It’s nice to hit a home run once in a while and have a major business success, but most of the time success in business is the result of attention to detail and consistent accurate execution of transactions. The accuracy of customer master file data directly affects the successful execution of transactions. Making sure that master data is correct and up to date is essential to maintaining the accuracy of customer data. That is why every accounting department should be practicing Profile Management.
Profile management is the process of maintaining accurate and timely customer master data for billing contacts including:
- Email address
- Phone number
- Mailing Address
- Payment methods and information
When this information is correct and up to date transactions flow smoothly without error, and cash is collected on a timely basis. If master data is incorrect or not up to date, errors can occur which slow the collection of cash and reduce the efficiency of your AR team.
Profile Management will reduce the time your AR team needs to spend correcting avoidable errors and make your company easy to do business with. When new customers are set up in your system, your onboarding process should include verification of all master data information to make sure that transactions flow smoothly from the start of business.
After business starts with a new customer, it can be difficult to find out about changes that should be made to customer master data. It is better to update master data before a transaction is negatively impacted, and you learn about it after a dispute or unauthorized deduction occurs, but relying on notices from customers, your sales team or social media updates such as LinkedIn can be problematic.
The best way to make sure that Profile Management is done before a problem occurs is to provide a self-service portal for your customers to update their own master data. New customers should be introduced to your self-service portal as part of your onboarding process. Instruction should be provided and follow up done to ensure that your customers use your self-service portal to update their master data for changes and other activities such as online payments and dispute notices. The time your team spends upfront getting your customers comfortable with your self-service portal will be well worth it in time saved resolving problems and delays cash flow.
Profile Management is essential to efficient collections and meeting cash flow targets. Automated credit and collection solutions can help you achieve your cash flow goals.
Lockstep Collect, a leader in cloud-based credit and collection platforms, can help you collect cash in 4 ways:
- Cloud-based solutions
- Automated customer solutions
- 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.