AR management or, accounts receivable management, can involve many different things and it’s paramount to the health of any organization to have a plan for Accounts receivable management in place. After all, most companies invest heavily to maintain their machinery and facilities and to keep reward their employees but very few realize the importance of maintaining healthy accounts receivable management.
Effective AR management has major benefits for businesses. For example, even small bsuinesses don’t have dedicated resources to call on past due accounts. These companies offer Net 30 terms on average to customers but it takes customers more than 60 days to pay on receivables.
Implementing accounts receivable policies, systems, and procedures for accounts receivbale management helps businesses reduce days sales outstanding by 10% to 20%. This means that cash is in the bank 6-12 days faster which increases cash flow and reduces bad debt risk considerably.
Companies implementing such systems and policies typically realize a ROI in 2 months by avoiding financing costs and bad debt write-offs.
Anytime Collect AR management software was developed specifically for small, midmarket, and growing enterprise businesses who need a better way AR management system with automated customer communications, best practice templates and workflow, and integrated AR management reporting and business intelligences. Businesses implement Anytime Collect AR management software at a fraction of the cost of high-end systems and with less than one day of effort.
The AR management process includes research, assignment of responsibility, and implementation of a system with documented procedures to support the corporate AR management goals.
Companies interested in AR management should request our free white paper: 6 Steps To Creating A Business Credit Policy & Collections Action Plan.