#ar collection

[kapittx]

How Can Gen AI Revolutionize Your Accounts Receivable Process?

The advent of Generative AI (Gen AI) heralds a paradigm shift in the landscape of Finance and Accounting (F&A). Much like the introduction of spreadsheets as a product innovation decades ago, finance professionals were quick to embrace and derive immense benefits from the use of spreadsheets. 

Gen AI in Finance and Accounting emerges as a potential game-changer, poised to revolutionize traditional practices within the realm of F&A and invoice payments. However, for this potential to be realized, CFOs must demonstrate openness to experimentation, allowing themselves to explore the tangible impact of Gen AI in Finance and Accounting functions.

Embarking on this journey necessitates a focused exploration of Gen AI’s applicability, particularly within accounts receivable management and invoice payments. By delving into this domain, CFOs can gain firsthand insight into the transformative power of Gen AI in Accounts Receivable. As with any strategic business investment, it is prudent to assess the anticipated returns and the timeframe within which these benefits can be realized.

In essence, embracing Gen AI in accounts receivable and invoice payments represents not only a technological advancement but also a strategic imperative for forward-thinking finance leaders. By embracing innovation and fostering a culture of experimentation, organizations can unlock unprecedented efficiency, agility, and competitive advantage in the ever-evolving landscape of finance and accounting.

How Can Gen AI Revolutionize Your Accounts Receivable Process?

Irrespective of the organization, to ensure optimal efficiency within the accounts receivable function and to explore the potential of integrating Gen AI powered Accounts receivable, it is essential to adopt a strategic approach centered around four key building blocks. These pillars serve as the foundation for effective management and innovation in accounts receivable:

Receivable Antecedents : 

This encompasses the meticulous orchestration of all preliminary tasks necessary to establish a receivable. From the initial engagement with clients to the negotiation of terms, to the careful documentation of agreements, each step in this process demands precision and foresight. Building strong receivables antecedents lays the foundation for smooth transactions, timely invoice payments and ensures a robust financial framework

They include:

Customer Onboarding: Accurate customer data collection, credit checks, and setting credit limits.

Sales Order Processing: Efficiently converting orders into invoices.

Contractual Agreements: Clear terms and conditions regarding payment terms, discounts, and penalties.

Order Fulfillment: Ensuring timely delivery of goods or services.

Timely Invoicing: Generate invoices promptly after goods/services are delivered.

Clear and Accurate Invoices: Ensure clarity, itemization, and correct pricing.

Invoice Presentment and Reminders: 

In the dynamic landscape of revenue management, the presentation of invoices holds paramount importance. It transcends beyond mere documentation; it embodies the essence of your transactions, encapsulating the value exchanged with your clients. Your approach to invoice presentment and invoice payments is characterized by clarity, accuracy, and timeliness. Moreover, one need to recognize the strategic significance of reminders in facilitating prompt invoice payments. Through proactive communication and gentle nudges, you endeavor to uphold transparency, nurture client relationships, and optimize cash flow dynamics.

This step involves creating and delivering invoices to customers:

Multiple Channels: Offer electronic and paper-based invoice delivery to facilitate invoice payments.

Standard Payment Reminder Schedule:

o Set a consistent schedule for sending payment reminders. This helps maintain clarity and predictability for both you and your clients. o Send reminders before the due date to gently prompt clients to pay on time. o Issue reminders close to the actual due date to emphasize the urgency.

• Personalized Reminders:

      o Customize your reminders to suit each client. Address them by name and include relevant details.       o Personalization shows that you value the relationship and encourages prompt payment.

• Politeness and Professionalism:

o Maintain a polite and professional tone in your reminders. o Avoid threatening language or negativity that could harm the client relationship. o Clearly state the purpose of the reminder and the essential details, such as the invoice number, amount due, and due date.

