Time to Automate Accounts Receivable

The purpose of credit is to generate sales, which are then provided on the trust that payment will be received at an agreed time. Once the payment is made, the sale is closed and can be released as profit – which in real terms is cash.

Organizations have varied and different challenges, but one constant is cash is critical. In a recent report by PwC, they cited “64% of respondents noted they have an increased focus on working capital management.” At a time when cash is going to be not as free-flowing as in recent times, the management of cash, the need for working capital, and realisation of profits are now at the forefront for all business leaders.

Therefore, who in finance or Accounts Receivable doesn’t want to have more time to collect cash from sales? Who in finance or Accounts Receivable doesn’t want to have more time to manage the risk of providing credit to generate sales?

More cash? More time? #nobrainer

A catalyst for change!

Sometimes we get stuck in doing what we have always done, usually because we are so busy. I mean, who isn’t busy – endless video conference calls and balancing the books, children, life? In recent weeks and months, our working practices, and where we perform our duties have changed beyond what we might have expected at the turn of 2020.

Credit and Finance Professionals have been forced to review how they perform certain processes and the tasks involved. Cash application has certainly been one of the areas in the spotlight as electronic payments have increased and replaced checks. Whilst it is always good to have the money in the bank, it has caused a knock-on effect on the application of payments as the remittance for the payment has been lost in transit or is in someone’s inbox, which has been furloughed. This results in an increasing amount of unapplied cash and the amount of re-work to complete the reconciliation. Ultimately impacting the visibility of what debt is outstanding for the credit controllers to collect.

Suddenly, the need for quick and accurate cash application is crucial. The need for visibility of each and every sales ledger account also increases in order to show real-time debtor positions.

Therefore, is now the time for Intelligent Automation of the cash application process? We think it’s time processing customer payments is not only maintained but improved.


I will do it tomorrow!

McKinsey’s latest report on introducing the next generation of operating model cites, “as much as 45% of employee activities can be automated by adopting current technologies. That is calling into question how businesses work, build skills, and deliver customer experiences.” But research tells us that less than 20% of finance transformation projects have been completed and some 40% haven’t got past first base! People put things off usually because of fear of failure or lack of confidence.

The good news is that you can learn from the experience of others.

Imagine if you could see other organizations in your industry or similar businesses and learn how implementing automated cash application has positively impacted their organization. Has it been a catalyst for significant improvement? Now think about applying it to your own organization, do you feel more confident and assured that the project would be a success?

The good news is you don’t have to imagine it. Talk to fellow peers who have improved their efficiency of the cash application process. Understand who has increased their automation levels above 70% – these are organizations to learn from with what is described by the Hackett Group as ‘world-class automation’.


How long!

One of the obstacles to overcome is that too many of us have been involved in too many projects that have gone over the time frame promised and the cost vital budget. Forbes suggests “of the $1.3 trillion spent on digital transformation in 2018, an estimated $900 billion was wasted when initiatives didn’t meet their goals.”

Now for the good news.

We deploy Rimilia Cash using our Rapid Time to Value model with clear, concise, and focused outcomes so that our customers can realise their business case in a matter of weeks. Because we want you to start benefiting from automation as quickly as possible, we provide peace of mind, with ROI in just 12 weeks.

Who wouldn’t want to say goodbye to chasing customers for remittances rather than having a conversation about the next order?

Rimilia Cash is a #nobrainer.

Time is precious – and valuable!

Where are you going to spend your time and your credit team’s time? Continually fighting the clock doing what you do today? Or are you going to invest some time into transforming the Order to Cash process?

Intelligent Automation of the cash application process is not just about deploying Robotic Process Automation to eliminate manual tasks, but it is about shrinking the processing time and manual effort by layering machine learning to reduce the tasks required.

Rimilia has a strong track record from hundreds of customers that have benefited from increased efficiency by moving from manual processing to intelligent automation, enabling their credit team to focus on value-added activities and maximising their time to collect cash – it’s time to take action.


Be ready, be resilient

Change has happened, and change will continue, of that, we can be sure. We know things will not return to ‘normal’, but we don’t know how the future will look. We are perhaps also more concerned of another black swan event occurring again or indeed Covid-19 returning for a second time to upset our world.

So now is the time to be resilient, and put into place changes that will improve your performance in both efficiency and effectiveness now, but also make you resilient for the challenging times we face ahead.

Intelligent Accounts Receivable, starting with the automation of cash allocation, is now a #nobrainer.

Now is the time

Making the investment in automating cash application will reap benefits and pay for itself in a short amount of time, in terms of direct costs.

Improve your visibility of customer indebtedness and ensure your credit team is spending time on value-added tasks that deliver results.

Learn more about Intelligent Automation and download our new no brainer guide – Rimilia Cash really is a no brainer right now.


Brian Morgan

CFO Advisory & Growth Partner Director