), AR automation impacts the bottom line. Hear more about this, view our recorded webinar.
Or, for more detail you can download the whitepaper to gain valuable insights on constructing a winning business case for AR automation.
