Your Virtual Credit Manager

JANUARY 9, 2024

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. There is nothing wrong with that.

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

Your Virtual Credit Manager

MARCH 21, 2023

Subscribe now Lessons to Be Learned Looked at from the perspective of somebody responsible for the management of a portfolio of accounts receivable (AR), the events surrounding the SVB collapse present a cautionary tale. There are occasions where selling to riskier accounts is appropriate.

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Accounts Receivable (AR) Bankruptcy Bad Debt Credit and Collections 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?

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DSO Third Party Collections Credit and Collections Deductions 130

Your Virtual Credit Manager

SEPTEMBER 26, 2023

Your accounts receivable (AR) and cash balances as of December 31, 2023, are very important numbers. Share First, Clean Out the Garbage During the course of a year, your AR will accumulate partially paid invoices, payments that have not been applied or that have been misapplied, debit memos, and credit memos.

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Credit and Collections Accounts Receivable (AR) Deductions Collector 147

Your Virtual Credit Manager

FEBRUARY 21, 2023

That certainly holds true for business processes, including the management of your Accounts Receivable (AR) and the part it plays in the order-to-cash process. If your AR is deteriorating, you better diagnose the problem as quickly as possible so you don’t incur cash flow problems and bad debt losses.

DSO 130

DSO Credit and Collections Collection Effectiveness Index Bad Debt 130

Your Virtual Credit Manager

AUGUST 29, 2023

As you review your metrics, here are five signs that there may be a problem with your collection practices: DSO Is Rising: Days Sales Outstanding is the most common metric for measuring accounts receivable (AR) performance. If DSO is rising, you are falling behind.

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DSO Credit and Collections Bad Debt Collection Effectiveness Index 130

Your Virtual Credit Manager

APRIL 18, 2023

So, how can a small business acquire high level functional expertise with its “Jack of all trades” workforce, especially in regard to managing the Accounts Receivable (AR) asset? Even so, if you are heavily selling big box retailers, they may be able to help you, especially if you have a backlog.

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Bad Debt Credit and Collections Third Party Collections Accounts Receivable (AR) 130

Your Virtual Credit Manager

OCTOBER 25, 2022

The result of timely and accurate Remittance Processing is an accurate Accounts Receivable (AR) Ledger, which provides the current status of every customer’s balance owed to you. If you have sufficient check volume, your bank’s lockbox service can help by providing a detailed remittance file.

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Credit and Collections Accounts Receivable (AR) Cash Applicator 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. This in turn creates more work for your AR team.

Credit and Collections 130

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

Your Virtual Credit Manager

JUNE 27, 2023

No two are alike, but they do tend to fall into some common groupings. Identifying the groupings within your customer accounts receivable (AR) portfolio enables you to deal with them all more effectively and efficiently. Firms that take a lot of payment deductions can fall into this category.

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

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. A structured dispute resolution process minimizes delays in payment collection.

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Days Sales Outstanding DSO AR Reporting Credit and Collections 40

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. Laissez-faire doesn’t cut it.

Bad Debt 130

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

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. Remember, a “clean” AR Ledger is the objective.

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

Your Virtual Credit Manager

MARCH 12, 2024

The profitability of customers that tend to pay significantly beyond terms or that regularly raise disputes or take payment deductions can be severely impacted. Understanding your AR portfolios dynamics will enable you to identify those customers that are on the higher-end of profitability as well as have underutilized credit capacity.

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AR Transformation Credit and Collections Accounts Receivable (AR) Order to Cash 100

Your Virtual Credit Manager

OCTOBER 17, 2023

If you have poor credit controls, you won’t be able to afford as much risk in your accounts receivable (AR) portfolio. Unacceptable risk occurs when there is a negative impact to the bottom line from taking on too much credit risk. The better your credit controls, the more risk you can assume.

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

Your Virtual Credit Manager

SEPTEMBER 17, 2024

Implement Workflow Solutions: Software as a Service (SaaS) solutions are an economical way to enhance productivity. Solutions exist for credit application processing, collections, payment deduction resolution, and remittance processing, all of which can create more time that can be used to increase your collection efforts.

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Credit and Collections Accounts Receivable (AR) Bad Debt Credit Risk 100

Your Virtual Credit Manager

JULY 25, 2023

The other option you have involves improving the performance of your accounts receivable (AR). Chances are there is a substantial amount of liquidity that is trapped in your AR portfolio. Typically, invoices with discrepancies get paid two to three weeks later than those that are accurate.

