Selecting a Deduction Management System
March 5, 2019
Selecting cloud deduction management software starts with auto cash application software and extends to the deduction resolution and reconciliation process. Start with a set of basic specifications based on your own operational needs. As you review various systems, you will develop a list of must-haves, nice-to-haves, and not-that-important features.
Implementing a cloud SaaS system can be easy if you choose the right software vendor. It does not require software or hardware installation, and often little to no programming, and will use APIs or other data linkages to your various systems. With SaaS receivables automation, all inside departments, outside salespeople, and even customers can easily access the same information to participate in problem-solving and deduction recovery.
Your deduction management system should start with automated coding at cash application since the resolution workflow for disputes and deductions begins at that point.
Costs? The pricing for cloud A/R automation generally includes a corporate license/subscription based on company size, number of users, and the modules selected ( i.e., total A/R, or just Collections, Deductions, Cash Application, etc.). In addition, there will be an upfront customization fee to cover implementation costs and an annual support charge.
Your objective is to streamline your processes, reduce write-offs and improve the recovery rate from deductions since all that goes right to the bottom line. Your challenge is to find a combination of powerful capability and operational simplicity in one system — Carixa™ is the answer, designed by accounts receivable pros.
Lastly, with an automated system driven by management-directed workflows and escalations, along with the qualitative improvement in results, you will see a significant reduction in the labor required for this function. As a result, you will be able to do more with fewer people.
Don’t be put off by the initial investment. When you compare it to the fully-loaded costs of the administrative expense saved and the extra profits derived from higher deduction recoveries, the ROI could be 100% even in first in the second year
Contact us today for more information!