Across many organizations, accounts receivable is a large asset and great way to bring in money if it is done correctly, but a new infographic from e2b Anytime Collect showed not every business has their department where it should be. With accounts receivable software available, companies should look to make this as productive and efficient as possible to not lose out on any incoming cash flow.
As overdue invoices become older, the infographic showed that it becomes much harder to collect from them. At three months, 26 percent of invoices are uncollectible. This balloons to 70 percent after six months and 90 percent after a year, meaning the longer these are unpaid, the less likely it will be that they are ever resolved. The average number of days written into payment terms is 28. For outstanding sales, the average grows to 61 days and increases the odds that businesses will not be able to collect on this money.
Other numbers from this infographic show:
- 52 percent of businesses have been asked by customers or clients for extended payment terms, which may be hard to manage with an unorganized system in place
- 39 percent of invoices are paid late, which hurts a company’s bottom line
- 48 percent of customers have delayed their payments
Check out the Infographic: Accounts Receivable Crisis- Click Here
Many benefits of Anytime Collect
Companies can have this in order by adopting Anytime Collect, which is now available as a cloud offering or purchased for a monthly subscription cost via the cloud. This program automates receivable and general debt collections, and helps management have a more simple process in place than they otherwise would to help collect more quickly on some of these invoices. With something like this in place, companies will not have to worry about some of the struggles that can come with overdue payments.
With this software, businesses should see fewer write-offs in the department. The e2b infographic reported that on average, organizations end up writing off 4 percent of their accounts receivable, which can be as much as $400,000 for a company worth $10 million. Even if businesses were to just see a 10 percent savings from adopting automation software, that would mean a savings of $40,000 every year.
With the latest version of Anytime Collect,
companies can keep gain insight into customer payments and track numbers like this, including who their worst offenders are, what broken promises are in place from customers and where things may have gone wrong.
“With the expanded adoption of our Anytime Collect product, our development team has leveraged customer feedback and real world scenarios to make our customers’ collections activities easier,” said Lynne Henslee, President of e2b teknologies. “The new features benefit not only our existing customers but it expands our opportunities for new license sales – especially for smaller companies with limited credit and collections staff who need this type of automation to reduce the order to cash payment cycle for their lean businesses.”