Summary

The financial state of a company of any size or industry depends on the health of the company?s account receivables and DSO is a key metric to evaluate the strategic state of receivables. While credit and accounts receivable departments are trying to keep more than 90% of their receivables current (within payment terms), the reality is that more than 38% of invoices are not paid on time which impacts DSO. Therefore, the collections process plays a very important role in improving DSO. The collections process has progressed over the decades on five critical components- People, Process, Data, Collaboration, and Technology. With over more than 500 successful credit and A/R transformation projects, four levels of maturity have been identified with which various organizations operate and evaluate their collections efforts. Identifying the current level of maturity is an important first step in the transformation process since it ensures that the efforts of the collections team are focused on improving the right areas of the company?s collections process. The following summarizes the 5 key success factors†with respect to each maturity level of the collections process:

HighRadius Integrated Collections Solution: A Proactive Collections Process

Technology is the future of the collections process where all the data, analysis, strategies, correspondence and information are only a click away. HighRadius Collections Cloud solution provides a complete set of tools to optimize and automate the collections management process. All the information you need like invoices, dispute information, PODs, claims, tracking info, etc. on each case is automatically presented in a collections work-space and ready for use with a single click. HighRadius Rivana leverages regression using Decision Trees, to predict the most likely payment date for every invoice. Based on the prediction, the solution can send automatic emails to customers asking for payment on or before the predicted date for the non-critical customers and provide suggested actions to analysts for the ?at-risk? customers. HighRadius RadiusOne^TM Network can auto-collect promise to pays and payment information which helps the analysts staying up-to-date with the account status for proactive collections management. Key Features Include:

• Rules-based Collections Optimization automatically prioritizes and assigns collections activities to analysts based on predefined business rules
• Integrated Collections Work-space tracks promises-to-pay and tasks and reminders for every account and collection effort
• Predictive Risk Scoring Model identifies ?at-risk? customers who might be current on their account and integrates the risk level into prioritization.
• Dunning Correspondence Automation generates and sends out correspondence packages containing needed documentation based on predefined templates
• Easy integration with ERP, Accounting, and other systems

The following shows a collections worklist for a proactive collections automation: