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In todays fast-paced business environment, managing accountsreceivable (AR) efficiently is critical for maintaining healthy cash flow and business sustainability. The traditional methods of handling AR, including manual invoicing, collections, and payment tracking, often lead to delays, errors, and increased operational costs.
Photo by Keren Fedida on Unsplash Each business customer presents a unique set of circumstances. No two are alike, but they do tend to fall into some common groupings. Identifying the groupings within your customer accountsreceivable (AR) portfolio enables you to deal with them all more effectively and efficiently.
AccountsReceivables (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.
Within this still emerging socioeconomic framework, it’s constructive for credit executives to re-examine how they will manage risk from a holistic perspective. Here are four primary questions to ask regarding your accountsreceivable (AR) portfolio that will help you get started: 1. What are the risks?
Electronic Invoice Presentment and Payment (EIPP) platforms benefit both you and your customer, especially when your EIPP solution can communicate electronically with a wide variety of AP invoice capture platforms. Pay special attention to clients who have a history of late payments in an effort to get them to change their habits.
As a CFO or member of the accountsreceivable (AR) team, one of your top priorities is ensuring your business maintains healthy cash flow. For CFOs and AR teams, accurate forecasting is a key component in achieving financial stability, minimizing risks, and making strategic decisions.
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