Be proactive with “big-picture” collections management
✍ Scribed by Sanjay Srivastava
- Publisher
- John Wiley and Sons
- Year
- 2005
- Tongue
- English
- Weight
- 50 KB
- Volume
- 17
- Category
- Article
- ISSN
- 1044-8136
No coin nor oath required. For personal study only.
✦ Synopsis
C
ollections management is in the midst of a sea change. For most companies, too much of their working capital is tied up in accounts receivable (AR), and far too much time and effort is spent trying to collect on delinquent accounts. Driven by business improvement processes such as Six Sigma, fewer and fewer enterprises are accepting the status quo of chronically past-due invoices and lengthy Days Sales Outstanding (DSO). It is broadly accepted that automation is the key-and indeed it is, though results depend on how it's implemented.
Often times, collecting on accounts receivables can be a very manual, repetitive, and work-intensive process. Some businesses have automated pieces of the collections process, bringing together parts of functionality from various systems. But a growing number are going further and are implementing holistic collections solutions across their entire quote-to-cash process. The benefits of this last approach are so compelling that it is estimated that, by 2006, 60 percent of leading companies will employ a holistic collections management solution.