Improve visibility into cash flow and reduce DSO with the OnBase Solution for Accounts Receivable
“We knew we needed something. We had an enormous volume of documents moving through customer service, AP, AR and quality. If there was ever an issue, it could take a week to find the paper that had the answer. We wanted our staff to be able to spend their time on valuable activities, like reporting and analysis…not searching for documents.”
That’s from Jim Derrick, IS manager, Central Services-Applications, at Bush Brothers and Company. Even though the accounts receivable department was mostly EDI-driven, paper was still slowing down processes and clouding visibility into cash flow management. If you’re still relying on paper for accounts receivable management, chances are this sounds pretty familiar.
Finding and routing paper documents takes too much time. Even harder is trying to see what’s come in, what’s waiting to come in, and what’s running behind. Without this vital information, organizations can’t make smart financial decisions. With OnBase, AR can see exactly what’s coming in and going out in real-time, making cash flow management more exact – not best guesses based on historical data.
At Bush Brothers’, AR now imports or scans receivables documents into OnBase. Staff finds them quickly and the time saved in looking for documents is now put to use in valuable tasks like analysis, reporting and auditing. “The first big bang for the buck was in customer service and AR,” Derrick affirms. Trends were spotted earlier, write-offs decreased and DSO dropped by two days, or 10 percent. This efficiency saved $200,000.
Handle influxes of transactions without adding staff
Not only does AR need more transparency into processes, it also needs to be able to handle the sheer volume of transactions running through it. One thing that makes this difficult is that the documents surrounding a transaction are often separate from the data. Even if a great ERP or accounting system is helping with accounts receivable management, it can’t handle data and documents together.
By integrating your ERP with OnBase, you can unite your data and documents. AR staff can stay in their familiar ERP applications and just use a mouse-click or keystroke to find the documents related to that specific transaction or account.
At Bush, this kind of fast access to documents from its ERP meant that AR is handling a 15 percent increase in volume. Even with the increase, they haven’t had to fill two vacated full-time positions.
“Without OnBase, we would have to double our staff to do all we do today,” says Derrick.
Conduct an audit without touching a file cabinet
Finding a set of documents for an auditor can take an organization days. Not so when all your documents are in OnBase. Pulling up the needed documents just takes a matter of minutes. Even better, you or your IT department can set up a quick username for them, with restricted access just to appropriate documents, and let auditors find the documents themselves.
Like Bush Brothers, your accounts receivable department can eliminate the paper that blocks visibility and slows down processes. Instead, your organization makes smarter financial decisions and keeps up with volume.