subject: Accounts Receivable Management(arm) And Modern Technology [print this page] Account Receivable management is based upon the following three pillars.
1. Invoicing Services - This entails the entire process of the issuance of invoices. ensuring they are drafted in a correct and professional way according to the legal requirements of the country where it will be sent to. Most companies offering invoicing services will in addition arrange for the invoice being addressed correctly at a verified address in this way making sure they are well received at clients.
2. Payment Monitoring - This included the actual follow up and monitoring of compliance of your clients with their payment obligations. Also, the sending of reminders and notices shortly before an invoice approaches its expiration date, and the making of collections calls when an invoice gets overdue. Most ARM businesses have in-house collection departments enabling them to commence pre-legal debt collection procedures against stubborn debtors.
3. Credit insurance - Credit Insurance programs are a commercial instrument which are mainly focused at optimizing a business its continuity. They essentially secure their cash flow by insuring invoice amounts so they never have to worry any longer about not getting paid. As soon as an invoice expires over a pre-defined time span, the insurance policy will pay the invoice amount. The offered policies mostly depend upon the trade sector, total trade volumes, and several other risk calculations.
Next Level Risk Management and Modern Technologies
Any modern and professional AR Management business which wants to be taken seriously will have above stated neatly implemented and administered in a piece of ARM Software. The set of technologies available to businesses is ever expanding and companies are constantly in the process adapting to latest technologies looking out for efficiency improvements. The same applies for the ARM sector which in essence fares on an efficient administration and transparent communication procedures. Its capacity to process documents, payments, calls etc. in high volumes is exactly its added value and why they are of interest to their clients.
But as told so many times before, its not quantity, but the quality which will eventually count. Efficient administration, easy and user friendly access for clients, data security and privacy protection are issues often neglected. The solutions should be sought in technologies as Cloud computing which are termed as SaaS Software as a Service(SaaS). Solutions based on Force.com (Salesforce systems) which are operating 'in the cloud' do have the future, and will as one of few qualify to guarantee all above mentioned requirements.
