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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.
These types of reports include cash flow forecasting, aging reports, DSO calculations, and A/R performance. Accounts receivable automation software , in contrast, refers to a solution that automates the manual tasks of the accounts receivable processes and optimizes them to improve cash flow. A/R performance.
There are a myriad of issues that can affect collections. That’s why it is important to recognize when your collection practices need adjustment, how to diagnose the problem, and then implement solutions that address the problems you have identified. If DSO is rising, you are falling behind.
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