Any credit collection professional will tell you that collecting and managing invoices is time consuming and any manager will also tell you that the time collectors spend doing clerical tasks associated with invoice management is the largest killer of productivity. Of course, this is not the collector’s fault, those clerical tasks must be done in order for them to do their jobs, but there is a better way. By implementing debt collection software, collectors can put such time consuming tasks on auto pilot and focus on more critical activities that directly impact the company’s bottom line.
One of the most significant changes you will see after implementing debt collection software is the way your collections employees spend their time. Without debt collection software, collectors spend a majority of their time putting together and reviewing aging reports to identify past due accounts, prioritizing contacts, putting together their to-do lists for the day, researching documents necessary to calls, updating information, and many other clerical duties.These activities, when done manually, are hugely inefficient and eat away at productivity levels. Each and every one of those activities, while they are necessary, are taking collectors away from the real issues at hand- communicating with customers to collect money owed.
Automation with debt collection software eliminates a number of those tasks and speeds up others, minimizing the time spent on clerical duties and maximizing time spent on phone calls and follow-up activities. Many companies see productivity levels of their employees double, if not triple, after implementing debt collection software because centralized data allows collectors to quickly reference information making them more responsive to customers, while powerful automation takes care of the day to day activities and streamlining the process.
Don’t take our word for it though, a study done by The American Collectors Association illustrates the difference between managing accounts receivable manually, and utilizing automated debt collection software:
• Average number of calls per collector each hour
o Manual: 13.5
o Automated: 17.5
• The average number of active accounts handled per collector:
o Manual: 780
o Automated: 1,713
• Average number of payment promised per hour:
o Manual: 6.4
o Automated: 10.5
• Average number of debtor contacts per collector each hour:
o Manual: 6
o Automated: 8.5
By moving from a manual collections strategy to an automated collections system, your collectors can increase their productivity levels significantly and spend more time talking with customers, a proven way to increase cash flow, decrease DSO, and help you quickly turn invoices into cash.