Gain Business Insights from AR Data

For far too long, accounts receivable has been seen as nothing more than a back-office function. Or worse, it’s the business unit that slows sales opportunities.

The reality is that AR can and should be a source of strategic insights for the organization. AR data can improve cash flow, reduce risk, and enhance decision-making.

Here are several ways to leverage AR data effectively to drive value for your business:

Utilize Aging Payment Data to Support Cash Flow Forecasting

Some customer will always pay late. The more you’re able to predict who those clients are, the better you’ll be able to predict future cash flow shortages and thereby optimize working capital. Identifying slow-paying customers can also lead you to adjust credit terms or offer incentives for early payments.

Reduce Losses by Analyzing Bad Debt, Write-Offs and Disputes

Identify patterns in uncollectible accounts to refine credit approval processes. You should also track common reasons for disputes to resolve them proactively and improve customer relationships. 

Identify Best Credit & Collections Practices

Compare collector performance and the effectiveness of their collection strategies to identify improvements for the rest of the team. Learn from trend analysis to anticipate late payments (by customer, industry, etc.) to take preemptive action. In addition, use AR data to rate customers based on payment history to adjust credit limits. Using AR data to score customers based on payment history enables you to adjust credit limits, up or down.

Build a Stronger Sales Process

Compare sales trends with AR payments to assess whether revenue growth is sustainable or if it’s tied to increasing receivables risk.

Every dollar of revenue flows through AR. Turn that data into strategic insights, enabling your organization to grow.