If you have clean and up-to-date master data for customer and vendor contacts, you can leverage the power of digital communications to maximize productivity in your accounting department with paperless transactions and office automation.
Obtaining and maintaining correct and current master data for customers and vendors should be an ongoing process. You should employ effective profile management techniques with the goal of establishing and maintaining communications with your AR and AP counterparts at vendors and customers, respectively.
If you have hundreds or thousands of customers and vendors, you need to establish a process for detecting issues in your master data, and how to handle them. Trying to obtain and manage profile data on a manual basis under these circumstances would not be practical. It would divert your team’s time from high priority objectives including collections and cash flow.
How to Detect and Handle Data Management Issues
The best way to detect an issue with email addresses at customers and vendors is to run a combination of Taxpayer Identification Number (TIN) and email address against your master data to flag exceptions for follow up and resolution. It is better to be proactive and continuously search for issues than find out about them after they have created a problem.
What Exceptions Will Tell You
- If the TINs match, but the email addresses don’t match it’s either an error or multiple AR or AP departments in a larger entity.
- If the TINs do not match, but the email addresses do match, it’s either an error or shared service across multiple taxpaying entities.
- If the TINs and the emails match, then you’ve found a duplicate.
- If the email address is a personal email address, it means the other party is not using a best practice. It is always best to have department email addresses at your customers and vendors such as AR@XYZco.com and AP@ABCco.com. You can always have personal email addresses for your contacts in addition to department email addresses.
In each of these cases, you can contact the other party and resolve the issue to avoid problems in the future.
Detecting data management issues in the accounting department is essential to increasing productivity by avoiding errors, disputes, unauthorized deductions and chargebacks. With automated credit and collection solutions it is possible to optimize automation, and increase cash flow.
Lockstep Collect, a leader in cloud-based credit and collection platforms, can help you collect cash in 4 ways:
- Cloud-based solutions
- Automated customer communications
- Customer self-service
- Collections Activity Management
Lockstep Collect is an experienced software partner that can help you maximize your collections and cash flow in the new normal.
If you would like to learn more about how you can benefit from automated credit and collection solutions, please contact Lockstep Collect at www.anytimecollect.com.