Optimizing Operational Performance: Leveraging Accounts Receivable Automation Solutions
3 WAY MATCHING ACCOUNTS RECEIVABLE
Finance executives now more than ever are exploring innovative ways of improving their companies operational performance. With the dramatic increase in automation solutions, along with accounts payable automation software, executives have had to evaluate options for maximum capability and efficiency. Three-way matching of accounts receivable (3WMAR) offers C-suite personnel the ideal approach to optimizing operational performance.
3WMAR identifies discrepancies within an organizations accounts receivable cycle, which can cause costly transactional errors and delays. Utilizing advanced technology, 3WMAR units quickly obtain data on accounts receivable transactions, compare the data against company records, and then post the results in an efficient and timely manner. Through this real-time analysis, leaders are informed of discrepancies that may need to be addressed, allowing the Executive team the time to adjust payment parameters.
Accounts receivable automation solutions can further enhance the performance of 3WMAR, as software-driven solutions can offer flexibility and security for financial data. Introducing cloud-based or web-based platform can negate the need for manual processes, reducing latency and inaccuracies. Executives should therefore explore options for integrated seamless systems that offer rapid processing and integrated reporting. Through such solutions, personnel can be informed of the impact of potential transactions on cash flow and working capital, allowing management to more effectively plan and allocate resources.
The implementation of such robust solutions should not be undertaken lightly, as aligning software with operational requirements can prove to be complex challenge. Adopting software solution that performs an automated 3WMAR process reduces the risk of fraud, as the technology can flag underlying inconsistencies in account entries or temporal anomalies. Although transitioning to such system is significant undertaking, C-suite personnel should welcome this shift as it reduces the possibility of erroneous transactions, thus boosting operational performance and workflow.
In summation, C-suite personnel should evaluate accounts receivable automation solutions as an effective means of increasing operational performance. With the rapid advancement of technology, three-way matching of accounts receivable can be implemented through cloud- or web-based platforms. Offering flexibility and security for financial data, such integrated platforms reduce the possibility of fraudulent activity, temporal anomalies, and unnecessitate delays, allowing senior management to respond swiftly to discrepancies and ultimately control cash flow and working capital.
