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We often talk about the importance of having an efficient and effective collection process and how, from a process improvement perspective, collectionsautomation provides substantial benefits. Based on this industry outlook, there was staff performing collections and deduction resolution, but no credit function.
Over time, AR Ledgers unfortunately tend to collect “Clutter.” Match as many unapplied payments and unapplied credit memos to open invoices, deductions, and debit memos as possible. Write off the older, smaller deductions, debit memos, and even small invoices that will cost more to resolve than they are worth.
Disputes and deductions. Send online credit applications to existing and potential customers to evaluate customer’s creditworthiness. Get alerts in real-time of which customers are going beyond a predetermined credit threshold and reduce your risk of bad debt. Collaborate between departments to resolve disputes effectively.
The Role of AI in the B2B Collections Process To address the challenges above, many businesses have turned to B2B collectionsautomation, which automatescollections , one of the main elements of A/R that is tedious and prone to manual error. These include: Automate cash application and remittance.
Since automation improves speed and accuracy, it is far more effective at scaling than manual methods. A/R solutions in particular streamline each aspect of accounts receivable, from collections to credit management, cash application and disputes and deductions.
From an accounts receivable (AR) perspective, digitization began accelerating in the late eighties with the introduction of tools that could help with financial analysis followed by collection, deduction management, and remittance processing software in the nineties.
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