Month-end close in AR can be hectic and stressful for your team, especially in the new normal where you may be understaffed or trying to balance a staff working remotely. It can divert them from credit and collection activities and negatively impact cash flow when you need it the most.
Companies want to show as much cash as possible at month and quarter end to please creditors and shareholders. This can be very difficult, however, if your AR team is tied up answering calls from customers, and performing needless clerical activities.
AR automation with self-service payment capability can relieve your team of needless manual tasks and unnecessary phone calls, freeing them up to focus on higher priority activities such as customer contact and collections.
Here is how to free up time during end-of-month close in AR.
How many calls a month does your AR team handle, especially during critical times like the month-end close? During the month-end close your customers need to reconcile and balance AP just as your team needs to do the same for AR. This can create an extra burden for your team. Answering payment application questions for customers that pay by check or initiate payments electronically over the phone can use up a lot of time.
Phone calls to find out whether or where a payment was applied no longer happen with self-service payments. Customers who use self-service already know the payment details, since they made the payment and application themselves.
With self-service payments customers don’t need to call your team to initiate electronic payments, or pay by check which requires more time and cost to process on your end. Self-service payments free up time that your team can spend more productively calling customers and collecting AR.
Customers can easily access documents such as invoices or statements through a self-service portal. This eliminates calls to your AR team for document copies, and the time spent retrieving and sending the documents.
Customers want the flexibility and convenience of self-service. It gives them the ability to work wherever and whenever it suits their needs. They don’t want to be tied to your office hours or need to call your AR team to answer payment application questions, make payments or request documents.
Self-service is a natural extension of AR automation. It gives your customers ownership in the business process, and saves time and reduces costs for all concerned. Automating credit and collections activities helps to increase profits, cash flow and shareholder value.
Lockstep Collect, a leader in cloud-based credit and collection platforms, can help you collect cash in 4 ways:
- Cloud-based solutions
- Automated customer communications
- Customer self-service
- Collections Activity Management
Lockstep Collect is an experienced software partner that can help you maximize your collections and cash flow in the new normal.
If you would like to learn more about how you can benefit from automated credit and collection solutions, please contact Lockstep Collect at www.lockstep.io