As with the selection of any software system, choosing the right accounts receivable management software is paramount to its success. The goal of accounts receivable management software is to reduce disputes through the use of best practices, automate your collectors most time consuming activities, consolidate information, and work with your ERP and accounting system to help you get paid faster. But what makes a good solution? which features and functions should you look for in a system to help you reach those goals?
Here are a few of the most important features and functions to look for in accounts receivable management software to see a significant ROI:
- Integration with your accounting or ERP system is a must.
- The ability to program the system to alert you when an invoice is overdue by X number of days- something you should be able to define on your own terms and by customer.
- A clean dashboard upon login that provides a clear snapshot of what is going on with your accounts receivable.
- A system that allows you to automatically send dunning notices and statements on a customer by customer basis. This communication can then be automatically added to your contact communication record for the invoice (s) in question.
- A system that automatically tracks and stores all inbound and outbound email communications between you and your customers. tying them to that account, to the invoice in question.
- A system that helps you quickly prioritize your daily activities by automatically generating a “to do” list for each collector upon login, ensuring they get the most critical tasks taken care of first and do not waste any time prioritizing their activities.
- A system that automatically sends email reminders to customers with invoices attached so they know exactly what is owed, when it is/was due, and can never say that they did not get an invoice.
- All customer information is stored in one easy to read screen. The system should minimize the amount of navigation you must do within the system before, during, and after communications.
- This screen would include invoice information, details on multiple invoices for the same customer, sales order details, contact information, payment history, etc.
- A system that helps collectors better manage the entire process. For example, if the next step for a customer is a phone call, the system will schedule that call for the collector.
- The system has the ability to assign an account to a certain collector and assign tasks accordingly.
- A system that automatically tracks broken promises.
- The system allows you to take notes regarding the call and assign next contact dates
- A system that allows collectors to attach original PDF copies of invoices to communications as well as other supporting documents such as bills of lading, proof of delivery, employee timesheets, contracts, etc.
- A system that automates escalation of credit issues to managers.
- After payment for an invoice has been received, the system will automatically update calendars to remove any future actions a collector had for that accounts or invoice.
- A system that makes reports fast and easy with reporting options such as management reports, user reports, and views available to analyze financials, activities, accounts, and all aspects of your process so you can continually improve.
- A system that allows customers to pay their invoices online to make the process fast and easy for them.
- All automation is defined by credit class so you can create different workflow for various groups of customers.
- Account & Contact Management capabilities.
Of course system requirements and preferences will vary based on different business situations but, with the above functionality in your accounts receivable management software, your collectors will have all of time they need and information they require to quickly and effectively manage accounts receivable.