AR automation needs to be customized. It’s not a one-size fits all solution. Automation works best when it is tailored to fit your business model. The rules engine used in AR automation can be customized 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 custom tailored.
Laws and Regulations
Some industries are regulated or subject to 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:
- 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.
- The construction industry relies on liens to protect builders against non-payment. Liens are document and date driven. These requirements can be custom tailored in a rules engine.
Customers and Channels of Distribution
Software applications and services sold by subscription need different collection rules, than if you invoice when the software is installed or service is provided.
Sales of a product either direct, to retail or through distribution, would need different rules for each channel. Rules can be tailored to fit your business model, customers and channels of distribution.
Companies that have more stringent collection policies need different rules compared to companies with less rigorous requirements. More demanding collection policies may require additional automated emails and personal contact sooner.
If your AR team is small, you would probably want to use automated communication, a self-service portal, and activities management so your team has as much time as possible for customer contact. Rules engines can be set to eliminate manual activities, which will free up your team for higher priority activities.
Custom tailoring rules engines will maximize the benefits of AR automation, and result in increased cash flow and working capital. Automating credit and collections activities can save time so your team can contact customers when needed.
With a connected accounting solution for your AR and AP teams to coordinate work with customers and vendors, you can go digital and enjoy the benefits of office automation.
Lockstep, a leader in cloud-based connected accounting solutions, can help you boost productivity and optimize cash flow with:
- Digital Onboarding – Collect master data directly from your customers and vendors
- Accounting Inbox – Make it easy to divvy up work and track progress
- Smart Automation – Automate menial task with accounting integration
- Online Accounts – Give customers and vendors online access to their accounts
Lockstep is an experienced software partner that can help you increase efficiency and accelerate cash flow.
If you would like to learn more about how you can benefit from connected accounting solutions, please contact Lockstep at www.lockstephq.com.