Introduction To Automated Collections Management
Features Automate Collections Management
As finance executive, you may be familiar with the challenges posed by traditional collections management, such as manual processes, slow tracking and tracing of payments, and duplicate data entry. Fortunately, today you can use solution for automated collections management that can streamline your overall Order to Cash operations and, in turn, improve cash flow.
This guide will discuss the benefits of an automated collections solution, provide an overview of the features included in this type of solution, and provide instructions for configuring the solution.
Benefits of Automated Collections Management Software
An automated collections management solution helps simplify and speed up your accounts receivable processes. With automated collections, you can:
-Improve accuracy and speed of invoicing and payments processing.
-Automatically generate timely dunning notifications and escalations.
-Gain visibility into customer payment performance to better predict cash flow.
-Eliminate manual data entry.
-Provide your customers with more payment options.
-Initiate collections activities more quickly and efficiently.
Features of Automated Collections Management
When considering solution for automated collections management, you should look for the following features:
-A secure payment platform that enables customers to easily view, manage and make payments online.
-Automated dunning notifications and escalations.
-The ability to apply late fees and penalties.
-Integration with financial reporting and accounting systems.
-Multiple payment options, including check, credit card, ACH/Wire, and cash.
-Real-time access to customer payment performance.
-The ability to initiate legal collections activities, such as account liens or freezing.
-Pre-populated documents, such as collection letters and demand letters.
Configuring Automated Collections Management
Once you have selected an automated collections management solution for your organization, you will need to configure the system. To do this, you will need to:
1. Specify the payment options you wish to offer customers.
2. Configure dunning notifications and escalations.
3. Set up late fee policies.
4. Link the payment platform with your financial reporting and accounting systems.
5. Test the system to ensure it is configured properly and working as expected.
Conclusion
Automated collections management solutions provide number of benefits, including faster and more efficient invoicing and payments processing, improved cash flow, and increased accuracy. By utilizing the features included in collections management solution, and following the steps outlined above, you can set up the system to automate your collections processes and benefit from improved results.
