Your Virtual Credit Manager

JANUARY 17, 2023

There was a lot of gnashing of teeth on the part of the sales team at the beginning, but invoice accuracy improved in each subsequent month as sales began transmitting accurate pricing and terms to order processing, thereby reducing downstream disputes and payment deductions. it just might help them pay you sooner!

Credit and Collections 246

Credit and Collections Accounts Receivable (AR) Days Sales Outstanding Past Due Invoices 246

Your Virtual Credit Manager

SEPTEMBER 12, 2023

To make matters worse, invoice errors also tend to generate payment deductions (partial payments). Correcting invoices and reconciling payment deductions are essentially rework: work that is not necessary if you got it right the first time. To make matters worse, most payment posting errors will involve deductions.

Credit and Collections 130

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

Your Virtual Credit Manager

OCTOBER 17, 2023

If you are running at close to one hundred percent capacity, you should be prioritizing less risky sales over those of customers that are more likely to default or pay late — there is no need to take on risky sales. A third factor that comes into play is your production capacity.

Bad Debt 130

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

Emagia

FEBRUARY 5, 2023

If the automated AR application can alert the collection team about the probability of any payments getting overdue, they can proactively reach out to such customers to try mitigating the risk of a likely payment defaults. The process can get more cumbersome if deductions are involved.

AR Automation 52

AR Automation Days Sales Outstanding DSO Credit and Collections 52

Your Virtual Credit Manager

APRIL 11, 2023

In fact, a hands off approach will only serve to compound the weaknesses in your order-to-cash (O2C) process. Poor Credit Controls: Poor credit control practices can result in providing goods or services to high-risk accounts that are likely to pay beyond terms or even default on payments. 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

SEPTEMBER 10, 2024

To optimize the order-to-cash (O2C) process, it's crucial to understand the significant role Credit and Collections plays. This function must collaborate closely with sales, fulfillment, shipping/logistics, and accounting, all of which are integral to converting an order into cash.

Credit and Collections 130

Credit and Collections DSO Deductions Accounts Receivable (AR) 130

Your Virtual Credit Manager

AUGUST 29, 2023

These can include: Too little time spent collecting (due to other priorities or lack of staff) Lack of training and experience Order-to-cash (O2C) process breakdowns or weaknesses Credit policy too lenient Invoice accuracy issues Collection strategy not effective Economic headwinds And, the list goes on.

DSO 130

DSO Credit and Collections Bad Debt Collection Effectiveness Index 130