When it comes to AR management, invoices are typically issued with agreed upon terms and a payment deadline of Net 30 days or similar. But business owners and financial professionals know that these terms and deadlines don’t always ensure consistent repayment habits. With Chata, you can easily keep a pulse on your AR metrics on an ongoing basis. This can give you a better understanding of customer behavior. It can also help you to more accurately anticipate your future cash flow.
Using a Dashboard, create a tile that displays the answer to “Average days to pay”. Then create tiles that display the answers to “Average days to pay on invoices over $1000” and “Average days to pay on invoices over $5000”. Substitute invoice values that are meaningful to your business. Create tiles for any other invoice values that you are curious about.
For a more detailed view, from “Average days to pay per customer”. Add in tiles with questions like “Average days to pay by customer on invoices above $5000” (or the invoice amounts your customers take the longest to pay) to get a more comprehensive idea of individual customer behavior on those high cost invoices.
You can add in visualizations for “Total AR by customer by month last 6 months” and/or “Total AR by customer” next to tiles filled with the information you get when you ask “Total AR balance,” “AR this month,” and “Overdue AR”. Want to track your upcoming AR? Just ask for “Total unpaid invoices due by week for the next 12 weeks.”
Want to add an extra layer of insight? Ask “Cash flow forecast by month next six months” and see your probable cash futures alongside your current AR.
When you’re finished, you’ll have a rolling overview of your current AR state side-by-side with a cash flow forecast. This allows you to keep up with customers, implement payment plans, and make strategic decisions about your business.
Check out more ways you can use Chata’s features to help you turn business data into the powerful insights that put you on the road to success.