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A proactive A/R approach includes linking financial data with other enterprise resource planning (ERP) data, so businesses can avoid manual tracking and gather the necessary data to accelerate payments. Automatingcashapplications also boosts cash flow by reducing errors, allowing customers to receive payment confirmations faster.
Paymentportals are not just for large B2C businesses any longer, B2B businesses of any size can benefit. In the evolving world of B2B transactions, the importance of paymentportals has become undeniable. By automating these processes, businesses can accelerate cash flow and focus on growth.
Monitor key performance indicators ( KPIs ) like Days Sales Outstanding (DSO) and collection effectiveness to track progress. Many traditional KPIs, like DSO, are not always a good indicator of collection success. Automatingcashapplication ensures: Faster reconciliation by automatically matching payments to invoices.
The most common is DSO. Automate collections actions with reminders, internal or external escalations based on predefined criteria such as payment due date or history, credit terms or aging of the invoice. Cashapplication. This measures how quickly customers pay their invoices. Collections analytics.
Importance of Automating Accounts Receivable In today’s fast-paced business environment, manual AR processes can lead to delays, errors, and inefficiencies. Automating these processes not only enhances accuracy but also ensures timely collections, thereby improving cash flow and reducing the days sales outstanding (DSO).
Streamline Your A/R Processes Today Gaviti’s accounts receivable automation solution streamlines your cashapplication and other A/R processes and helps your team work better. Make better credit decisions, lower DSO, and reconcile payments with near perfection. Schedule a demo to learn more.
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