If you’re considering accounts receivable collections management software, you’ve likely identified a business need that you can’t currently meet. Maybe you’re looking for a way to streamline collections and reduce time spent on manual tasks. Maybe your team lacks payment forecasting tools. Or maybe you’ve run one too many days sales outstanding (DSO) reports and found that your current collections workflow isn’t doing the job.
Whatever the reason, you need a solution that can not only resolve your identified challenges but also improve your accounts receivables collections in other ways.
With the right platform, you can enhance customer service, reduce overdue invoices, improve collections metrics, improve DSO, and increase team productivity all at the same time. The secret lies in automation and selecting the right accounts receivable automation collections solution for your business.
What to Look For in Accounts Receivable Collections Solutions
There are several criteria to consider when looking for accounts receivable collections solutions.
First, research the history of platform providers and their credibility as a company. How long have they been managing their clients’ collections services? How many customers do they serve? What’s their policy on handling past due accounts?
Consider the technology itself as well:
- How fast can the platform integrate with your existing enterprise resource planning (ERP) systems?
- Is the platform capable of integrating with custom ERP builds or only out-of-the-box implementations?
- What types of features and services are on offer?
System costs can’t be ignored either. Every company has a budget, so it’s necessary to pick a collections management software that aligns with your company’s size and projected needs. Also, factor in the ROI of your investment by considering how a new accounts receivable system could bring more money in.
If you gain a new platform that enables automation to reduce your DSO, that platform may be worth more over the long-term than the up-front price suggests.
Essential Features to Look For
Looking at the platform in a more granular way, which specific features offer the best potential to increase collections management efficiency? While we could spend all day going over specific functions, here are a few of the most important features to consider:
- Data metric aggregation that collects all client data and makes it available to all employees in the collections department.
- Automatic alerts that proactively notify you when a client’s invoice is overdue or when a payment is made.
- Automated invoice escalation that notifies you of late invoices and provides a simple system for addressing overdue payments.
- Payment forecasting that enables you to predict future cash flows by monitoring history of issued invoices and existing data
These four categories of features are a great starting point for accounts receivable optimization, particularly when your company has been stuck with outdated manual workflows.
What Are the Benefits of Better Accounts Receivable Collections Management?
Provided you find the right automation solution for your business, better accounts receivable collections management can improve your operation in several key ways:
- Lower your DSO with automated follow-ups and consistent collection policy enforcement;
- Improve customer satisfaction by automating all issued invoices and payment reminders;
- Centralize customer data and get more insight into payment trends, customer behaviors, and other critical data points for payment forecasting.
But remember, these benefits are dependent on two factors: (1) Selecting the right accounts receivable collections management system, and (2) Finding the right integration partner to bring that system online.
Unlock Better Collections Management Tools With Gaviti
Gaviti offers an innovative approach to account receivable collections management that other companies can’t match. Unlike competitors, Gaviti’s automated A/R collections platform can integrate with any and all ERP systems on the market. This includes big players like Oracle, Netsuite, or SAP, but it also includes any custom ERP builds or modules you may be working with.
This means that Gaviti can be easily deployed and aligned with your existing systems without the cost of expensive integration development. Combined with Gaviti’s extensive automated features, user-friendliness, and ease of use, it’s one of the most effective and versatile automated accounts receivable solutions on the market.
Contact our team to learn more about our solutions and try a free demo of our platform today!