AR Management
AR management analysis involves evaluating and analysing the collection process of customer payments within a business. It focuses on assessing the efficiency and effectiveness of collecting outstanding receivables from customers. By conducting AR management analysis, businesses can identify trends, patterns, and potential bottlenecks in the collection process. This analysis helps in optimizing credit and collection policies, reducing bad debts, improving cash flow, and maintaining positive customer relationships. It enables companies to develop strategies for timely and successful collection of payments, ensuring financial stability and sustainability.
- Key performance indicators used to measure and track the performance of the collections department, such as collection rate, days sales outstanding (DSO), and bad debt ratio.
- Analysing the age of outstanding receivables to identify overdue payments, assess the creditworthiness of customers, and prioritize collection efforts.
- A comprehensive view of the customer profile, including their purchasing history, payment behaviour, outstanding balances, and interactions, enabling a holistic understanding of the customer relationship.
- Assessing and measuring the level of satisfaction and loyalty among customers, often through to improve service quality and strengthen customer relationships.
- Analysing the timeliness of customer payments to identify trends, patterns, and incentives that encourage prompt payment and reduce delinquencies.
- A tool or system used to monitor and track the progress of collection efforts, providing real-time visibility into outstanding invoices, payment statuses, and collection activities.
