In our last blog post of this series, we broke the myth that accounts receivable software is only beneficial to those in the collections department. Even those as high up as the C-Suite have a use for accounts receivable software, from pulling reports to escalations of troubled accounts and more. Almost every department in a company can benefit from using the software, such as customer service, IT or hired third parties.
Today, we’re going to see how the software helps the traditional department: credit and collections.
How well the collections department is doing in collections reflects directly back on the credit manager. If there are large bottlenecks with not many invoices being paid on and a lot of invoice disputes, everyone is looking at you. Accounts receivable software gives you transparency to see where the issues lie. You can keep an eye on how each collector is doing individually, assign specific accounts to a specific collector and see which accounts need escalated. Using an accounts receivable software benefits the credit manager because it gives transparency into the team, to know exactly how the department is doing.
This is the most obvious beneficiary to accounts receivable software. Collections representatives are able to put mundane task on auto-pilot. No data entry and sending the same email manually to multiple people, it can all be done through the software. When collections representatives aren’t wasting their time doing the same repetitive task, they are able to spend more time on the phone with customers actually collecting on the unpaid invoices. They are also able to keep the communications via email and phone, promises to pay, invoices and disputes in one place, creating more transparency for the credit managers and c-suite.
Clearly, the ones that benefit most from accounts receivable software are the collections representatives. Their tasks are able to be put on auto-pilot and they can get more completed, but the credit manager is also affected because it allows them to better manage the team. They are given more transparency into the daily work of their staff and can report good news back to the executives.