8 AR management strategies to make your process best-in-class

What used to be considered a back-office function has transformed into one of every organisation’s largest assets: accounts receivable. Why? Simply because it deals with one very important asset that doesn’t appear on the balance sheet — customers.
In order to capitalise on the assets of AR, organisations need best-in-class management strategies in place.

These eight strategies are excellent starting points for any business interested in achieving best-in-class accounts receivable management.

  1. Embrace technology This strategy is the linchpin that holds the other strategies together. Technology should not be viewed as a threat to existing staff members but instead as a highly specialised member of the team.
  2. Track metrics beyond DSO Measuring KPIs beyond DSO enables your team to track performance, give them accountability, and achieve the results they’re searching for.
  3. Move to e-invoicing Studies have shown that e-invoicing can result in cost savings between 60% and 80% compared to traditional paper-based methods.
  4. Confirm invoice receipts The most common reason customers give for making late payments is never receiving the invoice. Harnessing an automation solution with e-invoicing functionalities means you no longer have to worry about this anymore.
  5. Follow up early & often Automation tools allow you to easily receive on-time payments via automatic customised payment reminder emails so that no human involvement is required.
  6. Optimise team efficiency As much as one-third of an AR representative’s time may be spent prioritising who to call and searching for their information.
  7. Offer self-service tools According to Forrester, around 72% of people prefer self-service over phone or email support.
  8. Use root-cause analysis Using automated AR management tools, your team can identify, track and categorise root causes for late-paying customers, disputes and other areas, so you can fix any problems that are making it hard for customers to do business with you.

The great news is this: Any organisation that wants to modernise its accounts receivable process can do so. All it takes is a little help from technology and a willingness to evolve beyond the status quo.

Download the eBook, 8 Accounts Receivable Management Strategies to Make Your Process Best-in-Class, so that, when you’re ready to transform your process, you have all the information you need to be successful.

Claire Barker

As Marketing Specialist for Esker UK, Claire is responsible for generating leads for Esker's business process solutions specifically within the area of Accounts Receivable through a variety of marketing channels. She has been part of the Esker family since 2019.

More Posts - Website

Follow Me:
Twitter