Your Virtual Credit Manager

FEBRUARY 7, 2023

Such a process also brings more certainty to the accounts receivable (AR) asset. Looking around us, the Amazons, Netflixes, and HubSpots of the world were billing and charging clients automatically, while our business’s billing and collections looked pretty much the same as it had been done before computers.

AR Automation 130

AR Automation Accounts Receivable (AR) Credit and Collections Bad Debt 130

Your Virtual Credit Manager

MARCH 19, 2024

If all your customers paid promptly — by the time the invoice was due — you would not need to do any collection work. Collections is a reactive process. The amount of collection activity with which you are tasked is directly proportional to your customers’ payment habits.

Bulk Transfer 100

Bulk Transfer Credit and Collections Bankruptcy Third Party Collections 100

Your Virtual Credit Manager

MARCH 5, 2024

Finding the time and resources to accomplish all the collection activities required to do a good job is a constant challenge. Most small companies come up short because when there isn’t a dedicated employee responsible for credit and collections, the owner or CFO have more important things to do.

Past Due Invoices 100

Past Due Invoices Credit and Collections Collector Accounts Receivable (AR) 100

Lockstep

JUNE 15, 2022

For B2B businesses, credit management is essential for accounts receivable (AR) management success. Proper, healthy credit management allows for steady cash flow, better collections management and a manageable days sales outstanding (DSO). . Getting Started . External and Supporting Data .

AR Automation 91

AR Automation Bad Debt DSO Accounts Receivable (AR) 91

Your Virtual Credit Manager

OCTOBER 2, 2024

Accounts Receivable (AR) reflect a promise of payment at a future date. Though a paper asset, AR competes with Property, Plant and Equipment as well as Inventory for being the largest line item on a company’s balance sheet. Who performs the Credit & Collection activities — you or the finance company?

Past Due Invoices 130

Past Due Invoices Credit and Collections Deductions Accounts Receivable (AR) 130

Your Virtual Credit Manager

JULY 16, 2024

Once an order has been approved and fulfilled, the primary objective in terms of Accounts Receivable (AR) management is getting paid. Keeping these latter two groups under control requires collection efforts. Collections becomes more challenging when the customer objects. Some customers will always pay on time.

Collector 100

Collector Accounts Receivable (AR) Past Due Invoices Credit and Collections 100

Your Virtual Credit Manager

SEPTEMBER 10, 2024

To optimize the order-to-cash (O2C) process, it's crucial to understand the significant role Credit and Collections plays. This function must collaborate closely with sales, fulfillment, shipping/logistics, and accounting, all of which are integral to converting an order into cash.

Credit and Collections 130

Credit and Collections DSO Deductions Accounts Receivable (AR) 130

Your Virtual Credit Manager

DECEMBER 19, 2023

If you are an executive at a small or mid-sized business, chances are you are in the process of putting together a budget for 2024, or have already done so. Maybe you have factored in an incremental improvement in DSO, but how much thought have you given to how you are going to meet that budgeted goal?

DSO 130

DSO Third Party Collections Credit and Collections Deductions 130

Your Virtual Credit Manager

APRIL 9, 2024

There has always been a strong correlation between the cost of funds and accounts receivable (AR) management. Any delays in receiving payments from customers can, therefore, have a more pronounced effect on a company's bottom line profits. Where Are Interest Rates Headed? it just might help them pay you sooner.

Credit and Collections 130

Credit and Collections Accounts Receivable (AR) Credit Card Payments Default 130

Your Virtual Credit Manager

APRIL 11, 2023

Accounts Receivables (AR) require active management. Any O2C friction that results will ultimately have a negative affect on AR performance. Photo by Elisa Ventur on Unsplash When a company’s AR under-performs, the consequences are substantial. Here’s more on Credit Checks.

Bad Debt 130

Bad Debt Credit and Collections Accounts Receivable (AR) Days Sales Outstanding 130

Your Virtual Credit Manager

JANUARY 9, 2024

Then last week we looked at credit hold best practices. From a credit management perspective, these are largely reactive topics. In fact, once you decide to sell a customer on open credit, most of the accounts receivable (AR) management tasks that follow have a reactive component.

Credit and Collections 130

Credit and Collections AR Aging Accounts Receivable (AR) Deductions 130

Your Virtual Credit Manager

SEPTEMBER 12, 2023

Effectively managing accounts receivable (AR) is essential for a company's financial well-being. Poor receivables performance affects cash flow, and it is no secret that cash flow problems are the leading cause of business failures. Credit evaluations, however, often take time. Offer ends 9/30/23.

Credit and Collections 130

Credit and Collections Bad Debt Accounts Receivable (AR) Deductions 130

Your Virtual Credit Manager

JUNE 27, 2023

Some business customers are easy to deal with, others not so much. Some have good credit, others are clear risks. No two are alike, but they do tend to fall into some common groupings. If a Faithfully Tardy customer runs into cash flow problems, you are likely to see them extend their payment cycle even further.