Collaboration :

Collaboration lies at the heart of your approach, both externally with your valued customers and internally among your team members and departments. Externally, effective collaboration involves understanding your clients’ needs, communicating transparently, and working together to resolve any issues or discrepancies promptly. Internally, collaboration ensures alignment across functions, streamlines processes, and maximizes efficiency, ultimately leading to superior customer service and satisfaction.

Effective communication is crucial:

Customer Communication: Regular follow-ups, addressing queries, and resolving disputes.

Internal Coordination: Collaboration between sales, finance, and customer service teams.

Dispute Resolution: Swiftly address any discrepancies.

Payments and receipt management :

Efficient management of invoice payments and receipts is essential for maintaining cash flow and optimizing financial performance. This includes implementing secure and convenient payment channels, diligently tracking incoming payments, and promptly reconciling accounts. By prioritizing invoice payments and receipt management, you can minimize delays, mitigate risks, and ensure the stability and resilience of our financial ecosystem.

Efficient handling of incoming invoice payments:

Payment Channels: Accept various methods (credit cards, bank transfers, etc.).

Reconciliation: Match payments with outstanding invoices.

Cash Application: Apply payments accurately to the correct accounts.

What are the building blocks of Gen AI in Accounts Receivable?

Overall, Gen AI in accounts receivable encompasses a wide range of capabilities making it a versatile tool for various applications across different domains. A few of the core building blocks are –

Data Generation: Gen AI In accounts receivable, can generate synthetic data to augment existing datasets used for training predictive models. For example, it can create simulated customer invoice payments histories, including variations in payment amounts, frequencies, and timing. This synthetic data allows organizations to train their models more comprehensively, improving the accuracy of predictions regarding future payment behavior.

Data Conversion: Gen AI in accounts receivable can facilitate the conversion of data between different formats in the accounts receivable process. For instance, it can automatically convert paper-based invoices into digital formats by extracting relevant information such as invoice numbers, amounts, and due dates using optical character recognition (OCR) technology. This conversion streamlines the invoicing process, reducing manual effort and minimizing errors.

Data Categorization: Gen AI in accounts receivable, can categorize transactions based on various criteria such as invoice payment methods, customer segments, or invoice statuses. For example, it can automatically classify incoming invoice payments as cash, checks, or electronic transfers, allowing finance teams to track payment trends and reconcile accounts more efficiently. By categorizing transactions accurately, Gen AI powered accounts receivable enhances data organization and facilitates deeper insights into receivables management.

Advisor Functionality: Gen AI in accounts receivable serves as an intelligent advisor by providing actionable insights and recommendations based on analyzed data. For example, it can identify patterns of late invoice payments or discrepancies in invoicing that may indicate potential issues with specific customers or billing processes. By alerting finance teams to these anomalies, Gen AI powered accounts receivable enables proactive intervention to mitigate risks and optimize cash flow management.

Overall, Generative AI enhances the efficiency and effectiveness of accounts receivable operations by generating data, facilitating data conversion, categorizing transactions, and providing intelligent advisory support. By leveraging Gen AI capabilities, organizations can streamline receivables management processes, improve decision-making, and ultimately enhance financial performance.

[linipik]

FAVORED AND ENVIED.

Cousin run (Feat. Grandma Demeter)

[braxiatel]

Thinking about Grian from a shippy point of view, I think it’s really easy to misunderstand his character.

The thing is that when Grian likes someone he Likes them. Capital L.

Mumbo, Scar, BigB, etc. When he falls he falls hard and he becomes obsessed with the objects of his affection.

And here is where a lot of people get him wrong (and to be clear I’m thinking about this because I am trying to improve my characterisation of him and can see places where I’ve made this exact mistake in the past). The thing is, Grian is self aware and he is trying sooooooooooo so hard to appear Normal about the object(s) of his affection. At all times he is - if not physically then mentally - doodling his name next to his crush’s name surrounded by hearts, but he can’t have them knowing that. He would walk into hell for them but he Will complain about it the whole way. He will wither away without their attention, but will go no further than to coincidentally happen to do so in the place they are most likely to find him.

