With the recent hype over multiple use-cases for blockchain, it is difficult for executives to zero-in on a decision. But unless the core transaction management of your A/R processes is streamlined, blockchain will not solve your challenges and will fall short of delivering its promised potential. Before applying blockchain to your A/R processes, there are a few questions that you need to ask yourself.

Are basic manual tasks already automated?

All the manual A/R processes such as chasing transactions, fetching backup documents, preparing invoices, posting cash need to automated by using technology such as RPA and Artificial Intelligence. Technology would be able to mimic analyst activity and free up their bandwidth from doing low-value tasks resulting in speed, cost savings, and reduced errors.
“Blockchain is NOT automation. AR processes need to have ‘true’ automation in place for blockchain to show results”

Do our systems communicate with each other?

To optimize the end-to-end A/R process, efficient data exchange needs to take place between different A/R processes such as deductions, collections, credit, cash application for better transparency. Cloud automation helps to establish a single source of truth for seamless information exchange across processes. This concept is called Integrated Receivables where each process ‘communicates’ with other A/R processes instead of operating in silos.
“To realize the speed and transparency benefits of blockchain, your AR processes need to transform from siloed functioning to Integrated Receivables“

What is the ROI?

Before embarking on adopting blockchain for optimizing your A/R process, it is important to balance the benefits of blockchain with the cost of integrating this technology into existing systems such as validation workflows, accounting systems, and the cost to address cybersecurity. A winning business case should address what will be saved or increased from implementing the system.
“Having realistic numbers for before and after is necessary to understand what the system will do for you and from where your savings and optimization will come“