Collector 26

Collector Credit and Collections High-Risk Accounts Accounts Receivable (AR) 26

Your Virtual Credit Manager

JULY 25, 2023

Turning your inventory over faster and your payables slower will add cash to your balance sheet, as will raising capital by selling shares in your company or getting a loan or line of credit. The other option you have involves improving the performance of your accounts receivable (AR).

Best Possible DSO (BPDSO) 130

Best Possible DSO (BPDSO) DSO Cash Forecasting Credit and Collections 130

The Esker Blog

DECEMBER 29, 2022

Close-up of business document in touchpad lying on the desk, office workers interacting in the background. In Part 1 of the Rethinking Receivables blog series, we highlighted four strategies that all finance leaders should prioritize in 2023 in order to maintain a healthy cashflow and resilient business model. Why AR automation?

AR Automation 98

AR Automation Accounts Receivable (AR) Cash Forecasting Credit and Collections 98

Lockstep

JUNE 1, 2022

As the Federal Reserve tightens interest rates at the highest level in over 20 years, it’s a good time to review your manual accounts receivable (AR) processes to seek out your unresolved cash traps. It’s no surprise that rising interest rates are causing companies to evaluate their AR and cash position. .

AR Automation 78

AR Automation Accounts Receivable (AR) DSO Credit and Collections 78

Emagia

MARCH 3, 2025

The Accounts Receivable (AR) Process Cycle is a fundamental component of a company’s financial operations, encompassing the series of actions taken to manage and collect payments owed by customers for goods or services provided on credit. Electronic invoicing helps in quick delivery and tracking.

Days Sales Outstanding 40

Days Sales Outstanding DSO AR Reporting Credit and Collections 40

Your Virtual Credit Manager

APRIL 4, 2023

With a growing number of experts predicting a recession to hit later this year, and inflation and interest rates remaining at elevated levels, squeezing every dollar out of your investment in Accounts Receivable (AR) is more important than ever. What constitutes optimization of a company’s AR?

Past Due Invoices 100

Past Due Invoices Credit and Collections Deductions Accounts Receivable (AR) 100

The Esker Blog

JANUARY 10, 2023

The world of accounts receivable (AR) is still evolving as some companies transition back to office life, while many continue to operate in a new hybrid environment. What skills and technology do AR teams need to deliver strategic value? What accounts receivable goals should you be reaching for?

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AR Aging Accounts Receivable (AR) Credit and Collections Past Due Invoices 95

Lockstep

APRIL 13, 2022

Is your AR Aging creeping beyond resolution? Are you even able to review and report on your aging accounts receivable? The role of accounts receivables (AR) teams is increasingly important as the backbone of your organization’s financial health. Document Activities . These include: .

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Accounts Receivable (AR) AR Automation AR Aging Credit and Collections 52

Fundera

MARCH 26, 2018

And among those fluctuating factors might be a minimum credit score for loan eligibility. But for the vast majority of small business loans , the lender will at least look at your credit score. Credit scores are a crucial factor in the loan underwriting process, since they help determine how trustworthy a borrower really is.

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Credit Scoring Credit and Collections Small Businesses Accounts Receivable (AR) 71

Emagia

NOVEMBER 2, 2023

Beyond ChatGPT: Understanding the Trends of Evolving Generative AI For Finance Beyond ChatGPT: Unlocking the Power of GenAI in Billing Beyond ChatGPT: Unlocking the Power of GenAI in Receivables Collection Generative Artificial Intelligence (GenAI) is generating significant buzz in today’s business landscape.

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Cash Applicator Accounts Receivable (AR) AR Automation Order to Cash 52

Gaviti

APRIL 18, 2024

As an assessment and diagnostic tool, it’s hard to overstate the importance of your company’s accounts receivable (AR) collections aging report. What Is an AR Aging Report? This report is a valuable tactic to stay on top of cash flow and improve short-term collections forecasting.

AR Aging 52

AR Aging Credit and Collections Bad Debt Allowance for Doubtful Accounts 52

Emagia

JUNE 19, 2023

An invoice is a document that provides information of products and services provided to a client. Traditionally, invoicing has printing and mailing physical invoices, but those are very costly. An invoice details the terms of the payment, the deadline for making payments, and the means of payment that are accepted.

AR Automation 52

AR Automation Past Due Invoices Accounts Receivable (AR) Days Sales Outstanding 52

billtrust

OCTOBER 5, 2022

Pros and cons of handling accounts receivable remotely How do you streamline accounts receivable & remote work? Automating your accounts receivable processes. If you’re like most businesses, your accounts receivable (AR) process could use a little streamlining.

