4. Creating duplication of effort with each level having the same accounts receivable functions with the same responsibilities
Creating duplication of effort with each level having the same accounts receivable functions with the same responsibilities
As a technology company grows and collects outstanding receivables worldwide, they usually build up their accounts receivable function at a regional or country level with a structure similar to that of the headquarters. With rapid global expansion, duplication of roles is bound to occur frequently. The absence of coordination between the various layers of a multinational technology company could result in accounts receivable tasks being repeated by all layers and errors being acknowledged by none.
Technology multinationals can first identify the major jobs to be done for accounts receivable, then determine which level is most suitable to handle them. Ensuring accountability for each principal task at each level will prevent duplication of work. The more disciplined a global technology company is with eliminating wasteful duplication, the more value their accounts receivable function could add to their bottom line.