We saw what feasible buckets can be created for an “Ageing Analysis”
Let me discuss with you some key challenges of an ageing analysis. This happens a lot with mid-sized clients.
- The client’s ERP systems are not configured to reflect the invoice due date.
- The effect of this is that the client will create this analysis from the date of the invoice and trigger follow ups accordingly
- There will be customer dissatisfaction, since he will expect to pay by the agreed due date only to manage his cash flow and for other business reasons.
- This will lead to issues and the requirement for settlements, more so, building manual sheets for the data.
- The sales folks normally end up working on this, and your client’s sales force starts spending the precious time, which they could have used to generate additional business.
- Changes to the due date are not updated.
- Non-update of changes to the contract can lead to similar situations and be an embarrassment to your client
- Level 2 analysis not resorted to (understanding the analysis beyond the outstanding days budget)
- Just bucket analysis may sometimes be misleading as within a bucket, there could be one odd customer creating the major default, and the team may end up following the insignificant ones
- In case of one client, we found that the team actually followed up on the lower value clients to save their efforts.
You may subscribe to the blog from the subscription box on the opening page of the blog. We have enabled a button on the top of the first page, which will enable you share your posts. If you wish to write about any of the current streams, you can do it at https://faoblog.com/guest-post/. We will review your post and release it within 48 hours of your posting.