AR automation is not a one-size fits all solution. Automation works best when it is customized to fit your business model, marketplace and procedures. It is important to customize the rules engine used in AR automation to fit your business requirements. Customized rules will help you maximize the benefits of AR automation. Here are some examples of how rules engines can be customized.
Regulations and Legal Requirements
Some industries are regulated or subject to specific legal requirements. These industries have processes that are document and date driven. In these situations, rules engines need to include reminders based on key dates that documents or actions are due. Some examples include:
- Fruit and vegetable distribution – The Perishable Agricultural Commodities Act (PACA) regulates the buying and selling of fresh and frozen fruits and vegetables to prevent unfair trade practices and assure that sellers will be paid promptly. PACA has date and documentation requirements which can be customized in a rules engine.
- Construction – The construction industry relies on liens to protect builders if they are not paid. Liens are document and date driven. These requirements can be customized in the settings of a rules engine.
If you sell software applications and services, the settings in your rules engine would be different if you invoice by subscription, than if you invoice when the software is installed or service is provided.
Sales of a consumer product either direct to retail, through distribution, or all these channels, would require different rules for each channel. The rules you need can be customized to fit your business model, customers and channels of distribution.
Companies that have more stringent collection policies need different rules than companies with less demanding requirements. Stringent collection policies may require more automated emails and tighter timing before personal contact is required.
Size of AR Team
If the size of your AR team is small compared to your needs, then you would probably want to maximize the use of automated communication, a self-service customer portal, and activities management so your team has as much time as possible for customer contact. Your rules engine can be set to eliminate manual activities, to free up your team for higher priority collection activities.
Customizing your rules engine will maximize the benefits of AR automation, and result in increased cash flow, working capital, net income and shareholder value. Automating credit and collections activities can save time so your team can reach out to customers when needed to collect accounts and build customer relationships.
Lockstep Collect, a leader in cloud-based credit and collection platforms, can help you collect cash in 4 ways:
- Cloud-based solutions
- Automated customer communications
- Customer self-service
- Collections Activity Management
Lockstep Collect is an experienced software partner that can help you maximize your collections and cash flow in the new normal.
If you would like to learn more about how you can benefit from automated credit and collection solutions, please contact Lockstep Collect at www.lockstep.io.