In ten years’ time, companies will probably still be working towards faster processing and enhanced business intelligence through automation and artificial intelligence (AI). It will be the new normal to store data in a single digital repository so that accounts receivable (AR) teams have easy access to real-time, accurate data for matching payments, deduction handling, fast collections and data-driven business intelligence with improved reporting capabilities.
Industry pioneers are constantly looking forward to solutions that are adaptable to changing trends and market requirements. Cost savings, improved cash flow and a reduction of manual errors are the drivers of the financial health of any organisation. With flexible and forward-looking technology, businesses can optimise their cash flow and focus on making critical decisions backed by reliable data.
To control AR systems, it is essential to design a long-term, outcome-based process. The success of the digital transformation of AR depends on a seamless implementation and integration of new technology with the company’s existing technology. Finance professionals should focus on automating AR to streamline everyday operations and manual tasks.
Challenges and the drive towards efficiency
While accounts receivable processes have changed significantly over the past decade, there is still a great deal of scope for further evolution. AR teams today still carry out many repetitive tasks manually. These include remittance data aggregation, data key-in, cash posting and accessing credit data The result is minimal focus on the business-critical, high-value functions of actual credit decision-making and collections correspondence with high-risk customers. Manual processes tend to be time-consuming and error-prone, impacting exception handling and error correction, which increases operational expenses and affects overall profitability.