# A new vision for the accounts receivable department Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2020-12-30 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: Maximising Cash Flow: Prioritising Accounts Receivable Department Meta Description: Discover how businesses can benefit from prioritising and innovating their accounts receivable department to ensure reliable cash flow during challenging URL: https://financedigest.com/a-new-vision-for-the-accounts-receivable-departmenthtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/graphicstock-photo-of-man-typing-on-laptop-and-sitting-at-the-table-while-looking-at-the-papers-of-home-financessuvv9nrng-scaled-1736838652981-compressed.jpg) _By **Colin Sanders,** Senior Business Executive, Onguard_ The need to maintain the smallest possible DSO levels has risen to prominence in order for businesses to sustain cash flow in these uncertain times. During such challenging periods we often find a renewed focus on the accounts receivable departments, just as we are seeing now. The last time we saw this was the 2008 recession, but the [focus has faded away during the period of relative stability](https://www.financedigest.com/fed-in-spotlight-with-us-focus-on-stability-first-republic.html "Fed in spotlight with US focus on stability, First Republic") since then. It is important to understand that the previous almost-decade of cash-rich stability was a window of [opportunity to reinvest into the business](https://www.financedigest.com/autonomous-vehicles-market-emerging-growth-analysis-future-demand-and-business-opportunities-2026.html "Autonomous Vehicles Market Emerging Growth Analysis, Future Demand and Business Opportunities 2026"), especially in the often-overlooked area of innovating and increasing the efficiency of the accounts receivable department. However, it is only now that many [businesses are coming](https://www.financedigest.com/any-business-can-now-offer-their-customers-financial-services-how-embedded-finance-is-reinventing-the-wheel-when-it-comes-to-banking.html "Any business can now offer their customers financial services: How embedded finance is reinventing the wheel when it comes to banking") to this realisation. **New challenges require new priorities** In times of need it is the accounts receivable department which can play the biggest role in ensuring the reliable [flow of cash into the business](https://www.financedigest.com/should-your-business-reconsider-invoice-financing-top-tips-on-why-reappraising-this-method-liberates-business-cash-flow.html "Should your business reconsider invoice financing? Top tips on why reappraising this method liberates business cash flow"). Other areas inside companies have been undergoing [digital innovations](https://www.financedigest.com/the-fibromyalgia-treatment-market-to-get-digitally-innovative.html "The Fibromyalgia Treatment Market to get digitally innovative"), but the accounts receivable department has often been left standing still, held back by a multitude of repetitive, manual tasks. With fresh [challenges facing global](https://www.financedigest.com/cup-holder-market-emerging-industries-challenges-and-threats-faced-by-key-vendors-and-global-business-outlook-till-2031.html "Cup Holder Market Emerging industries, Challenges and Threats Faced by Key Vendors and Global Business Outlook till 2031") economies, now is the time for businesses to prioritise the accounts receivable department. **Transformation through technology** ![Colin Sanders](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/colin-sanders-450x522-1736838652599-compressed.jpg) Colin Sanders Ensuring greater cashflow will [benefit the entire business](https://www.financedigest.com/benefits-of-instagram-ads-agency-melbourne-for-online-business.html "Benefits of Instagram ads agency Melbourne for online business"). Accordingly, supplying the accounts receivable team with the right [technology can provide](https://www.financedigest.com/is-your-technology-provider-holding-you-back.html "Is your technology provider holding you back?") many benefits, including reduced debtor days and time spent on disputes and customer segmentation, plus a decreased impact on margins. In addition, the use of systems which offer greater visibility across the [business as a whole can help to bring the credit](https://www.financedigest.com/the-definitive-guide-on-how-to-get-a-bad-credit-business-loan.html "The Definitive Guide on How to Get a Bad Credit Business Loan") controllers and sales teams together to work in parallel, which can offer better opportunities for business development and the maintaining of client relations. The impact of reducing the amount of repetitive, manual tasks for those within the accounts receivable department goes far [beyond the fiscal opportunities](https://www.financedigest.com/unlocking-fresh-business-investment-opportunities-beyond-covid.html "Unlocking fresh business investment opportunities beyond COVID"). Not only will doing so speed up