Why should you care what “AR” stands for?
When meeting other business owners, I often get asked what does the “AR” stand for in our business name: smartAR. And more importantly, why should you even care?
Is the AR for:
Augmented Reality? Artificial Retinas? Additional Revenue?
Or my favourite – Adaptive Randomisation. You know, as in Sequential Multiple Assignment Randomised Trial – with Adaptive Randomisation. Look it up, it’s a real thing!
Fortunately, we are nothing so esoteric.
No – AR stands for Accounts Receivable.
We are smart accounts receivable specialists. Our daily work is based in that sometimes-awkward space existing between a Biller and Payer, when credit has been provided. The Biller expects to be paid by a certain date. If not paid on time, the other party (Payer) needs to be categorized into those that:
- Can Pay
- Can’t Pay, or
- Won’t Pay
With each being treated slightly differently.
We are super excited by what we do. Most people, however, find accounts receivable (AR) about as exciting as cleaning the gutters, or weeding the garden. It’s necessary maintenance.
Keeping your accounts receivable clean and tidy will mean you minimise bad debts and write off’s.
When a large business struggles (or goes bust) through poor cash flow and bad accounts receivable practices, it can send a profound ripple through the economy.
If credit is tight and too many businesses fail, a recession (or depression) is on the cards. No failures and too much credit being available is just as bad – fuelling inflation and ballooning asset prices. Invariably followed by a downturn and correction.
The smartAR team work with AR professionals in firms like yours, to help you get paid what you are owed on time. Paid – in an efficient and low cost manner with no hassles from “slow payers”. We are not debt collectors – that only happens if we fail, and we very rarely do.
We think AR is an honourable and important profession.
What do you think?