Most companies struggle with outstanding A/R for many reasons:
- Maybe they don’t have a dedicated A/R employee
- lack standardized collection procedures
- fail to get invoices to customers quickly
- send incorrect invoices
- and many others.
Collecting outstanding accounts receivable is hard, but it doesn’t have to be when you have the right tools, information, processes, and people in place. Debt collection software helps companies pull those elements together to address the above issues and help you get paid faster. With the inclusion of debt collections software into your business strategy, you’re going to see some pretty amazing things happen, some of which include:
- Your collectors will spend less time preparing for calls and searching for information and more time actually talking with customers about payment. With debt collection software, all account information will be stored in one central place, available in one screen.
- You will be able to get invoices to your customers faster, allowing them plenty of time to process their payment within terms. Debt collections software allows you to automate the creation of invoices and attached PDF’s to emails.
- You will see an improvement in your ability to quickly manage disputes.
- Automate communications to customers so they know when they are approaching terms, when they have reached terms, and how far beyond terms they have gone without you having to move a finger.
- Your collectors will log in to the software every morning and a list will automatically appear telling them exactly what they need to do, when to do it, and why. This will help your collectors drastically improve their productivity because they no longer need to sort through their accounts and see what needs to be done. As they complete the actions on the list, it will update itself and keep your collectors on track.
- Eradicate invoice problems and mistakes with alerts from the system. for example, 49% of disputes may be related to missing or incorrect Purchase Order information on invoices according to an article on CFO.com but with debt collection software this won’t be an issue for you any longer- the system will notify you when an invoice for a customer is missing a purchase order number and you can fix it before it is sent to them
- Improved customer satisfaction and relationships. Your customers want to pay you on time and many times late payment is not their fault, it’s yours. Software will help you improve invoice accuracy, timely delivery, and it will make your company more pleasurable to do business with.
- You will be able to accept payments from customers online to further simplify and streamline the accounts receivable collections process.
- You will have improved Financial Transparency for better, faster decision making and forecasting.
- Reduced days sales outstanding. According to a study by PayStream Advisors, companies see a 10-20% reduction in DSO after implementing debt collection software
- Reduced past due receivables (on average 25%) and thus a drop in bad debt reserves drop by 15-25% (PayStream Advisors)
Debt collection software will truly change the way you work and finally allow you to tap into the potential waiting for you in your A/R. Collect your money faster with the features and benefits described above and turn invoices into the cash you need to grow your business. Start today.