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

Emagia

FEBRUARY 20, 2025

Automating accounts receivable (AR) is a strategic move for businesses aiming to enhance cash flow, reduce manual workloads, and improve overall financial efficiency. Receivables Processing : Streamline invoice generation and payment processing. Cash Application : Accelerate the matching of payments to invoices.

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AR Automation Credit and Collections Cash Applicator DSO 40

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 AR Automation 95

Emagia

MAY 18, 2023

Prepaid expenses can also ease the stress of payment for upcoming accounting periods. Prepaid expenses could potentially come with tax advantages, but businesses must abide by the rules controlling tax deductions. Facilitating tax reductions By using prepaid expenses, businesses can better manage their future tax deductions.

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Accounts Receivable (AR) Deductions 52

Your Virtual Credit Manager

MARCH 19, 2024

Whether you have automated the collection process or not, mapping out collection strategies for the different types of customers in your accounts receivable (AR) portfolio is an accepted best practice.

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Bulk Transfer Credit and Collections Bankruptcy Third Party Collections 100

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 ensures your invoicing processes are aligned with their accounts payable. Disputes and deductions.

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

Gaviti

JULY 11, 2024

Disputes and deductions. Track, code, route and resolve customer disputes and deductions quickly by identifying recurrent issues and taking a proactive approach to future issues. Streamline Your A/R Processes Today Gaviti’s accounts receivable automation solution streamlines your A/R processes and helps your team work better.

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DSO AR Automation Credit and Collections Bad Debt 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

tillful

NOVEMBER 8, 2022

Accounts receivable (AR). Accounts receivable refers to money owed to a business by third parties like customers or clients. For example, if you provide a service and allow your client 60 days to pay, the amount they owe you will be recorded under your accounts receivables until it’s paid. Net income.

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Credit Reporting Agencies Deductions Credit Scoring Credit and Collections 52

Your Virtual Credit Manager

JANUARY 24, 2023

Disputes and Deductions occur when a customer believes an order has not been satisfactorily fulfilled, or it has been invoiced incorrectly. Deductions occur when a customer pays an invoice less than the full amount (short payment) with no intention of ever making up the balance. The good news is your customer has sent you a payment.

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

Your Virtual Credit Manager

SEPTEMBER 13, 2022

Photo by Jp Valery on Unsplash Payment deductions, also known as chargebacks or short pays, happen when the customer pays less than the full invoice amount. They occur because a customer does not receive your product or service as ordered, or feels the invoice is incorrect. Many firms incur a substantial volume of deductions.

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Deductions Credit and Collections DSO 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. Generally, no.

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

Your Virtual Credit Manager

JANUARY 21, 2025

Further credit and collection contributions involve monitoring risk in the accounts receivable (AR) portfolio and collecting from customers who don’t pay on time, both of which are post-sale activities. In addition, your customer may take a payment deduction if they can’t reconcile the difference.

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

Your Virtual Credit Manager

DECEMBER 24, 2024

Perhaps more than any other SMB function, Accounts Receivable (AR) Management gets put on a back burner because it is nobody’s prime responsibility. The only time AR comes to the forefront is when there is economic turmoil and an increased risk of bad debt losses. What else can be done?

Credit and Collections 130

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

Emagia

FEBRUARY 5, 2025

In the realm of accounts receivable (AR), deductions are one of the most common yet challenging issues that businesses face. A deduction occurs when a customer reduces the amount they owe on an invoice, typically due to reasons such as billing errors, pricing discrepancies, or discounts taken without authorization.

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

Your Virtual Credit Manager

MARCH 11, 2025

Businesses have been digitizing ever since the introduction of accounting software in the 1960s. Since then, there has been continuous improvement towards the holy grail of straight-through-processing (STP) across the order-to-cash (O2C) process.

Days Sales Outstanding 130

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

Emagia

FEBRUARY 14, 2025

Understanding Integrated Receivables Automation Solutions An Integrated Receivables Automation Solution is a technology-driven platform that consolidates various accounts receivable (AR) processes into a unified system. Why is Receivables Automation Important?

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Days Sales Outstanding DSO Credit and Collections Cash Applicator 40

Emagia

DECEMBER 30, 2024

In today’s fast-paced business environment, efficient management of accounts receivable (AR) is crucial for maintaining healthy cash flow and ensuring organizational profitability. AR automation emerges as a transformative solution, streamlining financial transactions between companies and their customers.

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AR Automation Accounts Receivable (AR) Days Sales Outstanding Credit and Collections 40