In business, the term “cash is king” could not be more accurate. Modern CFOs, CEOs, Controllers, and Credit Managers understand the benefits of generating positive cash flow. If you want to grow your business, positive cash flow helps you invest in technology, new systems, improved processes, new offices, employees, machinery, and training. In challenging times, one obvious area to improve cash flow is accounts receivable management and collection.
Getting started with measuring Key Performance Indicators (KPIs) is important to track progress toward your growth goals. In this blog series, How to Get Started with Smart Accounts Receivable KPIs, we outline the 3 steps to employ KPIs to improve accounts receivable collections and increase cash flow. In this blog, we review 7 tips for developing your KPI strategy.
For more details, download our ultimate accounts receivable and collections guide How to Take a Winning Approach to A/R Collections. Our experts review strategies, tips, best practices, and industry benchmarks to help improve your cash flow and grow.
Step 1 - Establish an Accounts Receivable KPI Strategy
Step 2 - Determine what KPI Metrics to Measure
Step 3 - Implement Accounts Receivable KPI Automation
The basic goal of an A/R KPI strategy is to get more cash flowing and maintain good relations with customers. You need policies and procedures to keep customers on good terms, and to take action when they are delinquent. “An effective collections strategy includes a lot of information, documents, correspondence, and workflow processes – too much to manage manually, and ERP systems don’t have A/R management functionality robust enough to optimize collections." - Dynavistics' Ultimate A/R guide How to Take a Winning Approach to A/R Collections
Your accounts receivable KPI strategy should include the following:
Our collect-IT account receivable management solution integrates with your ERP. You get pre-built proven strategies to get started right away and customization tools to optimize further. You can count on our expertise to help you develop and implement unique KPI and collection strategies to fit your business. We help improve cash flow across various industries, including wholesale, distribution, food, and beverage, and professional services.
collect-IT is everything you need to manage accounts receivables, control credit, and detect potential issues in one collections dashboard. collect-IT is an easy, flexible, and powerful solution for small and medium-sized businesses. Learn more about collect-IT:
collect-IT provides you with the tools and insights to manage collections, analyze trends and ensure that your customers pay on time, every time.
Contact us today! Call us at 813.642.7230 ext. 409 or email.