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A/R University

5 Tips to Improving Collections

A powerful, cost-effective collection process involves leveraging smart tools that give Account Receivable teams control of their workload and meet customers where they are.

Know the Benefits:

Consider which features of a payment solution will help you achieve faster collections.

  • How can pain points and payment friction be removed?
  • By accepting various payment methods, is there a measurable difference in on-time payments?
  • Do options save your team time and eliminate the bulk of collection calls?
  • Do they give your company a competitive advantage?

to help upgrade the Accounts Receivable payment process and accelerate collections

  • 1 Develop a Strategy

If your Accounts Receivable team has invested valuable time in payment processes that are manual, consider bringing in automation to ease burden and stabilize collections.

  • Identify what has been beneficial to your business in the past and how digitization can provide your business with new opportunities.
  • What existing payment options do you already have in place?
  • Do these options make sense in the current situation, or is there room for adjustments that help accommodate an evolving environment?
  • For each payment method and processing option, what tools and resources are you using? Defining your strategy can help you establish an effective payment experience.
  • 2 Weighing Cost versus Benefit

Specific customer circumstances adhere to specific payment channels, however different payment channels come with added costs. Checks, credit or debit cards, and ACH transactions come with varying fees. It is important to be aware of what these costs are and where they come from. See our white paper “Decoding Costs of Payment Channels” which identifies expenses in each channel and highlights some key points to consider.

  • 3 Customize Your Payment Acceptance

Utilize payment acceptance strategically by controlling when to accept payment methods. For instance, consider turning on credit card options. Credit card acceptance control allows you to authorize related costs that come with card transactions, and allows you to toggle options on or off based on customer or circumstance. Establishing flexible payment methods is key to vendors and customers during this time. It can help provide positive cash flow, mitigate bad debt risk, and build customer goodwill that may result in increased future revenue.

  • 4 Embrace Good Automation

Modernize payments and lower related costs while increasing customer security. This process of evaluating your payment tools is step one to reducing slow or lost payments and boosting your Accounts Receivable metrics and percent current.

  • Automated collection campaigns: Instead of waiting for accounts to turn delinquent, proactively collect from individuals or groups of customers on plans that send out multiple payments at once.
  • Automated reminders and notices: Reminders and notices help customers keep track of their due dates and give them time to prepare to make payments. Vendors can set these to be automatically sent out, making the process easier and ensuring the customer is on track for payment.
  • Auto Payments and Payment Plans: Powerful features that can streamline your Accounts Receivable processes, help customers avoid late payments, and can free up time for teams.
  • 5 Utilize Mobile Payment Acceptance

Mobile payment options make it easier for customers to pay, enabling invoice response from wherever, whenever — without requiring customers to be in front of their desktop. Mobile payments provides a contactless payment method that processes and transfers funds to a business account faster. Further, when customers are offered the mobility to make paying their invoices completely painless, customer relations and company advocacy are enhanced. When customer service improves, sales go up, and cash flow increases.

Investing in Automated Accounts Receivables is key to your A/R management strategy. Tools can help professionals approach collections confident in faster payments and positive cash flow.

Billfire’s Valet Payments is the ideal accounts receivable automation solution.