The value-adding potential of Credit Managers
Accounts Receivable makes a vital role but often undervalued contribution to a company’s success. The experience and expertise of finance professionals, though, often goes to waste due to the necessity to perform repetitive and time-consuming manual tasks within the AR function. Not only is invoicing time-consuming and urgent: it is also prone to errors when it relies on a complicated arrangement of spreadsheets, software systems and the basic ‘copy and paste’ function.
This breeds further inefficiencies by causing invoice queries and complaints that add to the workload. All this squeezes out time to apply the credit manager’s professional skills to credit risk analysis, trend identification, assessment and intervention.
How to create more time for your professional skills
The automation of routine tasks such as creating and sending invoices has a threefold impact: it increases accuracy, efficiency, and accountability.
ACCURACY: A true eInvoicing platform like Corrivo generates accurate invoices automatically from order data and sends them with all the relevant associated documents such as proof of delivery. This leads to fewer queries and disputes. As the invoices can be self-served in secure portals, it eliminates entirely the need to supply copy invoice requests on-demand to customers claiming their invoice cannot be paid because it is missing.
ACCOUNTABILITY: As stated, with invoices available 24/7, online customers have to be more accountable when they do not pay. Plus, your AR team gets to see exactly when they accessed or downloaded the invoice, so they can no longer hide behind excuses.
The additional data points, such as the date, time and name of the person who viewed, downloaded or paid an invoice, provides a granular breakdown of the individual’s path to payment and is instantly searchable downloadable and available for modelling and analysis. Over time patterns can be detected, and interventions suggested to accelerate the path to payment.
EFFICIENCY: The time saving and data-creating benefits of eInvoicing help your team win back time for important tasks, including customer relations and analysis or identification of root cause issues such as systematic delivery failures for a virtuous circle of improvements that lead to more efficiency. With the barriers to payment removed, cash can flow more quickly, making your invoice to cash processes ascend towards peak efficiency.
Do more of what you love
I am convinced that the reason our clients are so enthusiastic about Corrivo is the way it changes their role, giving them more data and more time to spend doing what they love: analysing data and adjusting policies and tactics to reduce risk, increase cash flow and care for customers.
Advocating for Credit Management Professionals
This year we once again sponsored the Chartered Institute of Credit Management’s awards. We appreciate the immense value credit professionals bring to the businesses they are part of and are proud of our software’s role in helping them give the best of themselves to their jobs by liberating them from inefficiency.
One of our directors puts it this way, how often these days do you handwrite and post a letter when emails the text messages are instant? Getting from invoice to cash without einvoicing automation is like that: it is quaint, but it is not smart.