Accounts Receivable (AR) 52

Accounts Receivable (AR) Credit and Collections AR Automation Credit Card Companies 52

Emagia

AUGUST 19, 2024

Generative AI (GenAI), a more recent evolution in artificial intelligence, is poised to redefine the Finance and Accounting (F&A) landscape, particularly in areas like Order-to-Cash (OTC) and accounts receivable (AR) management.

Cash Applicator 52

Cash Applicator AR Automation Accounts Receivable (AR) Days Sales Outstanding 52

Emagia

JULY 3, 2023

Cash Application Automation for True Straight-Through Processing It takes a lot of human effort for your internal accounts receivable (AR) personnel to manually match payments to customers’ accounts. Consider using cash application software and AR automation to simplify this procedure and reduce manual labor.

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Automated Cash Application Cash Applicator Days Sales Outstanding AR Automation 52

billtrust

DECEMBER 20, 2022

Once your invoice is received, it’s time to get paid quickly. Customers pay with paper checks or through electronic payment sources such as ACH, (virtual) credit cards, SEPA, accounts payables portals, etc. AR teams then receive the payment data from the banks. Credit remains tied up, and collectors are unaware.

AR Automation 52

AR Automation Digital Lockbox Cash Applicator Collector 52

Your Virtual Credit Manager

JANUARY 24, 2023

Overstate your Accounts Receivable (AR) balance causing problems with auditors and reductions in its collateral value if pledged as security in a financing (borrowing) agreement. This is because upwards of 95 percent of short payments are self-inflicted wounds. If the customer is correct, issue a credit memo.

Deductions 130

Deductions Accounts Receivable (AR) Credit and Collections Invoice Amount 130

Your Virtual Credit Manager

SEPTEMBER 13, 2022

Should you confirm that the customer is indeed correct, the deduction is removed from the Accounts Receivable (AR) ledger via a credit memo. If not approved, there should be an attempt to collect the disputed amount to avoid diluting profits, and if not collected, the deduction should be cleared by a bad debt write-off.

Deductions 130

Deductions Credit and Collections DSO Accounts Receivable (AR) 130

Your Virtual Credit Manager

DECEMBER 24, 2024

Photo by CDC on Unsplash Credit & Collection results suffer greatly from lack of attention and expertise. Perhaps more than any other SMB function, Accounts Receivable (AR) Management gets put on a back burner because it is nobody’s prime responsibility. Need help improving cash flow?

Credit and Collections 130

Credit and Collections Collector Bad Debt Accounts Receivable (AR) 130

Your Virtual Credit Manager

JANUARY 21, 2025

Large swaths of the order-to-cash (O2C) process involve credit and collection activities. Broadly defined, the credit’s contributions involve approving new customers for open terms and new orders at the front end of the O2C cycle. Your Virtual Credit Manager is a reader-supported publication.

Order to Cash 130

Order to Cash Credit and Collections Bad Debt Accounts Receivable (AR) 130

Emagia

DECEMBER 3, 2024

Introduction to Writing Off Accounts Receivable In the realm of financial accounting, managing accounts receivable (AR) is crucial for maintaining a company’s financial health. However, not all receivables are collectible, leading businesses to write off certain amounts.

Accounts Receivable (AR) 40

Accounts Receivable (AR) Allowance for Doubtful Accounts Bad Debt Credit and Collections 40

Your Virtual Credit Manager

MARCH 11, 2025

Businesses have been digitizing ever since the introduction of accounting software in the 1960s. Over the past quarter century, these tools have become much more robust as it relates to O2C activities, but still do not provide a unified solution that addresses all the activities performed by credit and collections as well as the AR function.

Days Sales Outstanding 130

Days Sales Outstanding Credit and Collections DSO Accounts Receivable (AR) 130

Emagia

FEBRUARY 9, 2025

Enter automation a game-changer for financial operations, particularly in areas like Accounts Receivable (AR), Accounts Payable (AP), and Treasury transactions. How Does Automation Transform Accounts Receivable (AR)? How does automation improve accounts receivable processes?

Transactions 52

Transactions Accounts Receivable (AR) Credit and Collections 52

Emagia

DECEMBER 30, 2024

Accounts receivable (AR) is a critical component of a company’s financial health, representing the outstanding invoices or money owed by customers for goods or services delivered but not yet paid for. Efficient management of accounts receivable ensures steady cash flow and minimizes the risk of bad debts.

Days Sales Outstanding 40

Days Sales Outstanding DSO Credit and Collections Bad Debt 40

Emagia

FEBRUARY 5, 2025

In the realm of accounts receivable (AR), deductions are one of the most common yet challenging issues that businesses face. While some deductions are valid and aligned with the terms of the contract, others may be disputed or wrongly applied, leading to complexities in cash flow and revenue recognition.

Deductions 40

Deductions Revenue Recognition Accounts Receivable (AR) Days Sales Outstanding 40