What Is Accounts Receivable (AR) Turnover Ratio? If money is not coming in from customers as agreed and expected, cash flow can dry to a trickle.Ĭonversely, when collections are managed efficiently, the business’ cash flow becomes more predictable, collection costs are lower and its balance sheet is healthier, which is a very important factor when a company seeks to obtain credit, invest in growth and attract investors. We’ll show you how to leverage these automated account receivable tools to get in-depth insights into your accounting efficiency and suggest specific improvements to generate results quickly.The accounts receivable turnover ratio is one metric to watch closely as it measures how effectively a company is handling collections. This makes it easier for customers to pay they’ll have error-free records with all of their account details attached, making it less likely the payment process will get bogged down with human error-related problems.īest of all, automated accounts receivable solutions are relatively easy to set up in your accounting department, particularly when you have an experienced partner behind you.Īt Gaviti, we have a time-tested process for integrating our collections management solutions into different companies’ A/R departments. By doing so, you can begin to generate automated reminder emails or follow-ups complete with each customer’s payment information. Create smarter workflows – Set up custom workflows for each client that take into account their payment details and schedules. You can also choose to accept different payment methods as needed by your clients. Leverage A/R collection platforms to offer multiple payment plans customized to each client’s situation.
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