A large percentage of customers truly do want to pay you on time, but somewhere along the line, the ball was dropped and payment was not received by the agreed upon day. This could have been your customers fault, but it just as easily could have been yours. Communication is usually the culprit.
If you are not getting invoices to your customers quickly and remaining in contact with them consistently, it is very easy for them to either forget to pay, or your poor communication gives them an excuse to hold payment longer. But tracking and managing communications and other activies is extremely time consuming, how can you change your processes to improve your accounts receivable collection and get paid faster?
Accounts receivable collection automation has proven itself to be extremely helpful in making sure you are handling your AR strategically and communicating with your customers consistently, allowing you to collect more cash and increase customer satisfaction along the way.
The activities related to customer communications and prioritizing your accounts is time consuming and always changing. An accounts receivable management system can help you cut back on the time you spend manually tracking that information and increase the time you spend on more important activities directly related to the profit of your company. According to industry analysts PayStream Advisors, companies that deploy accounts receivable collection automation technologies often realize the following:
- 10 to 20 percent reduction in Days Sales Outstanding (DSO)
- 25 percent reduction in past due receivables
- 15 to 25 percent reduction in bad debt reserves
- Increased cash availability
- Increased productivity and ability to hold down staffing costs
The key is finding the right solution. Look for a system that is easy to use and helps to get you through your AR management activites as quickly and efficiently as possible.