What Does an Efficient Rebate Process Look Like?
When it comes to rebates, what makes the process efficient?
A frictionless finance system is a brilliant idea. Can it be achieved or is it a pipe dream? A financial process that is often overlooked – managing rebates – is discussed in this article in the context of efficiency. In this article, you will discover what hinders efficient rebate management processes, why efficiency is important, and how you can achieve efficiency and achieve frictionless finance.
Processes that prevent efficiency
It is ideal for every step of the financial journey to run smoothly, from the moment a customer makes a purchase to when rebates are accurately paid. An inefficient process is one that is disconnected. Unfortunately, things aren’t always ideal in the real world. The flow of financial transactions through a business is rarely seamless. With large volumes of data, the financial process is prone to errors and inconsistencies due to the fact that it’s spread across spreadsheets, emails, and paperwork. We’ve said it before: “With large volumes of data, it is spread across an array of sources like spreadsheets, emails, and paperwork, which only increases the likelihood of errors.”
There are two factors that prevent efficient financial processes: Having the wrong set of skills within your finance team or having inefficient, disconnected, or (quite frankly) incorrect systems.
You must take a close look at the systems you’re using in order to address the first of these issues. Team members must also be able to do their jobs as efficiently as possible and make the most of their time. For many companies, rebate management is an afterthought, but it is possible to turn rebates into a strategic business tool. In order to be successful, you need the right tools for the job, and a spreadsheet is not one of them.
The finance processes can become more efficient by taking the following steps:
- A better understanding of productivity killers and how to address them
- Make sure your finance team is trained
- Streamline manual processes
- Be clear in your communication
- Ensure integration with other departments
- Eliminate redundant processes
- Make sure your finance team has the right tools.
In order to manage rebates efficiently, the sales or commercial teams must propose rebates to the rebate management team. Negotiations take place between the two parties, and an agreement is reached. It is possible for legal teams to review contracts until they are signed and then store them. Sales, marketing, or commercial teams should periodically check the progress of deals. The rebate agreements are then reviewed and paid according to the achieved targets.
By following an efficient rebate process, teams are able to work together efficiently, review contracts regularly, keep track of deals, and make or collect accurate payments on time. Partner collaboration becomes more effective, internal departments become more aligned, and new growth opportunities become easier to pursue.
Let IMA360 improve your processes to increase your revenue and optimize profits across your enterprise. Call today to schedule a demo.