Accounts receivable collection software: 5 reasons to equip yourself
Improve DSO and reduce payment times
Contribute to the improvement of the WCR. Customer feedback on collection software shows a 10 to 20% improvement in DSO (depending on the initial gap versus BPDSO) and a 30 to 50% reduction in late payments. This improvement generally comes from several areas of optimization: better performance analysis, better targeted and increased follow-up thanks to automation, and a stronger focus of the teams on critical files thanks to the time freed up by task automation.
Analyze your performance better and faster.
Building and managing business dashboards is often time-consuming for companies. However, these dashboards are essential for analyzing and sorting the data in order to better identify possible areas for improvement (a geography, a product, an agency, a specific customer segment, etc.) and therefore to define the most impactful and relevant action plan for your DSO.
Better manage and measure your customer risk
By consolidating multiple sources of information, building a score that takes into account your own history and making it easier for you to assess appropriate credit limits.
Better collaboration to create a shared cash culture
Within the company and its various entities – sales, marketing, management, etc. – share a common platform, efficient collaborative workflows and the same indicators, to create stronger governance and buy-in.
Automate collection, credit insurance and financing actions
Depending on the context of each company, the tasks to be automated will be distinct but the productivity gain is very significant. The time saved can then be focused on customer satisfaction and the processing of priority actions.
5 questions to ask yourself when choosing a collection solution:
- Implementation times. Is your collection software available online immediately? Here again, there are many disparities on the market between the majority of solutions that require a specific project and long lead times that range from a few weeks to several months. The current and modern solutions can be implemented…immediately and allow for a free 1-month online trial (freemium). Avoiding long it or tender processes. Use and compare collection and credit management software, it will be much faster and more efficient!
- Flexibility of the offer. The solution must adapt to you, not the other way around. Can you modify the criteria of a client portfolio in a few clicks? Add, delete or modify a dunning scenario in less than a minute? Decide to change a mail template, modify it to your liking? Declare a dispute about a part or a customer?
- Dashboards. Does the solution offer easy-to-use and easy-to-implement dashboards? Do they allow you to analyze performance at different levels of your organization? At the group, subsidiary, agency, regional, customer portfolio, sales or other level depending on your organization.
- Hidden costs. It is essential to check what is included or not in the proposed price, for example major updates, the cost of hosting, the price of the infrastructure, the cost of data extraction licenses to connect to your IS, access to a hotline, price evolution factors, but also aspects that structure the customer’s position, namely the integration of the platform with the ecosystem: credit insurers, factors and other stakeholders. In some cases, the hidden costs may add up to more than the original cost presented.
- Cloud and SaaS: To meet all of these objectives, it is imperative to choose a 100% SaaS solution (license including all costs and services) and Cloud (available online and secure). SaaS is also the right to make mistakes, you are not satisfied, you close your subscription at the end of the term and move to another solution.