Maximise your liquidity
Accounts Receivable Management: AI-driven AR Automation
The automation of processes in accounts receivable management ensures that your company collects outstanding payments faster. Find out how you can significantly minimise your default risk using accounts receivable automation and artificial intelligence and how you can convert receivables into liquidity.
Status Quo
Current Challenges in Accounts Receivable Management
Customers today want the greatest possible flexibility when making payments. According to the EHI’s annual payment study, the most popular payment options are PayPal and purchase on account – as well as “buy now, pay later” (BNPL), i.e. the use of consumer credit. However, companies in e-commerce or with financial, insurance and supply contracts run the risk of numerous risks such as
- Delays in payment
- Complete loss of payment
- Problems with liquidity
Accounts receivable management (AR management) ensures that debtors pay their receivables on time. In addition, it has a direct impact on working capital and cash flow. AR management protects your company from payment defaults and liquidity bottlenecks. A functioning AR process is therefore a key requirement for the financial stability of companies, especially in economically volatile times.
Finance managers must adapt their accounts receivable management process to changing market conditions, taking into account trends such as BNPL, e-billing and digitalization. These are the areas to focus on:
- Efficiency: CFOs are under cost pressure and must increase efficiency in their area of responsibility.
- Customer experience: Even small errors in accounts receivable management have a negative impact on customer satisfaction.
- Compliance: The security of sensitive payment data is one of the biggest challenges for CFOs.
- Integrations: Departmental silos impair communication between different teams and IT systems such as CRM, ERP and accounting software.
- Risk management: Checking the creditworthiness of customers and risk analysis are complex but essential in order to reduce default risks.
- Data quality: The use, enrichment and analysis of data is a central task in Accounts Receivable Management and in the entire order-to-cash process. However, the necessary know-how and effective tools are often lacking.
Accounts Receivable Automation
Greater Performance Through AR Automation
The aim of AR management is to reliably process incoming payments and minimise potential delays. To achieve this, it is crucial that AR managers keep a constant overview of customer accounts and each individual payment. Nothing annoys customers more than being reminded of invoices that have already been paid.
Automated processes are a prerequisite for this. Unfortunately, the reality often looks dfferent: manually created invoices are sent by post and data is stored in outdated Excel spreadsheets that are difficult to find. This approach inevitably leads to errors and inefficiency. However, with accounts receivables automation (AR Automation), you will experience considerable efficiency benefits in invoice creation, the documentation of payment terms, the monitoring of receivables and in dunning.
Powerful accounts receivable management software that is specially tailored to the requirements of accounts receivable management is essential for this. Such a solution sustainably improves the efficiency of accounts receivable management and accelerates the entire order-to-cash cycle. Regardless of which payment method your customers choose, you will achieve the following results:
- Decreasing error rates
- Smooth customer communication
- Faster payments
- Optimized cash flow
Automate And Optimise in One Step: With Artificial Intelligence
The optimisation of AR efficiency using software is essential. However, measurable success can only be achieved if the underlying processes are seamlessly integrated and modernised from the very beginning. This is where artificial intelligence (AI) comes into play.
collect.AI combines efficient order-to-cash software with a self-learning algorithm. This ensures the
- holistic and continuous improvement of your
receivables management.
- automatic optimization of processes, which not only raises your database, but also your workflows to a higher level.
- that large volumes of data are analysed efficiently in order to identify patterns in historical transactions and enable precise cash flow forecasts.
- provision of in-depth data for optimal decisions. For example, the AI recognises increased payment risks and gives clear recommendations for adjusting credit limits or payment terms.
These KPIs Are Improved By Accounts Receivable Automation With AI
By combining AR management software and AI, the duration of outstanding receivables decreases and the accounts receivable management collections rate increases. You are also able to improve the following important key figures in your accounts receivable management:
- Days Sales Outstanding (DSO): The key figure indicates the average number of days between invoicing and receipt of payment. With AI from collect.AI, you can shorten your DSO by up to 72%.
- Collection rate: This KPI shows how effective your accounts receivable management is in collecting outstanding receivables and compares the amounts collected with the total receivables. collect.AI enables a permanent uplift of 10% and more.
- Accounts Receivable Turnover Ratio (ART): This KPI measures how quickly receivables are turned over by a payment be settled. By using collect.AI, companies ensure that over 90% of all receivables are paid before they are due.
GAMECHANGER
Automate Your AR Processes With collect.AI
Companies in sectors like finance, utilities or insurance for whom data protection and customer satisfaction are top priorities will find a reliable partner for AR transformation in collect.AI.
The accounts receivable management platform provided by collect.AI seamlessly enables you to get started with automated accounts receivable management. You set the pace and decide whether you want to automate step by step or hand over as many tasks as possible to the AI.
Smart assistants are available for specific workflow optimisations. They enrich your customer data, optimise landing pages and payment options and address debtors in a personalised manner and via the optimal channel.
WHY COLLECT.AI
Benefits of the Accounts Receivable Management Software From collect.AI
Through the orchestrated control of your order-to-cash cycle with collect.AI you
- optimise your processes continuously and holistically
- minimise the risks of payment delays and defaults
- provide optimal payment methods for customers
- enable your team to reduce errors in invoices
- ensure that credit memos, cancellations or complaints are automatically taken into account
- automate the documentation and monitoring of payment terms
- send payment reminders on time and with a personalised approach via the best communication channel
- improve debt collection and dunning
- receive a comprehensive overview of liquidity inflows
- improve your liquidity planning
The effectiveness of AI in accounts receivable management depends crucially on the database you are using. With collect.AI, you benefit right from the start from over 100 million anonymised training data from various industries that continuously and precisely optimise your processes with every transaction.
Maximise effectiveness
Digital Order-to-Cash And Receivables Management
By using collect.AI, you can significantly increase the performance values of your receivables management.
The AI from collect.AI
The best-trained AI for your O2C process
01
Proven
AI models
For numerous industries, customer
Clusters, use cases and target
Scenarios.
02
Unique data pool
The AI network effect and the high quality of the data enable extraordinary results.
03
Flexible automation
You determine the level of AI automation and are in control.
04
State of the art AI tool box
We use reinforcement learning, natural language processing, contextual bandits and deep Q networks.
05
EU AI Act ready &
GDPR-compliant
As a portfolio company of Aareal Bank Group, we meet the highest regulatory standards.
06
AI optimizes your results
AI also has a positive impact on cash flow, customer equity and costs.
07
Reliably fit for the future
Since 2016 – continuously optimized by leading data scientists using the latest methods.
Key Functions And Integrations Of collect.AI
With collect.AI, you can manage accounts receivable automatically and benefit from improved payment forecasts and liquidity forecasts. collect.AI supports your accounts receivable management with payment monitoring, among other things. The software also independently recognizes invoice content, payment agreements and payment patterns and creates forecasts to reduce risks and collection cases.
In addition to the AR functions, collect.AI offers flexible integrations. The order-to-cash solution integrates into existing IT systems – regardless of whether you rely on ERP systems such as SAP ERP, SAP S/4 Hana, PowerCloud or LynchTech or require a RESTful API, an integration layer or end-to-end connectors.
