A recent study on accounts receivable best practices discovered that businesses with automated workflow are much more successful in receiving owed money.
The study was conducted by the Hacket Group and the results were subsequently discussed in a forum on how to increase cash flow through automation and standardization. Online publication Finextra moderated the discussion and shared insights in a recent article.
While the study found that 59 percent of top-performing companies were getting in contact with their customers, it was discovered that much of that success was due to taking proper steps to automate the accounts receivable process. By using various technologies, accounts can be organized and productivity can increase.
"Organizations are able to be more proactive once they standardize their processes and introduce automation workflow into their accounts receivables," wrote the forum moderator. "It frees up the collectors from having to manually prioritize which accounts to contact and focus instead on contacting the customers."
The panelists at the forum all agreed with the moderator's assertion. However, they also agreed that accounts receivable departments must take certain steps to ensure the optimization of the automation process.
For example, employees should determine the management strategy of their accounts. How often will they be contacted? What means of communication will be used? Some accounts may need to be categorized as well, sorting accounts in various groups such as outstanding balance amount and duration of an overdue payment.
These are key factors for accounts receivable departments to consider in the B2B sector. Contacting a business for the purpose of collecting owed money may prove challenging due to a number of elements. Oftentimes, it is difficult to get in touch with an intended contact during the workday, but using an automated system that allows for the entry of data into contact fields along with the opportunity to record every attempt can be beneficial.
B2B payment consulting firms can offer solutions to assist in the planning and automation of the accounts receivable process.