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How to Improve Accounts Receivable Management with A2A Automation

Transcard
February 26, 2021

Businesses need ways to improve accounts receivable in times like these.

For most businesses, AR Management can be:

  • Costly
  • Overly Time Consuming
  • Error Prone
  • Lacking of Adequate Visibility
  • Frustrating for Customers & Internal Stakeholders

Better AR Management Helps Counter the Effects of Declining Customer Demand

Including an Account-to-Account (A2A) Automation solution into AR management is a crucial step for improving the management of cash and receivables.

A2A solutions digitize and simplify the exchange of payments-related data between the world’s buyers and suppliers, cutting costs and complexity.

The technology behind A2A Automation connects buyers and suppliers through a seamless integration with their enterprise resource planning (ERP) application and the banks that make and receive payments on their behalf.

A2A Automation is becoming a linchpin of more and more

accounts receivable strategies.

Here's How it Delivers Benefits Across the Accounts Receivable Cycle

AR Payments:

Best-in-class A2A solutions include a centralized business directory that makes it easy for new customers to find and pay a supplier without logging into a portal.

A2A solutions support all AR payment types, including cards, Automated Clearing House (ACH), Real-Time Payments (RTP), cross-border payments, and blockchains.

Average Collection Days:

The centralized business directory built into some A2A solutions enables suppliers to systematically define and enforce payment preferences and terms.

DSO Improvement:

With an A2A solution for AR management, suppliers can improve their average Day’s Sales Outstanding (DSO) by promoting discounts for early payments.

Accounts Receivable Invoice Matching:

Because suppliers receive rich remittance data with each payment made through an A2A solution, there is no need for staff to waste an abundance of time matching remittances with payments or applying payments to open invoices in an ERP.

Accounts Receivable Reconciliation:

By including rich remittance data with payments, A2A solutions provide suppliers with better AR reconciliation data in a standardized format.

Improving daily cash reconciliation processes allows AR staff to focus on higher-value activities.

Cost of Maintaining Receivables:

The rich remittance data provided by an A2A solution means suppliers will spend less time logging into buyer portals and managing exceptions.

A seamless integration with an ERP means AR payment remittance data can be uploaded electronically and payments can be applied instantly, without the need for manual data entry.

Internal Control for Accounts Receivable:

When suppliers are paid via a secure, PCI-compliant A2A solution, there is no need to share card details or other sensitive data with customers.

AR Analytics:

Digitizing AR management on a single platform puts smart cash and receivables insights at the fingertips of decision-makers.

Accounts receivable departments have real-time visibility into the accounts receivable end to end process, so they can take proactive action to resolve any operational issues.

Finance leaders can also instantly access metrics such as days to collect accounts receivable and daily sales outstanding.

 

A2A Automation is a crucial step for better AR Management

Is your business evaluating accounts receivable solutions?

If so, let’s chat!

 

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