Data-Driven Credit Management – A Guest blog by Data Interconnect
Data-Driven Decision Making
Many businesses still struggle to assemble data from various spreadsheets and systems to create the reports their Accounts Receivable or Credit Management team needs. This leaves credit controllers in the dark or forces the team to lose several working days a month assembling the data before even analysing and acting on their findings, which will now be instantly out of date. The root cause of this data blindness is a diverse mixture of legacy systems and outdated, often paper and PDF-based invoice-to-cash processes.
The solution is simple and has the benefit of giving AR managers the data and the time to analyse, model and report on it along with removing much of the repetitive, manual work that consumes their time.
The data, not connected
It is realistic to assume that if a business is not using a fully integrated eInvoicing platform, it will have higher operating costs than its more digitally savvy peers. They have probably fallen victim to the continuing issue of finance being the last in line for digital transformation.
Accounts Receivable teams are good at working tirelessly to make deadlines and keep up the appearance of being able to cope with a high workload, the frustrations of disparate systems and a lack of connection and integration between them such that simple, routine and essential processes, like cash flow forecasting, become an enormous effort.
Some companies believe they are using electronic invoicing. A handful of customers take invoices via an EDI connection in a structured format such as EDIFACT, while the remainder receives PDFs by email. The data available for analysis of such cases is disconnected and incomplete.
More time for data-driven decision making
Automation improves invoice accuracy, leading to a net reduction in query and dispute volumes and a typical 40-85% higher productivity for AR managers. Corrivo not only provides the data but gives AR teams back the time to drill down carefully, with the certainty that the data is accurate, complete and from one source, not copied and pasted and assembled from an array of sources.
More data, interconnected
The Corrivo SaaS platform automates key processes and provides additional data to AR managers that enable a highly refined analysis of customer behaviour and a plethora of data that can easily be searched, compiled, downloaded, and modelled. Regular reports can be designed and created. Ad hoc reports or searches can be easily affected. All the data for every single invoice, current and historical, is stored on one secure platform in a searchable format. This means there is more data, and that the data is easier to access and analyse.
Author: Jim Adams, Business Development Director at Data Interconnect