And that, I believe, is the crux of why getting his character right is difficult. He cares so deeply, leading some people to think that he is all lovey-dovey and not at all guarded with his emotions, but at the same time he is trying (albeit badly at times) to hide his affection, leading another camp of people to take him at face value and think he doesn’t care.

I don’t have much of a point other than how interesting it is, and perhaps a hope of seeing it featured more in fanon

[stick-by-me]

Ice cr4m

[ghost-bxrd]

Prompt:

Demigods edition!

Dick — son of Zeus or Aphrodite

Jason — son of Hades or Thanatos

Tim —son of Athena

Steph — daughter of Hermes

Duke — son of Apollo

And Bruce is a god who pretends to be human and accidentally keeps adopting demigod children, regardless of which deity he’s pissing off by doing so.

[my-pjo-stuff]

Love how Luke's response to Percy asking, “why don’t they mess with you?" being “they know better” implies that Clarisse (or other Ares kids) infact DID attempt to mess with him at some point. Only for Luke to proceed to whoop their asses so hard they never tried again XD

[jakattax]

Ars Goetia

Translated and edited by Paul Summers Young

Black Letter Press

First Edition of 333 copies

2024

[llovelymoonn]

favourite poems of december

a.r. ammons collected poems: 1951-1971: "dunes"

jennifer robertson shrill shirts will always balloon

n. scott momaday in the presence of the sun: stories and poems, 1961-1991: "the delight song of tsoai-talee"

ted berrigan the collected poems of ted berrigan: "bean spasms"

natalie diaz when my brother was an aztec: "abecedarian requiring further examination of anglikan seraphym subjugation of a wild indian rezervation"

greg miller watch: "river"

joanna klink excerpts from a secret prophecy: "terrebonne bay"

dorothy dudley pine river bay

brenda shaughnessy our andromeda: "our andromeda"

frank lima incidents of travel in poetry: "orfeo"

lehua m. taitano one kind of hunger

no'u revilla kino

linda hogan when the body

paul verlaine one hundred and one poems by paul verlaine: a biligual edition: "moonlight" (tr. norman r. shapiro)

mahmoud darwish the butterfly's burden: "the cypress broke" (tr. fady joudah)

mahmoud darwish the butterfly's burden: "your night is of lilac"

amir rabiyah prayers for my 17th chromosome: "our dangerous sweetness"

sara nicholson the living method: "the end of television"

charles shields proposal for a exhibition

ginger murchison a scrap of linen, a bone: "river"

tsering wangmo dhompa virtual

anne carson the beauty of the husband: "v. here is my propaganda one one one one oneing on your forehead like droplets of luminous sin"

muriel rukeyser the collected poems of muriel rukeyser: "the book of the dead"

anne stevenson stone milk: "the enigma"

david tomas martinez love song

robert fitzgerald charles river nocturne

thomas mcgrath the movie at the end of the world: collected poems: "many in the darkness"

linda rodriguez heart's migration: "the amazon river dolphin"

donald revell the glens of cithaeron

sumita chakraborty dear, beloved

angela jackson and all these roads be luminous: "miz rosa rides the bus"

kofi

[roanofarcc]

ALWAYS A DAUGHTER, NEVER A SON

clarisse la rue || daughter of ares

she could try. clarisse could try until her knuckles bled and throat burned. she could try again and again. and she could succeed. she would succeed. in every fight, every competition, clarisse never threw in the towel. she kept her feet planted and movements sharp; there were very few who even took the chance to go up against her.

she knew she was the best in the area cabin; some would even argue she was the best at camp. but no matter how many times she won at capture the flag, beat her sparing partner, or dominated training sessions, it never mattered to her father. clarisse could move a mountain, change the tide, defeat a giant, and burn every single enemy on the battlefield to the ground, but it would never be enough to earn the praise of ares. he claimed her, not as a warrior or one of his kin who would fight his battles on Earth. ares claimed clarisse as a daughter. when he looked at her, he would never see his legacy.

