The adage “cash is king” is truer today than ever before! Collection departments are under increased pressure concerning late or lost payments, dispute management, days sales outstanding (DSO), reconciliation and receipt of cash, as organizations are placing much stronger emphasis on revenue retention. To improve success rates and minimize this pressure, organizations are increasingly looking to technology to gain process efficiencies, enhance customer experience and boost working capital.
Research demonstrates that many North American organizations with $1 billion or more in annual revenue still process their receivables manually, in-house. Still, nearly 60 percent are not fully satisfied. Many of these organizations are searching for a more efficient method of handling this process – and selecting the appropriate platform to handle these functions has proven to be an arduous task.
Your accounts receivable department is spending a considerable amount of time allocating and reconciling cash to your accounting platform. Large volumes of open items and unallocated cash at month-end can impact customer satisfaction, due to the amount of time required to resolve and close financial documents.
The requirement to reduce DSO as well as the overall costs connected with receivables processing is forcing organizations to improve billing and payment processes. Open items as a result of incomplete sales ledger data can negatively impact an organization’s reputation and bottom line.
Automating the manual processes of matching remittance advice information with invoices and reconciling them in the organization’s accounting system can have a notably positive impact on the bottom line. By reducing manual payment allocation, reducing or eliminating bank charges, more quickly allocating cash and improving visibility, In-House AR Assistant™ will allow AR departments to operate more efficiently & cost-effectively – and provide their customers with an improved level of service.
With In-House AR Assistant™, remittance advices are automatically captured upon receipt providing instant online visibility. Payments can be immediately applied to invoices and automatically reconciled to the accounting system reducing month-end volume and DSO.
In-House AR Assistant™ constantly improves its understanding of payment structure and behaviour, eventually becoming intelligent enough to provide a no-touch cash application – allowing for streamlining of resources. This will positively impact the bottom line and overall customer experience. Once you have ACI’s In-House AR Assistant Workflow Automation in place – you will be equipped to implement ACI’s full suite of automation solutions seamlessly (Mailroom, AP & AR).
Some of the ERP’s ACI’s solution has interfaced with include:
ACI’s AR Assistant is a comprehensive workflow solution that automates cash application across all remittance and payment formats – and is designed to replace manual processes increasing organizational efficiency. AR Assistant remittance processing will reduce your Days Sales Outstanding (DSO) by approximately 1 week, and improve your overall cash management.
ACI’s AR Assistant interfaces with any accounting system that has the ability to import and export data files.
AR Assistant handles the entire cash application process – including payment image & data capture, data validation & processing and relieving open invoices. AR Assistant also efficiently handles short payments and deductions.
AR Assistant includes functionality that provides an easy way to apply deductions (short payments, rebates, discounts) and streamlines that data for cash application management. AR Assistant’s reporting modules also provide a complete overview of all deductions in one report – eliminating the need for extensive analysis.
AR is typically the last communication your customers have with your company. When the payment process is fast, simple and stress free, AR staff are actually driving repeat sales and improving your customers’ experience.
Are you ready to cut your AR Remittance Processing Costs and reduce your Days Sales Outstanding? To learn more, reach out to one of our AR specialists today. Click here to contact us.