Account receivables management at companies across a broad range of industries suffers from severe limitations that are leading to avoidable trapping of significant value. Disparate and non-intelligent IT systems, duplication, inaccuracies, inconsistencies in data and information across collections, finance, treasury, operations and customer departments are severely affecting the efficiency.
Intuition-based approaches and loosely defined key performance indicators (KPIs), and use of one-size-fits-all strategies are factors leading to entrapment of value that would otherwise be available for business growth. Reactive processes are inadvertently guiding teams to focus on accounts with poor conversion ratios, and escalations that surface almost around the time that risk events occur, preventing effective management by exception. Limited staffing is another constraint that hurts the efficacy of account receivables functions.