Although considered equivalent to cash, account receivables is cash that is locked by a counterparty. This inflates operational expenses and represents trapped value.
Many companies have established invoice processing teams whose primary role is to ensure collection of receivables with minimum losses. But these are manually driven tasks that involve establishing credit policies and collection strategies, crunching data from different enterprise resource planning (ERP) systems and drawing insights, as well as communicating with customers. Moreover, many of the resulting decisions and actions are then made based on judgment using inefficient and outdated techniques such as aging reports.