clarisse was not an idiot. when ares looked at his sons, he saw glory. his eyes twinkled and mind ran with a million different ways his children sons would make him proud. but when he looked at clarisse among the best and most brutal of their cabin, he saw something else within her; he saw an the worst parts of himself, parts even a god didn’t understand, in the eyes of his daughter. he did not see glory, but his rage, kindled by the heart of her mother. he saw something human, dejected, and vengeful in the wrong ways. there was no glory for a daughter ares. so she’d have to settle for revenge.

[theeggoman]

Area Bakugou for this month's Pin Club!

[dailyfigures]

Kongou ; Arpeggio of Blue Steel ☆ Funny Knights

[kapittx]

High-Impact Strategy for Dunning Management: Increase Cash Flow And Reduce DSO

Special collection efforts are targeted initiatives designed to address specific objectives within the broader context of accounts receivable management. One such critical objective is reducing the value and quantity of seriously aged invoices. This effort to reduce the value and aged open items can significantly hog senior management time and can be mentally draining. Often these aged items are defined as 90 to 120 days and above and can be found in the far right column of the receivables aging report. These receivables are at the greatest risk of bad debt loss. Longer they remain unpaid the higher the risk of never recovering them and will directly impact your bottom line. These receivables do not get unnoticed and both senior management as well as auditors monitor them.

Dunning management is a critical process for businesses that ensures the timely collection of outstanding payments. In this blog, we’ll explore the intricacies of these efforts and their impact on financial health, cash flow and to reduce DSO.

What Is Dunning Management?

Dunning management refers to the systematic approach businesses use to handle overdue payments from customers. It involves a series of steps aimed at recovering outstanding balances while maintaining positive customer relationships.

High Impact Strategy for Dunning Management

Aged receivables—those lingering unpaid balances—pose a significant challenge for businesses. They carry the risk of bad debt loss, demand provisioning in the bad debt reserve, and attract scrutiny from senior management and auditors. But how can companies strike the right balance between resource allocation and recovery?

In this blog post, we’ll explore a high-impact strategy for dunning management—one that optimizes collections while maintaining cash flow and customer relationships.

The Dilemma

Resource Allocation vs. Payback:

Aged receivables demand attention, but allocating substantial resources for their recovery may yield only modest returns.

Writing them off, however, is prohibitively expensive.

Impact on Cash Flow:

If collection staff focuses excessively on aged accounts, normal collection efforts suffer, affecting cash flow.

The Solution: A Strategic Approach

1. Segment Your Receivables Portfolio

Customer Attributes:

Categorize receivables based on customer characteristics (e.g., size, domestic vs. foreign, government vs. private sector).

Consider line of business, reseller/partner vs. end user, and other relevant factors.

Map the receivable based on invoice-to-cash life stages ( e.g., invoice which are collectable, disputed, under going legal litigations or provisioned )

Billing Status:

Distinguish between billed and unbilled accounts.

Each segment requires a specialized approach.

2. Develop High-Speed Procedures

Customized Workflows:

Document procedures for each segment (e.g., call blitz, collection letters, reconciliation packs).

Tailor communication to the specific needs of each group.

 3. Implement a Collection Infrastructure

Empowerment and Escalation:

Define negotiation empowerment levels.

Establish an escalation protocol for unresolved disputes.

Document Retrieval and Credit Controls:

Streamline access to relevant documents.

Tighten credit controls to prevent further delinquency.

4. Organizational Design

Utilize Existing Staff:

Design the organization to execute the high-impact action plan.

Consider supplements for administrative or reconciliation support.

Training and Tools:

Train staff in high-speed procedures.

Provide workspace, tools, and resources.

