Accounts Receivable Management APplication: A Step-By-Step Guide
Accounts Receivable Management Application
The Accounts Receivable Management Application (ARMA) is an order-to-cash solution intended to improve end-to-end customer interactions and optimize the accounts receivable process for finance executives. With streamlined processes for invoicing, collecting, and analyzing data, ARMA makes it easier than ever for any business to track, manage, and monitor their accounts receivable.
From faster cash flow and improved customer relations to decreased debt and denials, the advantages of an up-to-date ARMA are numerous. To help executives get the most out of the application, this guide will walk you through the steps to understand and successfully incorporate this valuable tool into your business.
Step One: Evaluate the Need for ARMA
The first step to using ARMA effectively is understanding its purpose. The Application is designed to assist business in obtaining and processing customer payments quickly and efficiently, without delay. By evaluating the current invoice-to-payment process, executives can determine if the automated capabilities of ARMA are required.
For example, if payments are taking long time to collect, the application may be able to help streamline the process. On the other hand, if invoices are generally paid on time and in full, there may not be need for ARMA.
Step Two: Identify ARMA’s Features and Benefits
Once the decision to proceed with ARMA has been made, executives should familiarize themselves with the application’s features and benefits. Leveraging automated tools like ARMA can save business time and money as well as increase efficiency, productivity, and accuracy. The application implements number of features, such as automated data entry, credit checking, and invoicing, which can simplify routine tasks. Additionally, executives can monitor their accounts receivable and track payments in real-time, enabling timely and informed decision-making.
Step Three: Investigate Key Performance Indicators
To truly understand the value of ARMA, finance executives should analyze key performance indicators (KPIs) related to their accounts receivable process. This analysis can include looking at the time it takes to enter invoices, the percentage of on-time payments, the number of days between invoices and payments, and the cost of manually processing invoices. Tracking these KPIs can provide insight into the effectiveness of ARMA and help executives optimize their accounts receivable management process.
Step Four: Implement
Once all the necessary preparations have been made, it is time to implement the application. Executives should determine who will be responsible for managing the accounts receivable process and oversee the implementation. Executives should also create plan for integrating ARMA with existing systems, such as bookkeeping and accounting software, to ensure seamless integration between systems.
Step Five: Monitor and Refine
Using ARMA effectively requires continuous monitoring and refinement. Executives should regularly review the KPIs they identified in the third step to track progress and efficiency. Evaluation should also be consistently conducted to identify areas where the application can be improved, such as automating more processes or streamlining invoicing. Refining ARMA’s use ensures that the application remains an asset for the business.
Conclusion
An effective accounts receivable management application can streamline processes and improve cash flow, customer relations, and cost control. By following this step-by-step guide, executives can take advantage of ARMA’s features and benefits, helping their business lower operating costs and increase efficiency in the order-to-cash process.
