Automating Budget Accounts Receivable – An Executive Perspective
Budget Accounts Receivable Automation
The first phase of automating accounts receivable entails setting up the system properly. This involves setting up customer accounts, specification of receivable categories and subcategories, defining payment terms, inputting appropriate customer billing/payment information, and designating or setting up dunning procedures.
Complete Tools Installation The next phase involves completing the automation tools installation. Executives in finance should see to the installation of various tools used to implement automated accounts receivable, such as: OTC web portals and software, ledgers, customer relationship management (CRM) applications and software, accounting systems, customer portals, payments platform, and payment gateways.
Automate Invoices Document The third phase involves automating the customer invoicing process and document flow. At this stage, finance executives should ensure that all customer invoices and associated documents are generated, complied and stored electronically, in order to automate customer invoicing and document processing for accounts receivable.
Integrate Systems The fourth phase involves integrating various automated systems used in accounts receivable with other applications and software. This includes Customer Relationship Management (CRM) software, eCommerce platform, fax and email services, payment gateway, payment processing software, payment processor, invoicing portal, back-office financial systems, and OTC systems.
Analyze Customer DataThe fifth phase involves leveraging the customer data gathered from automated accounts receivable. Accounting executives will now be able to employ advanced analytics and machine learning algorithms to identify and analyze customer behavior patterns, detect errors, fraud, and discrepancies in customer accounts, gain greater insight into customer purchase patterns and payment habits, and suggest strategies for improving current accounts receivable procedures.
Audit and Monitor The sixth phase entails auditing and monitoring the automated accounts receivable system on an ongoing basis. Executives should regularly audit customer invoices and other documents, monitor customer payments and corresponding delayed payments, respond proactively to customer payments and dues, and set up system to safeguard against unauthorized invoices, discrepancies and other erroneous entries.
With the right automation tools in place, executives in the finance department can leverage automated accounts receivable to streamline and improve OTC processes. Automating accounts receivable effectively can help enterprises reduce manual effort in tracking and managing receivables and drive cost savings, while also providing greater transparency and accuracy.
