If you have manual collections, you need to evaluate your collections with the results that can be achieved with automated collections. It is important to understand the fundamentals of your manual process compared with automated collections.
Here are four fundamentals of manual collections.
Integration
Manual collections rely on regular email and spread sheets, which are not integrated with your ERP. Not having ERP integration means that information has to be manually transcribed between emails and your ERP system. Collectors spend a lot of time on clerical activities instead of collecting accounts receivable.
If you have hundreds or thousands of customer contacts, it can be nearly impossible for your team to keep up.
Automation
Manual collections don’t have automated communications to do follow-ups, track promises, and resolve disputes.
Your collections team will be tied up keeping notes; updating files; writing emails; and facilitating dispute resolutions.
Visibility
With manual collections the responsibility to manage collection activities falls on your team. They need to know what was accomplished, and determine what needs to be done next. If you have hundreds or thousands of customers, you must have visibility of the collections landscape to determine priorities, so your team know what to do next without searching for priorities.
Automated collections with activity management can give you the visibility needed to achieve collections KPIs.
Control
With manual collections it’s hard to control collections activity. ERP integration and activity management capability can give you the control you need to manage your team in the fluid environment of the economic recovery. Activity management gives you the resources to determine where you are; what the priorities should be; and how to use your resources to achieve collections goals.
Be in control of your collections process with activity management. Without it, you risk reacting instead of controlling and managing your collections.
Automated collections processes are more efficient and will help you achieve your collections KPIs. With automated credit and collections solutions you can 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 or visit us at www.lockstep.io.
