Automating credit rules will save time that can be spent contacting customers, and improve AR credit quality.
Credit quality has a direct impact on collections. Higher quality accounts receivable are easier to collect, so your team can focus more time on priority collections.
Credit rules you should be automating include:
Credit scoring is time consuming if done manually. Manual credit scoring requires amassing information from various sources, transcribing the information to a spreadsheet, calculation and review of the score.
Gathering data can require a lot of effort depending on the sources, and the make-up of your credit score calculation. Sources that need to be called can be burn up a lot of time.
Credit scoring can be customized to meet your needs and automated to save time and provide a timely snapshot of a customer’s credit quality. Direct feeds and automated calculations save time to be spent touching customers.
Reminder for Credit Review
Credit reviews need to be updated on a regular basis, or as needed (refinancing), to be a useful tool for judging credit quality. If you have many customers, manually tracking when a credit review is due can be a time consuming and needless task. With automated reminders your AR team can simply program a date (anniversary date), to be reminded when a credit review should be updated.
Changes in Credit Score
You may not be aware that a change in credit score has occurred if a customer has not placed an order recently. A change could indicate a credit review update is warranted and/or a change in collection effort is required. Automated alerts can help to avoid unpleasant surprises.
Don’t find out about problems after it is too late. Be alerted to them early, so you have time to take action. Automated alerts to changes in credit score can give you the forewarning needed to be proactive, not reactive.
Automating credit rules save time, and help to improve credit quality. Automation rules are essential to an efficient credit and collections process. Automated credit and collections solutions increase productivity and accelerate cash flow.
With a connected accounting solution for your AR and AP teams to coordinate work with customers and vendors, you can go digital and enjoy the benefits of office automation.
Lockstep, a leader in cloud-based connected accounting solutions, can help you boost productivity and optimize cash flow with:
- Digital Onboarding – Collect master data directly from your customers and vendors
- Accounting Inbox – Make it easy to divvy up work and track progress
- Smart Automation – Automate menial task with accounting integration
- Online Accounts – Give customers and vendors online access to their accounts
Lockstep is an experienced software partner that can help you increase efficiency and accelerate cash flow.
If you would like to learn more about how you can benefit from connected accounting solutions, please contact Lockstep at www.lockstephq.com.