For a long time, the efforts to improve and influence the working capital have solely focused on the accounts payable (AP). This very approach is very considerable and common since a lot of organizations have good control over the AP processes. You can read more about What are integrated receivables?
This allows the businesses to decide who they pay and how they do it. In the past few years, organizations have been able to generate great efficiency and economy of scale by just centralizing the payment processes and consolidating activities into the regional and global shared service centers.
However, the attention now is being retained to accounts receivable (AR) for having an influence on the working capital. Receivables are widely recognized as such a field that is liable to undergo improvements in the coming time.
Infusing Artificial Intelligence and Machine learning into businesses has had a great influence on driving new innovations that have a great impact on AR and are bound to create new opportunities for optimizing the working capital.
What are integrated receivables?
Integrated Receivables is a great solution platform that helps you optimize the accounts receivable operations. The same is done by combining all the receivables and payment modules into a single unit business process.
Integrated Receivables provide some of the best solutions for the credit, cash application, e-billing, payment processing, and collections which basically cover the entire process from credit to cash.
A great IR solution provides the real time execution of every credit or A/R operation from a single platform with the aim of lower DSO and faster dispute resolution. This happens at the same time as improving the efficiency and the accuracy of the cash application, payment processing as well as billing.
The Integrated Receivables offer 4 key modules that could either be used separately or even together as an integrated solution. Every module is a key step in an entire AR process. This includes the steps of invoice distribution to collection and reporting as well. Connect – Stay connected with your customers to view and manage their invoices online. Collect – Collect digital and electronic payments without any restrictions. Reconcile – Link the remittance information to the incoming payments and the open AR. Report – Manage business activities online or through your ERP system.
Integrated Receivables Management
A complete integrated approach to receivables could even help you improve the working capital management for your business.
As far as the reengineering of the AR is concerned, organizations need to consider their very own specific targets to adopt the best practices of being recommended to make their AR transformation as successful as possible.
The use of the latest tools, technology, and other trends could help your business experience growth and proper management with their accounts related activities.
Some of the common benefits of installing a dedicated Integrated Receivable solution is:
- Have the provision of an easy access to the accounts receivable data for the purposes of predicting and improving the overall audit controls.
- IR solutions even allow you to manage the exceptions online with flexible workflow tools for streamlining processes.
- These solutions even allow you to consolidate the receivable information into your very own ERP with an automated process.