Accounts receivable reporting tools can impact how successful an accounts receivable department is at their collections process. Using AR reports can give insight into where you are now and how you can change the process to do even better in the future. Without them, an accounts receivable department is likely to continue making the same mistakes and jeopardize the cash flow of the business.
Here are just three examples of how, with the insights gained from AR reporting tools, credit managers and finance executives alike can make fast and informed decisions to support corporate growth initiatives.
1. By gaining easy access and greater visibility into receivables, you can track AR management metrics on day-to-day, month-to-month, and annual basis. A wide range of reports that come with AR reporting tools, management reports, user reports, email alerts, and views are available to analyze financials, activities, accounts, disputes, expected payments, and all aspects of your accounts receivable, credit, and collections process.
Further, with AR management reporting tools found in a system like Lockstep Collect, alerts can be created in the software to deliver information to a credit or inquiry user on a scheduled basis, an excellent way for executives and managers to receive consistent updates and reports and keep sales reps up to speed on any of their accounts currently in dispute, on credit hold, or other factors that may require their attention.
2. AR management reporting tools can help you develop more accurate cash flow forecasts to ensure healthy levels throughout the year. With Lockstep Collect users can project cash flow based on customer’s payment history and provides a statistical cash forecast from the next 7 days out to 35 days. When collectors are on the phone with customers and they are told a payment will be made for a specific amount by a specific day, the collector can define that within the software to alter the forecast for increased accuracy. If expected payments are not made and promises are broken, the system will kick out an automated alert for a collector to follow up on the broken promise.
3. With the right system you’ll see fewer late payments and disputes as the AR management tools will help you ensure invoice accuracy and make improvements for the future. For example, many disputes or delayed payments are caused by missing or incorrect PO information, Lockstep Collect will alert credit reps when the invoice appears to be missing critical information so it can be corrected immediately.
The AR management and reporting tools can also be set up to product a report which analyzes invoice disputes by reason code to help you identify internal or external issues so measure can be taken to prevent them in the future. Users can even set up automated procedures for specific types of disputes; for example, if the system registers a shipping dispute reason code, not only will collectors be notified, but you can set the system up to send an alert to the warehouse manager too for a joint effort to quickly solve the problem and collect the money owed.
As you can see, AR reporting tools provide credit department and company leaders with the strong analytical skills and information they need to influence the business financials, increase working capital, and ultimately improve profitability to drive future innovation and growth. Learn more about the features and functions of AR management reporting tools and the real-life results recognized by businesses here.