Financial Systems

HighRadius System Implementation

I recently had the opportunity to assist a manufacturing client with HighRadius system implementation, an integrated platform that optimizes cash flow through automation of receivables and payments processes across credit, collections, cash application, deductions, electronic billing, and payments. The client chose four modules to implement: Cash Application, Claims Processing, Deductions Management System, and Collections System.

HighRadius has a proven track record of optimizing cash flow, reducing days sales outstanding (DSO) and bad debt, and increasing operational efficiency so that companies can achieve strong return on investment (ROI) in just a few months. 

Key Benefits Realized by the Client’s HighRadius System Implementation:

  • The Cash Application module provided 95% zero-touch cash posting for checks, ACH, and credit cards with 100% elimination of lockbox key-in fees using artificial intelligence-enabled data capture; automatic remittance and payment data aggregation; invoice matching; dispute management; and exception handling. 
  • The Claims Processing module saved time by automating download and aggregation of back-up documents, increasing efficiency by up to 70%. The module can also automatically collect, index, and manage claims from paper submissions, emails, EDIs, or customer websites/portals. It traverses through carrier websites to retrieve other back-up documents such as PODs (Proof of Delivery) and BOLs (Bills of Lading), matching and collating the documents and keeping all the required information in the cloud in a searchable document repository. All of this makes it easy to manage, retrieve, and integrate information into collections and deductions management workflows.  The client was able to realize the nearly complete elimination of any manual work involved and research-ready deductions available to analysts for further validation. 
  • The Deductions Management System module accomplished the following upon implementation:
    • Reduced DDO (Deduction Days Outstanding) by 50%
    • Fast-tracked dispute resolution
    • Automated the download of claims and PODs
    • Recovered 40% of capital previously lost as bad debt
    • Automatically backed-up document aggregation
    • Assisted in the resolution of trade disputes
    • Provided a structured collaborative workflow for research and approval with a prioritized worklist
    • Generated automatic customer correspondence
    • Provided a centralized repository for history and notes with the ability to track performance and improvements
  • The Collections System module reduced past-due accounts receivable by 75% and improved collector productivity by 30% utilizing automated account prioritization and dunning, sending timely proactive reminders to all customers. 

Before HighRadius System Implementation…

1. Identify your biggest pain points/critical issues.

These may include:

  • Excess undisputed deductions
  • Unapplied cash not being applied in a timely manner
  • High AR aging
  • Challenges searching and providing back-up. 

Locating the areas of AR that need to be improved will inform module selection.

2. Consider the usage volume of customer portals.

The higher the number of customer portals, the higher the price of the product. If a portal is only used a few times a month, the cost does not outweigh the time and money benefits of automating the portal process.

3. Prepare in advance for data migration.

The more prepared you are, the faster the implementation process. Before implementation begins:

  • Gather logins for portals and systems (customer portals, shipping portals, etc.)
  • Set up a separate remittance-receiving email and gather samples of various documents, including claims, remittances, PODs, checks, and written portal navigation procedures.
  • Coordinate with your bank for automation of lockbox checks and remittances and speak to them regarding their compatibility with HighRadius and their support processes and procedures.  
  • Contact HighRadius to gain an understanding of the pre-implementation tasks that need to be performed based upon the modules and systems you are implementing.

4. Finally, be prepared for the project timeline to extend beyond initial projections.

Issues will arise, delaying the process. Stay focused and on top of action items that could present bottlenecks. Note that some HighRadius support staff is based overseas, requiring advanced scheduling of meetings. In fact, you may be limited to morning meetings in order to accommodate everyone’s work schedule. Not taking this into account can lead to a delay in the implementation timeline.

Once HighRadius system implementation is complete, you will see smoother, faster, and more accurate results produced by your AR team and a great ROI.

For More on System Implementations

For further insight into whether a financial system makes sense for your business, download our Budget and Forecasting Automation and System Selection Checklist:

financial system selection checklist

You can also visit our financial systems page to learn more about how we work with clients on implementation, post-implementation and optimization of systems.

About the Author

Erika has over 12 years of experience in accounting and finance in a diverse set of industries such as Retail, Entertainment, Commercial Real Estate, Manufacturing, and Public Relations. Prior to joining 8020 Consulting, Erika served as Accounting Manager for the retail company Delta Galil Premium Brands who owns the apparel brands 7 for all mankind and Splendid and previously worked for 20th Century Fox as an Accounting Manager. Her specialties include Financial Reporting, Month End Close, General Ledger, Budgeting, Cash Forecasting, and Data Analytics. Erika is currently in the Executive MBA program at Loyola Marymount University and she will be graduating in May of 2019. She received her BS in Business Administration with an emphasis in Accounting from the University of Colorado at Boulder.

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