Risky Propositions: The High Cost Of Not Using Software For Dispute Management And Claims In Accounts Receivable
DISPUTE MANAGEMENT AND CLAIMS IN AR APPLICATION
Without viable dispute and claims management system in place, Accounts Receivable departments are potentially exposed to raft of financial risks. These include lost revenue, credit risks, and even reputational damage. In the competitive world of business, AR functions must leverage technology to improve cost management, reduce workloads and ensure greater visibility of dispute and claims activities.
Finance executives looking for an order-to-cash software solution must contemplate the dangers of utilizing inadequate systems. When dispute management and claims processes remain manual, companies struggle to handle large databases of information. This leads to delays in data reconciliation, inefficient workflow and inadequate visibility of customer accounts. Risk mitigation becomes challenge and manual processes can become an enabler for fraud. Despite being arduous, cost intensive, and inefficient, manual AR operations also result in revenue leakage, with customers wrongfully credited for claims accepted due to lack of an effective automatic checking system.
Moreover, inaccurate dispute and claims management have the potential to severely impact companies credit control. With cash flow gaps due to aged accounts not identified quickly enough, businesses run the risk of credit lines getting cut by financiers, leading to unprecedented flux. With invoice processing made overly complicated and time consuming, relying on manual methods can also result in poor customer relationships and poor commercial debt collection.
In contrast, using software specific to claims and dispute management can empower companies to gain more control over their entire process. Automation enables assessment of customers’ creditworthiness faster, reducing the credit risk and making decisions based on timely and accurate information. Automated systems also facilitate faster dispute resolution, enhancing customer satisfaction.
By leveraging technology, companies can also equip themselves to generate faster cash flow and greater collection success. state-of-the-art system helps automate activities like route adjustments and manual payments, achieving quick flight times and seemingly impossible collection completion targets. This enables contacts to be made with customers with lesser cost and higher productivity.
Ultimately, failing to use software for dispute management and claims in Accounts Receivable can leave companies open to host of risks, from lost revenues to irreparable credit and reputation damage. With the right solution in place, executives can gain confidence in their dispute and claims functions, while companies can significantly enhance their cash flow and profitability.
