{"id":43,"date":"2020-08-05T11:51:51","date_gmt":"2020-08-05T11:51:51","guid":{"rendered":"https:\/\/www.emagia.com\/blog\/?p=43"},"modified":"2025-01-28T00:15:08","modified_gmt":"2025-01-28T06:15:08","slug":"why-accounts-receivable-management-is-moving-to-the-cloud","status":"publish","type":"post","link":"https:\/\/www.emagia.com\/blog\/why-accounts-receivable-management-is-moving-to-the-cloud\/","title":{"rendered":"Why Accounts Receivable Management is Moving to the Cloud?","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"<p>Is the cloud too risky for <strong>accounts receivable (AR) management<\/strong>? Should I continue to wait for IT resources? Or should I take advantage of a modern cloud-based integrated enterprise receivables management solution? These are the questions on the minds of many finance executives focused on modernizing their AR function. Read this blog for an insight into good AR management practices in the age of AI-based cloud.<\/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\/why-accounts-receivable-management-is-moving-to-the-cloud\/#what-is-accounts-receivable-management\" >What is Accounts Receivable Management?<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.emagia.com\/blog\/why-accounts-receivable-management-is-moving-to-the-cloud\/#accounts-receivable-management-in-the-age-of-ai-cloud\" >Accounts Receivable Management in the Age of AI-Cloud<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.emagia.com\/blog\/why-accounts-receivable-management-is-moving-to-the-cloud\/#key-drivers-of-cloud-adoption-in-order-to-cash-transformations\" >Key Drivers of Cloud Adoption in Order-to-Cash Transformations<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.emagia.com\/blog\/why-accounts-receivable-management-is-moving-to-the-cloud\/#1-respond-rapidly-to-business-model-changes\" >1. Respond Rapidly to Business Model Changes<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.emagia.com\/blog\/why-accounts-receivable-management-is-moving-to-the-cloud\/#2-align-it-with-ar-department-on-modernization\" >2. Align IT with AR Department on Modernization<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.emagia.com\/blog\/why-accounts-receivable-management-is-moving-to-the-cloud\/#3-reduce-capital-expenditures\" >3. Reduce Capital Expenditures<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.emagia.com\/blog\/why-accounts-receivable-management-is-moving-to-the-cloud\/#emagia-edge-in-cloud-based-o2c-solutions\" >Emagia Edge in Cloud-based O2C Solutions<\/a><\/li><\/ul><\/nav><\/div>\n\n<h2><span class=\"ez-toc-section\" id=\"what-is-accounts-receivable-management\"><\/span><strong>What is Accounts Receivable Management?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><img decoding=\"async\" src=\"\/blog\/wp-content\/themes\/mainblog\/assets\/images\/accounts-receivable-management-is-a-key-function-of-various-processes.jpg\" alt=\"What is accounts receivable management and automation software: credit, invoicing, payments, collections, cash flow forecasting, deductions and dispute resolution, cash application\" width=\"906\" height=\"550\" \/><\/p>\n<p><strong>Accounts receivable management<\/strong> is a key function in most businesses. It consists of various processes including credit, invoicing, payments, collections, cash flow forecasting, deductions and dispute resolution, cash application etc. Good AR management ensures payments owed to the company are collected on time. It also ensures timely cash flow and working capital, minimizes bad debts, improves customer relationships and reduces the number of follow-ups from staff. A well-managed, efficient system nurtures lasting customer relationships while boosting revenue and profitability.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"accounts-receivable-management-in-the-age-of-ai-cloud\"><\/span><strong>Accounts Receivable Management in the Age of AI-Cloud<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>According to a Gartner story, one in every five finance organizations plan to use the cloud for <a href=\"https:\/\/www.emagia.com\/blog\/accounting-data-analytics-the-new-normal-for-shared-services\/\"><strong>accounting operations and analytics<\/strong><\/a>. The study reveals a significant jump in the adoption of the Cloud and Software-as-a-Service (SaaS) in finance departments. It is no surprise that Oracle, SAP, NetSuite, Workday and many other enterprise financial apps vendors have reported a rise in the adoption of their cloud-based financial applications.<\/p>\n<p>High-performing finance teams are leveraging cloud technologies where the impact is most immediate, the business problem is well-defined and requires short time to value. Many transactional processes that require specialized point solutions to augment their ERPs are moving to the cloud rapidly.<\/p>\n<p>Whether it is reducing the Days Sales Outstanding (DSO), mitigating credit risk or decreasing human resource expenses, it makes good business sense to have a discussion with the CIO of your organization about cloud solutions.<\/p>\n<p>The risks of data security are much lower than the risks of maintaining a status quo on an outdated receivables management system. What Amazon, Google, HP and other cloud providers are providing today for security and scalability in their public clouds outbeat most private enterprise networks.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"key-drivers-of-cloud-adoption-in-order-to-cash-transformations\"><\/span><strong>Key Drivers of Cloud Adoption in Order-to-Cash Transformations <\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Here are some of the factors driving cloud adoption in the order-to-cash transformations:<\/p>\n<h3><span class=\"ez-toc-section\" id=\"1-respond-rapidly-to-business-model-changes\"><\/span><strong>1. Respond Rapidly to Business Model Changes<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Most businesses are witnessing significant changes in their business models to stay competitive. Cloud-based <a href=\"https:\/\/www.emagia.com\/products\/receivables-management-and-automation-software\/\"><strong>accounts receivable automation management <\/strong><\/a> platform that includes credit and collections management has faster deployment cycles and provides quick and tangible wins on cash flow performance.