Accounts Receivable

Find out how Jumio is able to signficantly reduce its DSO as well as eliminate all the manual work required to manage collections.

Download our checklist to learn 7 essential features any AR automation solution should have including Automated collection workflow, cash predictability and more.

93% of CFOs have a vision for a finance function that is leaner, more digital and driven by data.* The impact of the pandemic on finance teams has been well documented, from challenges forecasting cash collections to customers delaying payments. That is why in the post-pandemic recovery, digital technologies will help accounts receivable teams become more strategic, increase efficiency and improve cash flow maximisation.

Next-generation digital operations platforms will play an important role in delivering quality customer experiences, according to Forrester. One specific operation within organisations that can benefit from this is the process of dealing with invoices each month. Through implementing an effective accounts receivable (AR) platform, managing the lifecycle of these invoices becomes easier and you can personalise to specific customer profiles.

Days sales outstanding, or DSO, is the average number of days it takes a company to collect payment after a sale has been made. It is also a metric for AR, or accounts receivables. DSO is typically reported and evaluated on a monthly, quarterly, and annual basis. It’s important to understand DSO norms over a 12-month period because your numbers may vary month to month due to natural business cycles or seasonality of your business.

How different is your business today, compared to 12 months ago? For many of you, it’s likely very different. Customers are not coming into your place of business nearly as often, if at all. Collecting cash has become more challenging. The need for new ways to transact is driving change. Your ability to respond to changing market conditions and events, and then communicate those changes, is critical to survive. Some of you have up-ended your entire business model to meet new market demands, while others are optimising existing processes.

Jumio is an online mobile payments and identity verification company that provides card and ID scanning validation products for mobile and web transactions. Jumio’s expanding collections portfolio was difficult for their lean Accounts Receivables team to manage. 20% of the team’s time was spent manually contacting customers and the organization recognized the need for an automated solution. The challenge was finding a solution that would integrate seamlessly with their existing ERP and tech stack to drive immediate benefits and ensure business continuity.