{"id":184,"date":"2021-01-27T05:21:00","date_gmt":"2021-01-27T05:21:00","guid":{"rendered":"https:\/\/www.emagia.com\/blog\/?p=184"},"modified":"2025-01-28T22:40:41","modified_gmt":"2025-01-29T04:40:41","slug":"five-modern-enterprise-ar-management-strategies","status":"publish","type":"post","link":"https:\/\/www.emagia.com\/blog\/five-modern-enterprise-ar-management-strategies\/","title":{"rendered":"5 Modern Enterprise AR Management Strategies for Revenue Growth","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"<div class=\"row justify-content-center\">\n<div class=\"col-md-10\">\n<div id=\"edge\">\n<div class=\"event-video-block event-video-block1\">\n<div class=\"image-block general-banner-image\">\n<div><a href=\"#\" class=\"event-video-play event-video-play1\"><\/a><img decoding=\"async\" src=\"https:\/\/i.ytimg.com\/vi\/qQQ34SqQh0o\/maxresdefault.jpg\" alt=\"Strategic AR Management\" class=\"img-fluid screenshot\"><\/div>\n<\/div>\n<div class=\"video-iframe\"><\/div>\n<\/div>\n<div><script>$(document).ready((function () { $(\".event-video-play1\").click((function () { $(\".event-video-block1 .event-video\").addClass(\"show\"), $(\".event-video-block1 .image-block\").addClass(\"hide\"); return $(\".video-iframe\").html('<iframe id=\"youtubeVideo1\" width=\"auto\" height=\"auto\" class=\"inline-frame\" src=\"https:\/\/www.youtube.com\/embed\/qQQ34SqQh0o?start=1&#038;autoplay=1\" frameborder=\"0\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen=\"\"><\/iframe>'), !1 })) }));<\/script><\/div>\n<\/div>\n<\/div>\n<\/div>\n<p>Credit departments play a substantial role in increasing revenue, by approving credit sales to higher risk customers in foreign and domestic markets. In addition to new geographic markets, this can include end-users vs distributors and\/or retailers as well as entirely new customers. Of course, credit risk will need to be intensively managed for these customers. In traditional <strong>AR management strategies<\/strong>, the focus is on transaction processing, collections assertiveness, tight <a href=\"https:\/\/www.emagia.com\/resources\/videos\/gaining-control-on-global-credit-and-collections-with-dashboards-and-analytics\/\"><strong>credit control<\/strong><\/a>, and reduced headcount.<\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-flat ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.emagia.com\/blog\/five-modern-enterprise-ar-management-strategies\/#1-driving-margin-growth\" >1. Driving Margin Growth<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.emagia.com\/blog\/five-modern-enterprise-ar-management-strategies\/#2-providing-an-exceptional-customer-experience\" >2. Providing an Exceptional Customer Experience<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.emagia.com\/blog\/five-modern-enterprise-ar-management-strategies\/#3-managing-credit-risk\" >3. Managing Credit Risk<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.emagia.com\/blog\/five-modern-enterprise-ar-management-strategies\/#4-generating-strong-cash-flow\" >4. Generating Strong Cash Flow<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.emagia.com\/blog\/five-modern-enterprise-ar-management-strategies\/#5-achieving-ultra-efficiency\" >5. Achieving Ultra Efficiency<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>However in today\u2019s economy of lower revenue, extremely low interest rates, and management focus on the customer experience, requires a substantial change from traditional <a href=\"https:\/\/en.wikipedia.org\/wiki\/Accounts_receivable\" target=\"_blank\" rel=\"nofollow noopener\"><strong>AR management<\/strong><\/a>. Transaction management now needs to transform into customer management, the solution here is efficient AR management strategies. The following are five modern <a href=\"https:\/\/www.emagia.com\/press-releases\/emagia-once-again-recognized-as-a-market-leader-in-idcs-marketscape-for-enterprise-accounts-receivables-automation-applications\/\"><strong>accounts receivable automation strategies for enterprises<\/strong><\/a> that can boost revenue and growth.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"1-driving-margin-growth\"><\/span><strong>1. Driving Margin Growth<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img decoding=\"async\" loading=\"lazy\" src=\"\/blog\/wp-content\/themes\/mainblog\/assets\/images\/driving-margin-growth.jpg\" alt=\"Driving Margin Growth\" width=\"700\" height=\"400\"><br \/>\n  The <a href=\"https:\/\/www.emagia.com\/resources\/videos\/automating-the-credit-process-transforming-to-electronic-credit-department\/\"><strong>credit department<\/strong><\/a> can also boost profit margins by prompt identification and vigorous collection of invalid deductions, and by quantifying the margin loss of self-inflicted deductions (e.g., mis-labelling of cartons which results in a fine from the customer), and by pushing for corrective actions to reduce them. In addition, the <a href=\"https:\/\/www.emagia.com\/resources\/videos\/automating-the-credit-process-transforming-to-electronic-credit-department\/\"><strong>credit department<\/strong><\/a> can identify the high <a href=\"https:\/\/thecreditapplication.com\/\" target=\"_blank\" rel=\"noopener nofollow\">credit<\/a> risk customers and advocate higher risk-adjusted prices (and margins) for these accounts.<\/p>\n<p>Finally, by implementing automated, rapid, efficient dispute and deduction resolution processes, they can free up the sales team time from administrative &amp; AR issues, thereby providing \u201cfree\u201d additional sales reps.