AR Tactics That Are Losing You Money

Blog | August 27, 2013

Reading time: 2 min

  1. Lockbox Fees: Paying the bank to key line item detail on checks and remittances arriving at your bank lockbox.
  2. Manual Keying: Having your internal staff key data instead of the lockbox.
  3. Electronic Payments and Decoupled Remittances- Manually applying (keying) ACH/Wire payments with separate remittances arriving by email, PDF, EDI, or web portal.
  4. Deductions: Manually applying deduction codes relative to your industry.
  5. Archival/Storage: Ineffectively storing and retrieving checks and remit images when needed for audit or internal use.
  6. 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.
  7. Decentralized Locations: Having multiple (sometimes hundreds) company locations/divisions and accepting payments across the country/world, which often requires FTEs at each location.
  8. 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.
  9. 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.
  10. 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.