What’s it like to use accounts receivable management software? To put it simply, using accounts receivable management software is like having the perfect child or, to keep it relevant, hiring the perfect employee. The system will always do what it’s told to, when it’s told to do it, and exactly the way you asked to have it done. Furthermore, you don’t need to worry about paying for health insurance, sick days, or vacation time.
While the above is true and attractive by itself, let’s get into the real and tangible benefits of implementing accounts receivable management software. Companies who utilize this technology see some amazing results; simply by automating their most time consuming daily activities. For example, collectors waste hours figuring out who they are going to call, figuring out what they need to talk to them about, and tracking down their contact information. When you have an accounts receivable management software system in place, gone are the days of digging through emails and sifting through spreadsheets to find your oldest or largest outstanding invoices and the related information; the system will do all of that for you and prioritize which calls you need to make first.
Companies that implement systems like Anytime Collect are able to reduce transaction costs, improve cash forecasting, optimize staff productivity levels, avoid financing costs, minimize staffing costs, and realize a rapid return on investment! Accounts receivable management software does more than just automate your activities, it truly changes and the way collectors work and empowers them with everything they need to follow proven best practices.
Check out this slide deck to learn 11 ways accounts receivable management software will change the way you work and help you significantly improve your invoice collection performance.
A BREAKDOWN OF THE 11 MAJOR BENEFITS OF ACCOUNTS RECEIVABLE MANAGEMENT SOFTWARE
As the above presentation mentions, a recent Paystream Advisor report shows that companies who use accounts receivable management software to automate collections are realizing:
- 10 to 20 percent reductions in daily sales outstanding (DSO)
- 25 percent reductions in past due receivables
- 15 to 25 percent reductions in bad debt reserves
- ROI in as little as 2 months.
That sounds great, right? But what do those results actually mean? To illustrate, let’s look at a few examples:
- On average, companies write-off 4% of accounts receivable as bad debt. For a 10 million dollar company, that means they are writing off $400,000 each year.
- If this company implemented accounts receivable management software and realized a marginal 10% reduction in bad debt reserves, they could save up to $40,000 a year; cash which could certainly be used for growth, investment in capital equipment, employee salaries, and in many other areas.
- On average, companies have credit terms of just 28 days, but average DSO is 61, more than double the agreed upon terms! According to Paystream Advisors, if these same companies were to implement accounts receivable management software and recognize a reduction in DSO of 10-20%, they would have a DSO between 49-55 days– over a week faster!