processes and [reduce the risk](https://www.financedigest.com/driving-returns-and-reducing-risk-with-data.html "Driving returns and reducing risk with data") of human error, but it also frees up time for finance professionals to spend doing more value adding tasks, such as considering deeper analysis and strategies for improvement. **Aligning departments** Negative perceptions that the wider organisation may have of the team can [potentially be changed by applying new technologies to bring them in line with the rest of the business](https://www.financedigest.com/the-real-potential-of-web-3-0-and-blockchain-for-business.html "The Real Potential of Web 3.0 and Blockchain for Business"). [Automating the reporting process makes delivering crucial insights to the senior management](https://www.financedigest.com/impact-com-named-a-market-leader-in-research-in-actions-partner-management-automation-report-and-in-g2-winter-reports.html "impact.com Named a Market Leader in Research in Action’s Partner Management Automation Report and in G2 Winter Reports") team a more seamless process for both parties. Consequently, [key business](https://www.financedigest.com/foot-orthotic-insoles-market-to-generate-us-5-billion-by-2026-growth-key-business-strategies.html "Foot Orthotic Insoles Market to Generate US$ 5 Billion by 2026 | Growth & Key Business Strategies") decisions can be made quicker. Although the accounts [payable](https://www.financedigest.com/has-the-pandemic-accelerated-automation-in-accounts-payable.html "Has the pandemic accelerated automation in Accounts Payable?") and accounts receivable departments typically work separately, benefits can be achieved by aligning the technology used by both. For delicate contra accounts that both buy and sell from organisations, ensuring greater visibility between the two sides of the account can avoid any embarrassing instances of chasing a customer for [payment when the business](https://www.financedigest.com/why-late-payments-are-hurting-your-customer-as-well-as-your-business.html "Why late payments are hurting your customer, as well as your business") itself might owe a large sum to the same customer. Harmonising both departments using similar technologies can [create a more transparent strategy across the business](https://www.financedigest.com/how-to-create-a-pr-plan-and-link-it-to-your-business-marketing-strategy.html "How to create a PR plan and link it to your business marketing strategy") for the long term. **[Moving forward](https://www.financedigest.com/life-is-moving-forward-china-declares-new-covid-phase.html "‘Life is moving forward’: China declares new COVID phase"), learning the lessons of the past** Forward-thinking businesses have long been gradually moving towards digitisation in all areas, with automation now a crucial part of many [finance departments](https://www.financedigest.com/untapped-cost-savings-why-smart-building-management-systems-are-a-finance-department-priority.html "Untapped Cost Savings: Why Smart Building Management Systems are a Finance Department Priority"). The [next step](https://www.financedigest.com/open-finance-the-next-step-for-global-digital-transformation.html "Open finance – the next step for global digital transformation") is to put the focus on ensuring that the benefits of this technology are being enjoyed by all. In terms of talent retention and development, embracing the right specialist credit [management solution](https://www.financedigest.com/quality-and-compliance-management-solution-market-to-rise-at-a-high-cagr-of-9-4.html "Quality and Compliance Management Solution Market to rise at a high CAGR of 9.4%") will not only assist those finance professionals in the accounts receivable team in their typical working day, but also streamline costs for the business as a whole. By applying the lessons of previous recessions and [times of difficulty organisations will be in the best position to reach](https://www.financedigest.com/uk-and-eu-reach-post-brexit-customs-deal-for-n-ireland-the-times.html "UK and EU reach post-Brexit customs deal for N.Ireland-The Times") success in the current environment. Not only must we consider the crucial [role of the accounts receivable department in uncertain times](https://www.financedigest.com/now-is-the-time-for-finance-leaders-to-take-on-a-more-strategic-and-valuable-role.html "Now is the time for finance leaders to take on a more strategic and valuable role"), but it should also be prioritised in periods of stability. By doing so, the business will be one step closer to ensuring a sustainable and well-managed cash flow, enabling much-needed innovation and [investment in the technology to future proof their operations and ensure success for years](https://www.financedigest.com/halfway-through-2021-what-can-you-do-now-to-finish-the-2021-investment-year-strong.html "Halfway through 2021, what can you do now to finish the 2021 investment year strong?") to come. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---