Track metrics that matter
Tracking your key metrics helps the team in two ways: it makes it really easy to see shortcomings and allows you to instantly figure out what can improve your processes. Regularly tracking your metrics allows you to see the trends in your AR real-time, and catch the sudden changes. It gives you a solid context to know the types of actions that will be required. It gives you the ability to do forecasting, and with accuracy. It saves a ton of headaches.
Track AR performance and the
impact of each customer
Each new customer and each new sale you make potentially exposes you to more credit risk. Tracking your entire portfolio every other day therefore becomes key to managing risk. A key metric you are tracking might be complex enough to not be obvious to the naked eye, and by the time you realize the trend, it may be too late. Knowing where your portfolio stands each day, knowing where each of your customers are in their payment terms makes it possible to prevent mishaps.
Identify problem accounts before
they happen by watching for
Once you know what to look for in a customer, it becomes possible to set rules and monitor your portfolio for red flags. From changes in payment patterns to unanswered calls or bounced emails, there are hundreds of data points that can tell you whether your credit risk with a specific customer is going up. Being able to systematically listen for these types of alerts makes it possible for your team to quickly get better at managing risk.