1. Streamlining accounts receivable processes
1. Establishing too many accounts receivable processes to be able to manage them efficiently
Processes are fundamental to the management of accounts receivable of any technology multinationals. They help maintain congruence and consistency of approach to collecting outstanding invoices in different local operations. However, most technology companies are on a slippery slope once they start devising processes on an ad hoc basis to facilitate their global expansion. As the number of processes of accounts receivable grows, it becomes increasingly difficult to discern which procedures add real value and which procedures are for the sake of observing formalities. Lack of oversight of global accounts receivable is not the only consequence. Even when a company wants to streamline their accounts receivable processes, they are often too overloaded to have an idea where they should start.
It is always a good first step for a multinational technology corporation to catalogue as many of their current accounts receivable processes as possible. Then they can categorise those into four main groups and prioritise accordingly. 1. Indispensable and add value globally 2. Not all-important and add value globally 3. Important and add value locally 4. Optional with limited value
Global technology companies should assign a high priority to the simplification and standardisation of the first two groups of accounts receivable processes, maintain and localise the third group if resources are available, and put an end to processes under the fourth group. When the number of accounts receivable processes becomes more manageable, global technology corporations can enhance them further by addressing the following questions. • What do the current accounts receivable processes deliver? • What could the current accounts receivable processes deliver? • Is there a difference in the answers to the two questions above? If yes, why is that? Getting to the root of any inefficiencies will help the companies cut down the time spent on completing processes while getting the most value out of them. The acts of regulating and optimising accounts receivable processes are, to a certain extent, work in progress themselves. Technology multinationals have to carry them out frequently to prevent the proliferation of nugatory processes. Only then can their global accounts receivable processes work to their best advantage.