Accounts Receivables AnalyticsPrepackaged, readily-deployable KPI Visualizations
Have you exhausted all possibilities to enhance your working capital and revenue position through Accounts Receivables (AR)?
Often, organizations have an enterprise-class system in place that delivers standard aging reports, but their executives and CFOs still lack the visibility they need to make proactive decisions. Analysts find it challenging to drill down into reports to identify root causes and bottlenecks.
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Looking to implement a robust AR analytics but don’t know where to start?
Our experts can help you put together a robust 360-degree Receivables Analytics solution with prebuilt views and interactive visualizations that could easily deliver answers to questions such as the following:
- How has each Accounts Receivables bucket fared over time?
- What do the shifts in the performance of buckets signify? (It may look like receivables are getting better with increased proportion of payments being received earlier in the cycle, but that could be caused by the loss of a customer who is consistently late in payments. Excluding this customer, performance may have actually deteriorated)
- Which specific currencies, geographies, invoicing unit, offerings, sales reps or customers need to be managed better or monitored closely? How has their historical performance been?
- For each customer or region, what % of invoices (in count and currency) has been paid on time?
- How are the receivables faring after accounting for intra group transactions?
- What is our receivables position and their composition by age (bucket analysis)?
- Who are our top clients in terms of outstanding receivables?
- What is our risk exposure, especially for receivables beyond a threshold?
- Are the disputes being managed and resolved optimally?
- Are there receivables that we may have to write-off or transition to collections in the future?
Cash Flow Management
- What cash flows are due from future receivables? What proportion of future receivables is expected to be realized?
- Cash Realization: What is our Cash-to-Cash Cycle Time, planned and actual?
- What specific combination of actions do we need to take to meet our target for Days Sales Outstanding (DSO)? What is the likelihood of these efforts bearing results?
Credit Risk Management
- What is the risk profile by customer?
- Which customers are at risk of breaching the credit limit thresholds?
- Can my system provide actionable intelligence for advanced warning & management?
- Which customers’ risk profile has changed for worse recently? If so, what action should be taken?
- Are we actively monitoring and upgrading risk profiles to keep them current?
Forecasting & Predictive Analysis
- Can the system leverage predictive analytics capabilities to assess payments at risk?
- What is the likelihood of recovery on our long-overdue accounts receivables?
- What would be the implications of changes to policy and process? For example, would offering Early Payment Discounts to specific customers or geographies deliver value to company?
1. Receivables Summary
A summary view from an AR Executive Dashboard for a multi-national, multi-currency, multi-entity organization. The table on the top shows AR by company or legal entity as on a particular date. The table at the bottom shows receivables by currency
2. Cash Flow View
The user could select the ‘Cash Flow’ toggle button on the top right to view futuristic cash flows
3. AR & Top 10 Customers
Selecting the ‘View Chart’ option in the previous screen toggles to a visual representation of receivables by currency and by legal entity. Top ‘n’ customers analysis is also shown at the bottom.
4. Receivables by Customer
This view helps executives drill to receivable status for specific customer(s). Users can filter on criteria (Date, Intergroup/Intragroup, Invoicing Unit, Country and Sales Rep), or can directly use the context search functionality provided above the table
5. Bucket Analysis over Time
Dates up to four time periods and can be customized. This shows how a specific bucket for receivables or cash flow has evolved over time.
6. Bucket Analysis over Time (#2)
You can switch to a different visualization using the toggle button. Note that filtering options (such as invoicing unit) can be made available across as many views as possible, with the ability to pass context information across views.
7. Credit Risk Management
This view from another AR dashboard focuses on Credit Alerts by customer, Risk Profile (High, Low, Medium), Credit Available and Sales Rep responsible. Payments at higher risk of default are also shown on the table at the bottom.
8. AR, DSO & Cash Realization
This view is again from a different dashboard, offering an alternate take on the Summary stats an executive would like to see. This provides a simplified summary of all metrics including trend on sales, collections, DSO and KPIs such as % of invoices paid on time (nos. and amount) and Cash Realization Cycle Time (contract and actual)
9. AR for a Geography
A summary view similar to the above, except that views show KPIs by location rather than by Invoicing Unit. Having such multiple views helps the users to select different perspectives with the least amount of clicks
10. Receivables by Entity
A variation in the summary view that helps the user drill down to specific Key Performance Indicators by Customer. It shows details such as trend for receivables bucket, sales, balances and DSO, and Payment Performance measured through % of invoices paid on time and Cash-to-Cash Cycle Time.
11. Company Summary
This view is another take on Accounts Receivables summary at the company level, but it differs from the previously listed summary views in that it displays outstanding Accounts Receivables by Sales Reps, and by Industry (useful for companies operating across multiple industries)
12. AR by Customer
For those used to viewing tabular data, a classical aging analysis grouped by Country and Customer is shown here. Note that this view offers the facility to export data into Excel or CSV for offline analysis
13. AR by Geography
Another simplified take on the geographic view, that shows breakdown for a specific Business Area, Country, and a region within the Country. In this view, KPIs are shown for AR aging category and industry of focus
14. AR by Sales Rep
A view that facilitates side-by-side comparison of Receivables Performance by Customer or by Sales Rep. Interestingly, performance for multiple customers handled by one sales rep, or several individual sales rep managing one customer can be viewed side by side to identify problem areas.