In an ideal world, we wouldn’t have to make phone call after phone call to collect payments for services rendered. Collections can be an expensive part of running a business. The longer they are outstanding, the more it hurts our finances and cash flow. Switching up the accounting processes may help close the cycle and reduce the chance for collections.
Many times collections become an afterthought or the last thing on the weekly to-do list. It’s an unpleasant task, takes time, and it’s no wonder why it’s on the bottom of the list. Most often, it’s a manual process that requires looking through unpaid invoices, verifying days-outstanding, and then making the dreaded phone call. You can save time by adding automation through the use of an enterprise resource planning (ERP) solution, like NetSuite® ERP.
The financial functionality offered by NetSuite ERP provides automation that is sure to reduce the time your team spends on collections. You can start by turning a sales order into an invoice, with just a single click. No re-entering customer data, contract terms, the products or services they ordered, or any other data. Why enter information twice and do double the work? After an order becomes an invoice, you can email or mail your invoice to the customer. Sometimes customers misplace invoices, these things really do happen. At the 15 or 30 day window, you can initiate a workflow that will automatically email or mail your customer a follow-up invoice or statement. Hopefully that is all it takes to generate payment, but you can send additional notices automatically for as long as you choose. After time, you will develop a payment history with your customers. You will be able to identify issues behind delinquent payments. Mistakes happen, but if you have a habitually late-paying customer, you can make the hard decisions about requesting payments up front for future purchases, increase late payment penalties, or cease working with that customer altogether. The effort put into making collections may be better spent on finding new customers.
Collections are painful because the process traditionally includes a lot of manual steps. The automation offered by ERP solutions, such as NetSuite ERP, can make a challenging process a little less painful. In addition, the visibility garnered from these financial transactions provides valuable insight into which customers are good-payers or delinquent-payers. Contact Kraft Enterprise Systems, LLC for more information about saving time and headaches during the collections process.
By Kraft Enterprise Systems, LLC, a Tennessee NetSuite Solution Provider