If you have a large business or corporation, there is a good chance that you rely on accounts receivable automation as your answer to the collection challenges that you face daily. What you have probably noticed at this point is that with more and more deductions showing up on your receivables, your team faces a great deal of extra work. The answer to revolutionizing your deduction management process lies, yet again, in automation. We are going to explore the ins and outs of automated deductions management and how it can help your organization to manage deductions as quickly and efficiently as possible.
Begin with AR
You likely already know about accounts receivable, but if you are new to the game we shall lay it out for you. Accounts receivable are sales for which payments have yet to be made. Many businesses provide with customers goods and services prior to any form of payment, an enticing and necessary business model. Not only that, the practice is far more common than you might suspect. You receive a month’s worth of cable television before the bill arrives. This essentially amounts to selling on credit and can prove a gamble for businesses. Accounts receivable automation greatly facilitates this process and paves the way for the future of accounting efficiency and automated deductions management.
AR Automation and the deductions management process
Everyone is automating business processes because in an effort to shift the burden of labour-intensive administrative work onto the shoulders of technology. Deductions management in accounts receivable can be mind-numbing for most, but technology is revolutionizing the time and energy companies need to devote to it. Invoicing is transferred to a digital platform where invoices are created based on company data. Invoices and reminders are forwarded electronically, with the platform allowing for numerous payment options, including credit cards, PayPal and automated clearing house (ACH). Through deductions management automation, you are able to review, accept and challenge deductions quickly and efficiently, while providing control over standard contract terms and conditions, as well as temporary discounts and performance.
The end of paper
Do you want to know where the death of good deduction management lies? In paper. When you do not have access to AR back-up documentation, you are digging your organization an early grave. When you need to research and document a deduction issue quickly, you are going to find it nearly impossible to do if all related information is still on paper. Herein lies the automated solution to your problem. If you are bleeding money because your system is not yet automated, it is time to embrace a holistic solution that combines electronic cash protocols with deductions management. A well automated system will also include trade promotions management (TPM) and proof of delivery (POD) analysis. Just imagine being able to use this automated solution to quickly find deductions according to type, and then routing them to the appropriate avenue for correction.
Technology on the rise
AR management is easier and more efficient than it has been before, and now deductions management no longer requires a team of people working countless hours. Web aggregation technology can automatically perform several functions that help manage your business and spur growth. For instance, WAT can effortlessly troll customer portals and websites, capturing PODs, claims and everything else required for deductions management. Not only does the technology gather this vital information, it also organizes and attaches it to the proper deductions case. It is easier than ever before to reclassify GLs once accepted and approved, handle rejected claims and follow up on challenges. The approvals process will proceed smoothly based on deduction types and amounts.
How much will your business benefit?
In all honesty, it is going to vary. The bottom line is that automated deductions management will improve the overall quality and efficiency of the dispute reconciliation process. This will save you time and money, while eliminating messy interactions with suppliers and customers. This creates rapport over time and leads to increased business. Bear in mind, however, that the benefits you reap will depend on the nature of business being conducted. If you seek merely to ease the friction associated with challenging interactions, you will achieve just that. But if your goal is to digitize the entire AR and deductions management system to take your business to the next level, you will no doubt achieve that goal as well. Accuracy, speed and precision are part and parcel of what automation has in store for you.
Bringing it all together with deductions management tools
The main goal of deductions management automation is to bring everything together neatly and cleanly. This type of automation sees and shares patterns that you would never be able to track on paper. Repeat problems are identified and standard issues flagged effortlessly. When your business can readily spot these commonalities, it is able to bring retailers and suppliers to the table to discuss future practices to help eliminate the issues at hand. If deductions management automation had not revealed these issues, the problems would persist right under your nose.
What are the benefits of being able to consistently evaluate and manage a working relationship with each party? For one thing, when a supplier is working with retailers that use deductions management software, they feel as though they are being heard. This strengthens the relationship between supplier and retailer, and leads to both increased business and better cash flow. Confidence is key to all manner of business between any two parties, and deductions management software can help harness it. If you have been using manual processes for some time now, deductions management software will allow you to regain control over your resources and increase overall productivity.
How we can help
Our solution can provide a high level of straight-through transactional processes for your receivables. How do we do this? We use RPA to gather remittance information, advanced digital transformation (ADT), and artificial intelligence (AI), thus converting structured transactions and relying on a business process workflow to manage and control exceptions. Sound like a mouthful? Contact us today. We shall be happy to walk you through the process.