GETTING PAID WITH YOUR COLLECTION STRATEGY

The whole point of creating a collection strategy is to get paid faster. If it were easy to collect on unpaid accounts, no one would need a specific collection strategy tailored to their industry and customers. However, collecting on unpaid accounts is a real problem for many, many businesses. Once you’ve created the collection strategy and have it typed out and posted for your collection representatives to see, the last step is simply ensuring that you get paid. Here are some tips to help you follow up on your collection strategy and get paid.

1. Document Your Collection Strategy
Once you have decided what your collection strategy will be and each step that you want your collection representatives to take, then you need to document it. The more detailed and step-by-step you can get, the easier it will be for you team to follow and less mistakes they will make. Make sure to post this somewhere that is easily accessible by your team, such as a common folder or internal sharepoint site.
2. Hold Collection Representatives Accountable
Make sure that every collection representative reads and understands your collection strategy. One way to do this is to have them sign the document after you have distributed it. Once everyone has read and acknowledged it, you need to hold your collection representatives accountable. If you know that they aren’t following the strategy that you have created, you need to talk with them and understand the consequences of not meeting the collection strategy guidelines.
3. Pay Attention to KPIs
When you are implementing the collection strategy, take note of your previous KPIs and KPIs after using the collection strategy. Note any changes, whether good or bad, and address them. If you don’t see any changes in some areas, you may need to tweak your collection strategy again. You may not get the strategy right on the first time and go back and find new processes to get paid quickly.
4. Use an Automated Accounts Receivable Software
What makes a collection strategy help you get paid faster is by documenting how often a collection representative should be following up with customers. No matter how many times you tell them to do it, if they simply don’t have time to get to all their calls it won’t work. Using an automated accounts receivable software eliminates manual tasks and frees up time for collection representatives to get on the phone and make important follow up calls. Instead of sending emails one by one to each customer, it is done for them. Additionally, accounts receivable software can tell the collection representatives exactly who they need to call next, when and what for.