AR Tactics That Are Losing You Money
- Lockbox Fees: Paying the bank to key line item detail on checks and remittances arriving at your bank lockbox.
- Manual Keying: Having your internal staff key data instead of the lockbox.
- Electronic Payments and Decoupled Remittances- Manually applying (keying) ACH/Wire payments with separate remittances arriving by email, PDF, EDI, or web portal.
- Deductions: Manually applying deduction codes relative to your industry.
- Archival/Storage: Ineffectively storing and retrieving checks and remit images when needed for audit or internal use.
- Remote Deposit: Having remote locations receive payments, which are then either mailed or driven to the bank for deposit, creating days of mail float delay.
- Decentralized Locations: Having multiple (sometimes hundreds) company locations/divisions and accepting payments across the country/world, which often requires FTEs at each location.
- Cost of ERP Upgrades/Customizations: Paying for upgrades or customization of current ERP auto cash modules; proven to be very costly with the required months of IT resources.
- Splitting Payments- Receiving one payment that must be split among multiple ERPs, multiple divisions, and multiple parent-child company relationships, proven to be very manual and time consuming.
- Manual Exception Handling: Manually correcting mistakes that prevent line item information from being automatically applied to the back-end ERP solution (due to imperfect information that must be researched and corrected manually).
If you are employing any of these tactics, I encourage you to explore receivables automation and stop wasting your money. Visit our website to see how AR automation handles these issues.