<\/p>\n<p>On-premise and ERP-based solutions deliver slower and often lower performance improvements. They require more IT resources, longer time for deployment and higher budgets for maintenance. Switching over to cloud can help businesses to quickly respond to market changes and deploy upgrades faster thereby making way for a more efficient accounts receivable automation.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2-align-it-with-ar-department-on-modernization\"><\/span><strong>2. Align IT with AR Department on Modernization<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Gaining IT priority is one of the biggest issues for new system implementations or upgrades in the AR departments. Many businesses have realized that their customized ERP or advanced collections modules of their ERP or any on-premise systems implemented in \u201890s are outdated.<\/p>\n<p>Upgrading these legacy systems can be costly, time-consuming, and often difficult to gain IT priority. Migrating to modern cloud-based financing and accounting SaaS solutions, for better productivity features, better user-experience and better financial performance \u2013 all without any major IT support \u2013 is a great alternative.<\/p>\n<p>Moreover, with the current global uncertainty bringing Accounts Receivable (AR) back into focus for businesses, many businesses are adding intelligent AR management tools to optimize their cash flow and working capital. Cloud-based AR management platforms act like a plug-and-play tools to enhance productivity, profitability and customer experience.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3-reduce-capital-expenditures\"><\/span><strong>3. Reduce Capital Expenditures<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Cloud solutions are often pay-as-you-go model, which gives a huge advantage for finance organizations that do not want to deal with high capex costs. Cloud-based Order-to-Cash (O2C) solutions are proliferating rapidly in mid-size companies as their CFOs and CIOs are leveraging the time, cost, and scalability advantages of the cloud.<\/p>\n<p>Large organizations also understand that the huge license and maintenance costs of their on-premise solutions can be replaced with significantly lower monthly subscription fees of cloud solutions which deliver the promise of continuous innovation.<\/p>\n<p>Put Emagia Cloud-based AI-powered Order-to-Cash Automation Platform, Enterprise Resource Management System, to drive exponential efficiency in your order-to-cash process.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"emagia-edge-in-cloud-based-o2c-solutions\"><\/span><strong>Emagia Edge in Cloud-based O2C Solutions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Emagia\u2019s AI-powered <strong><a href=\"https:\/\/www.emagia.com\/products\/enterprise-receivables-management-suite\/\">Enterprise Receivables Management System<\/a><\/strong> is a cloud platform for mid-size to large, global companies and their shared services. Emagia transforms the order-to-cash process by leveraging Automation, Analytics and AI to next generation hyper efficient digital receivables process. Emagia\u2019s O2C process includes digital credit, digital invoicing, digital payments, digital collections, digital cash flow forecasting, digital deductions, digital cash application, customer EIPP portal, digital assistant Gia with over 6 personas, digital document data extraction, digital data lake with deep and advanced digital O2C analytics.<\/p>\n<p>Emagia has over 15 years of proven track record of delivering world-class performance in order-to-cash operations for global businesses and has processed over <strong>$850B<\/strong> in receivables, in over <strong>90<\/strong> countries, in more than <strong>25 <\/strong>languages, connecting a network of over <strong>170<\/strong> banks, with over <strong>120<\/strong> financial systems, and processing global payments in over <strong>135<\/strong> currencies.<\/p>\n<p>For more information on how you can leverage Emagia\u2019s cloud-based order-to-cash automation solutions, <a href=\"https:\/\/www.emagia.com\/request-a-demo\/\"><strong>ask for a demo<\/strong><\/a><\/p>\n","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"excerpt":{"rendered":"<p>Is the cloud too risky for accounts receivable (AR) management? Should I continue to wait for IT resources? Or should I take advantage of a modern cloud-based integrated enterprise receivables management solution? These are the questions on the minds of many finance executives focused on modernizing their AR function. Read this blog for an insight &hellip;<\/p>\n<p class=\"read-more\"> <a class=\"\" href=\"https:\/\/www.emagia.com\/blog\/why-accounts-receivable-management-is-moving-to-the-cloud\/\"> <span class=\"screen-reader-text\">Why Accounts Receivable Management is Moving to the Cloud?<\/span> Read More &raquo;<\/a><\/p>\n","protected":false,"gt_translate_keys":[{"key":"rendered","format":"html"}]},"author":1,"featured_media":2408,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[6],"tags":[],"class_list":["post-43","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\/43","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=43"}],"version-history":[{"count":0,"href":"https:\/\/www.emagia.com\/blog\/wp-json\/wp\/v2\/posts\/43\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.emagia.com\/blog\/wp-json\/wp\/v2\/media\/2408"}],"wp:attachment":[{"href":"https:\/\/www.emagia.com\/blog\/wp-json\/wp\/v2\/media?parent=43"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.emagia.com\/blog\/wp-json\/wp\/v2\/categories?post=43"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.emagia.com\/blog\/wp-json\/wp\/v2\/tags?post=43"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}