This e-book, with research on more than 500 receivables projects, concludes that credit and A/R leaders are more likely to positively impact A/R KPIs if they start with an assessment of their collections operation maturity on 5 key parameters -people, processes, data, collaboration, and technology. The Collections Operations Maturity Model has been devised to help finance decision-makers perform an in-depth evaluation of their current operations and identify clear next steps to advance up the maturity pyramid.
There are 5 important components of the collections process which play a critical role in making the process faster and more efficient and contribute significantly towards reducing the DSO. Improving the strength of these pillars can go a long way in upgrading collections into a faster and more efficient process, and reducing the DSO. The following discusses how these are the key success factors in reducing DSO.
The maturity of collections process corresponds to the effectiveness of the process with respect to these five components. The next chapter explores how collections process has evolved and matured over the decades on the five high impact pillars.
HighRadius Integrated Receivables Software Platform is the world's only end-to-end accounts receivable software platform to lower DSO and bad-debt, automate cash posting, speed-up collections, and dispute resolution, and improve team productivity. It leverages RivanaTM Artificial Intelligence for Accounts Receivable to convert receivables faster and more effectively by using machine learning for accurate decision making across both credit and receivable processes and also enables suppliers to digitally connect with buyers via the radiusOneTM network, closing the loop from the supplier accounts receivable process to the buyer accounts payable process. Integrated Receivables have been divided into 6 distinct applications: Credit Software, EIPP Software, Cash Application Software, Deductions Software, Collections Software, and ERP Payment Gateway - covering the entire gamut of credit-to-cash.