5. Monitor and Measure Progress

Collection Activity Plan:

Track both activities (inputs) and results (outputs).

Regularly assess progress against targets.

6. Launch and Drive Results

Secure Management Approval:

Gain buy-in from leadership.

Announce the program to the organization.

Hands-On Supervision:

Manage the program with experienced, tactical oversight.

Continuously drive results.

By strategically addressing aged receivables, businesses can unlock cash flow, reduce bad debt risk, and maintain healthy customer relationships. Remember, it’s not just about collecting money—it’s about optimizing resources for maximum impact. 

Key Components To Execute Dunning Management Strategy

Dunning management strategy should enable you to build customer trust and ensure long-term relationships. Design a comprehensive communication strategy using emails and phone calls as payment reminder tools

1. Communication Channels:

Emails: Sending automated emails with friendly reminders about overdue payments.

Phone Calls: Personalized calls to discuss payment issues

2. Dunning Levels:

Level 1 (Soft Reminder): Gentle reminders about the due payment.

Level 2 (Intermediate): More assertive communication, emphasizing the urgency.

Level 3 (Final Notice): Clearly stating consequences if payment isn’t made promptly.

Download eBook – Top 10 Dunning Management Email Templates

3. Automated Workflows

Setting up workflows triggered by payment due dates.

Escalating communication based on predefined rules.

4. Payment Retry Logic:

Automatically retry failed payments.

Adjust retry intervals based on customer behavior.

5. Customer Segmentation:

Segmenting customers based on payment history, loyalty, and responsiveness.

Tailoring dunning strategies accordingly.

Best Practices for Effective Dunning

https://www.kapittx.com/wp-content/uploads/2024/08/Best-Practices-for-Effective-Dunning-1.jpg

1. Personalization:

Address customers by name.

Customize messages based on their payment history.

2. Clear Communication:

Be concise and transparent about outstanding balances.

Explain the consequences of non-payment.

Helping customers understand the importance of timely payments without feeling pressured

3. Timing Matters:

Send reminders before due dates.

Gradually escalate communication as deadlines approach.

4. Flexible Payment Options:

Offer alternative payment methods.

Allow partial payments if necessary.

5. Data-Driven Insights:

Analyze dunning performance metrics.

Adjust strategies based on success rates.

Conclusion

Dunning management is more than just chasing payments; it’s about maintaining customer trust and ensuring long-term relationships. By implementing effective dunning processes, businesses can improve cash flow, reduce churn, and foster positive customer experiences.

Remember, successful dunning isn’t just about collecting money—it’s about nurturing valuable connections.

Click here to see a case study from Kapittx.

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Check out Kapittx’s LinkedIn here.

[yloiseconeillants]

We'll meet again Don't know where Don't know when But I know we'll meet again Some sunny day

Finally posed that rooftop party I have been threatening to pose since I moved to pc, with 15 minutes to spare before maintenance, even. The GAP and friends are (first photo, left to right):

Outis @mythandral

Mnemosyne @hermits-hovel

Hades, our Collective OC

Minthe @tallbluelady

Daedalus @azure-dragonsinger

Erasmos @azure-dragonsinger

Icarus @hermits-hovel

Kytheon @mythandral

Timoria @lilbittymonster

Panthea @whatsthisascianbullshit

Ares Nemo @abyssalmermaiden

Iris and Ariadne are my awful clowns

[spartanexperience]

Curious! What's the relationship between Eos and Fear & Terror?

She of course loves her new sons (along with daughter Harmonia, my oc) with her whole heart!! :) And Fear and Terror really enjoy having a parental figure in their life who is a 100% polar opposite to their mega strict dad. Yes they're those kids who go and ask Eos instead, if Ares won't give them permission to go to the Orpheus concert LOL

[thefrogdalorian]

Pass driving test ✅

Acquire cute Din & Grogu keyring for car keys✅

[hell-dusk]

some sims I’ve made over the years