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"2-providing-an-exceptional-customer-experience\"><\/span><strong>2. Providing an Exceptional Customer Experience<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img decoding=\"async\" loading=\"lazy\" src=\"\/blog\/wp-content\/themes\/mainblog\/assets\/images\/providing-an-exceptional-customer-experience.jpg\" alt=\"Providing an Exceptional Customer Experience\" width=\"700\" height=\"400\"><br \/>\n  The <a href=\"https:\/\/www.emagia.com\/go-digital-in-your-credit-department\/\"><strong>credit department<\/strong><\/a> can enhance their customers\u2019 experience by accommodating their preference to pay via various electronic &amp; mobile modalities, providing a high degree of self-service capability (24\/7\/365), and by rendering fast, professional \u201cfirst call\u201d solutions to queries and disputes.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"3-managing-credit-risk\"><\/span><strong>3. Managing Credit Risk<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img decoding=\"async\" loading=\"lazy\" src=\"\/blog\/wp-content\/themes\/mainblog\/assets\/images\/managing-credit-risk.jpg\" alt=\"Providing an Exceptional Customer Experience\" width=\"700\" height=\"400\"><br \/>\n  Ultimately, it is the credit department that must manage the trade-off between incremental revenue and the company\u2019s expressed risk tolerance, and establish the capability to sell profitably to high risk customers &amp; markets. A good question to ask is: \u201cis your bad debt too low?\u201d<\/p>\n<h2><span class=\"ez-toc-section\" id=\"4-generating-strong-cash-flow\"><\/span><strong>4. Generating Strong Cash Flow<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img decoding=\"async\" loading=\"lazy\" class=\"alignnone\" src=\"\/blog\/wp-content\/themes\/mainblog\/assets\/images\/generating-strong-cash-flow.jpg\" alt=\"Generating Strong Cash Flow for AR Management Strategies\" width=\"700\" height=\"400\"><br \/>\n  Here again, it is the credit department that must generate a strong cash flow from AR consistent with the financial strength of the customer base and payment terms granted. They must ensure strong portfolio coverage of delinquent customers both to generate cash and to reduce credit risk.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"5-achieving-ultra-efficiency\"><\/span><strong>5. Achieving Ultra Efficiency<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img decoding=\"async\" loading=\"lazy\" src=\"\/blog\/wp-content\/themes\/mainblog\/assets\/images\/achieving-ultra-efficiency.jpg\" alt=\"Providing an Exceptional Customer Experience\" width=\"700\" height=\"400\"><br \/>\n  With today\u2019s AI powered technology specifically developed for credit departments, they are well positioned to deliver the ultra-efficiency demanded by the competitive global marketplace. A combination of artificial intelligence powered digital automation, robotic automation, best-of-breed applications, and re-designed processes &amp; policies enable achievement of ultra-efficiency.<\/p>\n<p>No matter what the economic conditions are, cash will always remain the king. However, strategic AR recognizes that the credit department must and can improve the other compelling priorities of revenue &amp; margin growth and enhancement of the customer experience.<\/p>\n","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"excerpt":{"rendered":"<p>Credit departments play a substantial role in increasing revenue, by approving credit sales to higher risk customers in foreign and domestic markets. In addition to new geographic markets, this can include end-users vs distributors and\/or retailers as well as entirely new customers. Of course, credit risk will need to be intensively managed for these customers. &hellip;<\/p>\n<p class=\"read-more\"> <a class=\"\" href=\"https:\/\/www.emagia.com\/blog\/five-modern-enterprise-ar-management-strategies\/\"> <span class=\"screen-reader-text\">5 Modern Enterprise AR Management Strategies for Revenue Growth<\/span> Read More &raquo;<\/a><\/p>\n","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"author":1,"featured_media":2364,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[6],"tags":[],"class_list":["post-184","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-receivables-automation"],"acf":[],"gt_translate_keys":[{"key":"link","format":"url"}],"_links":{"self":[{"href":"https:\/\/www.emagia.com\/blog\/wp-json\/wp\/v2\/posts\/184","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.emagia.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.emagia.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.emagia.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.emagia.com\/blog\/wp-json\/wp\/v2\/comments?post=184"}],"version-history":[{"count":0,"href":"https:\/\/www.emagia.com\/blog\/wp-json\/wp\/v2\/posts\/184\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.emagia.com\/blog\/wp-json\/wp\/v2\/media\/2364"}],"wp:attachment":[{"href":"https:\/\/www.emagia.com\/blog\/wp-json\/wp\/v2\/media?parent=184"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.emagia.com\/blog\/wp-json\/wp\/v2\/categories?post=184"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.emagia.com\/blog\/wp-json\/wp\/v2\/tags?post=184"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}