Strategic AR Management is a shift of focus from transaction processing to:
Driving Revenue & Margin Growth
Providing an Exceptional Customer Experience
Achieving Ultra-Efficiency
The Collection Timeline specifies which actions are taken at each point in the age of customer delinquency.
This varies with each company.
It needs to consider and blend a number of factors:
The Corporate Accounts Receivable Strategy
The Market Position
The Nature of the product/service
The Customer base
In some ways, a Collector's objectives are direct opposites to the AP Department's objectives.
Collector: Every penny of every invoice paid on time
AP: Maximization of Days Payment Outstanding (DPO)
Commonalities include:
Professional decorum and respect
Providing complete, timely & accurate information to promote efficiency for both parties
What are these efficiency drivers?
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