Learn how you can Increase cash flow, improve worklist prioritization and reduce DSO through AI Powered Collections Management Solution
The primary goal for the credit and collections department is to turn open invoices into cash, therefore increasing the cash flow while mitigating credit risk. Within onboarding a customer and collecting past-dues from them, credit and collections professionals go through the havoc of dealing with an exhaustive task list.
Reducing DSO and mitigating credit risk are long-term goals. Credit and collection teams should break their long-term goals into multiple short-term goals, these short-term goals could be tracked easily and would help them to see the bigger picture.
Here’s a list of 23 such objectives and smart goals for credit and collections, each one being the compartmental building block of the whole process:
Understand the sales initiatives by channel, product line and region and ensure that credit lines are available to meet revenue goals.
Review and adjust the current credit policy to include:
Review and adjust the current credit policy to include:
The S.M.A.R.T method is an excellent approach to setting achievable accounts receivable goals and objectives because it covers all bases and leaves no room for errors.
Let’s dive deeper to understand what every parameter in smart goals for accounts receivable stands for and how exactly they would help to attain your credit and collections goals:
MAKE THE GOAL QUANTIFIABLE
First thing is to specify the goal by making it tangible. Without specificity, the goal is a lot more like a dream than an actual goal. In addition to making it quantifiable, you want to answer the following questions:
DETERMINE METRIC[S] TO TRACK PROGRESS
Your goal must be measurable so you can track progress, stay motivated, and recognize when you have achieved it. A measurable goal should address questions such as:
ENSURE IT IS WITHIN THE REALM OF POSSIBILITY
Setting a specific and measurable goal is all well and good, but if it’s not realistic then its a waste of time, and will only lead to Disappointment.
Therefore, you must make sure that the goal is actually attainable given your unique circumstances.
An achievable goal will usually answer questions such as:
DETERMINE HOW THE GOAL IS CONNECTED TO SOMETHING BIGGER
This step is about ensuring that your goal really matters to you, and that it aligns with other relevant goals.
You should answer the following questions to ensure your goal is relevant:
SET A DEADLINE
The final piece of the S.M.A.R.T jigsaw – making the goal time-bound.
The reason why your goal should be time-bound is relatively self explanatory, because every goal needs a target date; a deadline to work towards.
In order to make your goal time-bound you should answer the following questions:
Yes! Those are the list of things on the horizon that are going to completely change the outlook of performance goals for accounts receivable departments in the coming years.
Here is a quick overview on what you need to beat the odds, accelerate your growth, and drive your A/R to monumental success:
1. Minimize credit risk with a step-by-step approach to creating a credit policy framework that aligns with business growth objectives.
2. Drive compliance for everyday tactical work by understanding critical trade credit and collections laws.
3. Build process improvement recommendations by leveraging reporting and analytics for immediate course-correction and strategic insight.
4. Transform credit and collections processes by leveraging cutting-edge technologies and process automation.
Acquiring these skills and objectives can help leaders and professionals across the credit and A/R space achieve monumental success while delivering top of the class results.
Read the section below.
HighRadius is a Fintech enterprise Software-as-a-Service (SaaS company that leverages Artificial Intelligence-based Autonomous Systems to help 600+ industry-leading companies automate their Accounts Receivable and Treasury processes.
The HighRadius® Integrated Receivables platform reduces cycle times in your order-to-cash process through automation of receivables and payments processes across credit, electronic billing and payment processing, cash application, deductions, and collections. The HighRadius® RadiusOne A/R Suite offers a pocket-friendly platform for hundreds of mid-sized businesses to enable faster A/R processing and enhance their working capital. HighRadius® Treasury Management Applications help teams achieve
touchless cash management and accurate cash forecasting.
Powered by the RivanaTM Artificial Intelligence Engine and FreedaTM Digital Assistant for order-to-cash teams, HighRadius enables teams to leverage machine learning to predict future outcomes and automate routine labor-intensive tasks.
Processing over $2.3 Trillion in receivables transactions annually, HighRadius solutions have a proven track record of optimizing cash flow, reducing days sales outstanding (DSO) and bad debt, and increasing operational efficiency so that companies may achieve strong ROI in just a few months. HighRadius is the industry’s most preferred solution for Accounts Receivable & Treasury and has been named a Leader by IDC MarketScape twice in a row.
To learn more, please visit www.highradius.com
HighRadius Collections Software automates and optimizes the credit & collections management process to improve collector efficiency, minimize bad debt write-offs, improve customer relationships, and reduce DSO. It provides a complete set of tools to optimize and automate the credit collections management process and enable the better prioritization of credit collections activities All the information you need (invoices, dispute information, POD, claims, tracking info, etc.) on each case is automatically presented in a collections work-space and is ready for use. Apart from the wide variety of benefits that it has, it also comes with some amazing features like CADE (Collection Agency Data Exchange), collector’s dashboard which has prioritized collections worklist, automated dunning & correspondence, dispute management, centralized tracking of notes, call logs & payment commitments along with cash forecasting functionalities. The result is a more efficient collections team that contributes to enhanced cash flow and reduced DSO.