Collection software: why use it?
Make life easier for your business and get your invoices paid on time.
Source : meilleure-innovation.com
Léa Boëts September 20, 2022 Reading 5 mins SOFTWARE
If you own a business and issue invoices to customers (for the sale of a product or service), chances are you’ve found yourself in the following situation: a customer doesn’t pay the invoice on time. This is where the miracles of debt collection
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The use of debt collection software is now commonplace in all major companies, as customers frequently fail to pay invoices on time. With debt collection software, the time and energy spent on this task is virtually eliminated, and the rate of on-time payment soars.
What is collection software?
Debt collection software, or Credit Manager, is a tool that will manage the entire collection process using artificial intelligence, generally for out-of-court collections, but also sometimes for legal collections (if out-of-court collection has failed): its main aim is to spare the company tedious and uncertain tasks.
From personalizing customer reminders toautomating procedures,setting up credit rules and presenting a collection schedule, good collections software manages it all, and has many advantages! It plays a major role in ensuring the financial health of your company.
It can be combined with accounting software to provide a clear view of the payer profile database, and avoid double data entry.
5 reasons to use collection software
So yes, of course, there are lots of different reasons to use software of this kind, but we’re not going to give you a huge list (that would be boring for you). So we’ve selected the top five reasons to use collection software, to give you an idea of the impact such a tool can have.
A better tool than Excel and accounting software
Automation on Excel (or Google Sheets) is very limited, and managing invoices takes a considerable amount of time as soon as the company is a little more developed, as does accounting software which is not sufficiently automated and/or optimized for this task. Dedicated collections software will be perfectly optimized and dedicated to this task, representing the perfect compromise.
Cash flow restored
As the software reduces payment times and allows you to view outstanding receivables, the company’s cash flow is more secure and reliable. This makes the company appear more secure, and enables it to invest more easily.
Saving time and convenience
Having collection software can save a lot of time. Instead of having to find unpaid invoices and follow up customers manually… everything will be automated, including customer reminders, which will save precious hours. What’s more, you’ll be able to find all the details of your outstanding receivables on the software, giving you a clear, concise overview.
A more professional appearance
The software is computerized, so everything is automated, meticulous and perfectly timed. For existing customers, this represents a guarantee of professionalism and faith in the company. As a result, certain financial partners who could be a source of outside funding will be more at ease when faced with this issue.
Cost reduction
Of course, saving time means saving money. The person in charge of invoice management will spend infinitely less time on this task, which means that either a position can be eliminated, or that person can be assigned to other tasks that bring value to the company. What’s more, reducing the rate of unpaid invoices is good for the company’s cash flow.
Why is collections software so popular?
Frequently asked questions about collection software
Why is collections software so popular?
Over the past few years, collections software dedicated to businesses has been gaining in popularity, and not for nothing! When you consider that only 40.5% of companies (in 2015) pay on time, the value of collections software makes perfect sense, especially with the fact thata company suffering payment delays of over 69 days will be 12x more likely to enter insolvency.
What are the main criteria when choosing a collection software?
Quality collection software must meet the following criteria:
– It must be ergonomic and easy to use
– It must be easy to link to accounting software
-You must have access to data in real time
-It must allow you to automate a great deal.
What is DSO?
DSO (Day Sale Outstanding) is the French acronym for Delayed Payment Outstanding (DMP). This term is widely used in the collections industry, and is a good indicator of collection performance: the higher the DSO, the higher the risk.
Because we can’t change the past, I’m passionate about tomorrow’s world, which will be driven by today’s emerging innovations. Between home automation and technological innovations, I wonder about my future everyday lifestyle.
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