Manual handling can make the accounts receivable dispute resolution process more gruesome and time-consuming. This tedious process can take a huge toll on your outstanding receivables. The downstream impact of inefficient deductions handling can lead to-
1. Working Capital Stuck in Disputes- When a lot of potential working capital is trapped in disputes, your company will be at risk of a decreasing bottom line.
2. High Operational Expenditure- AR teams spend a lot of time on low-value tasks of manually gathering documents. Teams across departments have to work together to verify and validate details. This is a manual and time-consuming process that affects resource utilization and reduces productivity.
3. Increased Rate of Invalid Write-offs- Invalid write-offs can gravely affect your company’s financial performance.
4. Poor Customer Experience- Most AR teams in mid-sized businesses work under an ad-hoc model with lots of to and fro communication with customers. This results in a slow deductions process while affecting the customer experience.
With a proactive approach to handle AR dispute management, your organization can reduce the cost burden of deduction. Let’s see what are some best practices that you can take up to improve deductions handling.
Innovative AR automation solutions have helped finance teams achieve greater efficiencies in order-to-cash processes. Read along to find out how AR automation can help to fast-track the resolution process and reduce the amount of manual intervention required.
When left unchecked, inefficient deductions management can take a heavy toll on your company’s bottom line. But proactive dispute resolution can be a step in the right direction to maintain a positive customer experience with reduced risk and improved revenue. Do you want to assess how efficient your AR processing is? Take a few minutes to help us understand the problems you face with AR-
Check out this blog on optimizing your AR with proactive collections management and learn how scalable automation solutions can minimize friction caused by manual AR.
HighRadius RadiusOne AR Suite provides the complete eInvoicing solution designed to automate your invoice delivery and empower customers with a self-service portal to manage, track and pay invoices. It is quick to deploy and ready to integrate with ERPs like Oracle NetSuite, Sage Intacct, Quickbooks, and scales to meet the needs of your order-to-cash process.
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