Improving Accounts Receivable with Automated Email

Sending thousands of manual emails a year to customers just doesn’t make sense. It would be practically impossible to take on new customers and ensure that they will pay on their accounts if you only have a small team in the accounts receivable department trying to keep up with daily email messaging and phone calls, unless these emails became automated. Throughout this blog posts, we’ve explained how automated email works, how it can save you time and how it can help improve customer service. In this blog post, we’re going to take a look at how automated email can improve your overall accounts receivable performance.
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Improving Customer Service with Automated Email

When you’re sending emails manually, it doesn’t leave a lot of time for customer service. Believe it or not, accounts receivable professionals are also customer service professionals. If a customer feels like the payment process is difficult or they dread calling in to pay an invoice, you have a big problem. Customers are going to put off paying, affecting your cash flow. The accounts receivable department should be practicing the best customer service tactics in order to collecting on invoices as early as possible.
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Saving Time with Automated Email

As an accounts receivable professional, a good majority of your time is probably consumed by sending email. And if it isn’t, that’s probably because you have too many other things to do than sit around and type out emails to customers. Either way, doing this task manually will inevitably leave you behind on your accounts receivable. Some customers simply won’t get touched. The solution to this is using automated email. In our last post of this series, we explained how automated email works. Now, we will go over some of the time saving benefits of using auto-email.
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10 Industries Known for Slow Accounts Receivable Collection

Sageworks, a financial information company, recently conducted a financial statement analysis and found that of the many industries in which business operate, there are ten that typically have a harder time with rapid accounts receivable collection than others. Read below to learn which industries have historically high accounts receivable days and what exactly that means for businesses operating within them.
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Credit & Collections Law: What You Need To Know

It’s all well and good to keep track of the latest best practices in credit and collections and try to get creative in your methods to collect on open invoices, however, there are laws that need to be followed. There are numerous laws in place that protect consumers and buyers when it comes to collections practices, but usually leave businesses within a narrow scope to do their jobs and collect. If these laws are violated, they could come with some hefty fines and punishments. Your credit and collections teams should at least know the basics of these laws.
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The Psychology of Accounts Receivable

No matter how automated the process of accounts receivable becomes, you’re still dealing with real people that need to pay you. There is always someone on the other end of the phone who is giving you the excuse for not paying or explaining why they need to dispute the invoice. In order to figure out the best way to deal with late payment, it is best to look at accounts receivable from a psychological stand point. Knowing how your customer’s behavior impacts their payment or non-payment can help you to avoid a crisis before it occurs. Further, understanding how your behavior can impact a customer’s payment can help you to get paid even faster.
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How to Create A Customer Credit Application Form

Credit Application FormA credit application is critical to assessing and managing business risk and to identify those customers who you may not want to extend credit to. Despite this, most companies either do not use a credit application form or they do not use them consistently enough. Often times this is a direct result of not knowing what to include in the form in order for it to be effective. A more comprehensive application will give you a better idea of where the customer stands with credit worthiness and gives you more confidence in making the right decision.
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The 6 Commandments of Accounts Receivable Emails

Research from UCLA found that words only convey 7% of the message you are trying to send, vocal elements convey 38% and nonverbal elements convey the remaining 55% which means your accounts receivable email strategy needs to be buttoned up pretty tight if you want them to help you get paid on time.

Below are a handful of accounts receivable commandments that anyone writing collections emails need to know.

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How Does a Controller Affect Accounts Receivable?

What is a Controller?
A controller is the head of an accounting department in the company and is in charge of all those within the accounting department, such as accounts payable clerks, accounts receivable clerks or payroll. Although these areas may be split into different departments among accounting, the controller is responsible for overseeing financial statements, general ledger, budgeting and tax compliance.
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Features of Accounts Receivable Software for the Medical and Healthcare Industry

Collecting from customers in the medical and healthcare industry isn’t simple. Due to many laws that are in place, whatever system you use for collections needs to be extremely secure. Trying to reach out to each individual customer under these circumstances can prove to be time consuming and difficult. The only way to overcome these hurdles is by finding the right accounts receivable solution for your industry. Below are 4 of the most important features that should be included in an accounts receivable solution for the medical and healthcare industry.

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Why You Should Be Hiring a Credit Manager

What is a Credit Manager?
A credit manager plays a vital role in a business’ accounting and accounts receivable department. If a business works on credit terms with other businesses, the credit manager is the deciding factor on whether those potential clients become customers. They are responsible for implementing and overseeing a credit policy, deciding what factors determine a customer’s credit worthiness and eligibility for receiving credit terms.
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Overcoming Collection Email Hurdles: Part 5

Even if you have followed all our previous blog post tips on overcoming email hurdles to a T, you can still run into one major problem. Sometimes customers simply forget. They’ve received and opened your email, but haven’t had a chance to make a payment. If you haven’t sent out a reminder email, you are just as much at fault. You should always be reminding your customers to pay on a regular basis. Unfortunately, who has the time to do this?

In this blog post, we’re going to look at the best ways overcome the email hurdle of finding time to send reminders.
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Overcoming Collection Email Hurdles: Part 4

 

Actually getting the customer to pay is one of the greatest hurdles to overcome in collection emails. You can lead them down the right path but there is no way to force them to open their wallet and pay on the invoice. The only way to be successful is to follow the best practices and give them all the resources they need to make payment immediately.

So far we’ve discussed how to ensure the email is in their inbox, how to get them to open it, how to get them to read it, and now is the moment of truth on whether you can get them to pay.  Continue reading

4 Reasons Manufacturers Need to Automate Accounts Receivable

In the manufacturing industry, you often have many customers with many invoices to send out. In fact, we’ve seen manufacturing companies with over 100 invoices to send just for one customers. If those invoices are being sent out manually, either by printing and mailing or email, that could take hours. How do you expect to make follow up phone calls or spend time collecting from customers if you can barely get their invoices out on time? Automated accounts receivable software eliminates these manual tasks so you can focus on the most important aspect: collecting payments.
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Why Lawyers Need Automated Accounts Receivable Software

Among the many tasks that an attorney is faced with, billing clients usually falls to the back burner. The manual task of creating an invoice, crafting an email, sending it out to each individual customer and waiting for reply is a lot of work. Even if you have a full time collections representative to do this work for you, it’s often difficult and time consuming to get this done with every client and collect all payments on time. In order for a law firm to stay on top of this, they need accounts receivable automation.
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