In the advertising industry, accounts receivable have a bad track record. Studies show that a vast majority, 62 percent, are not getting paid on their invoices for over 60 days. Depending on the size of the advertising company, payment can range between 49 days to a whopping 100 days. That kind of delay in cash flow can hold back a company and create time delays. Using an advertising collections software can decrease these payment days substantially. In fact, studies show the use of an advertising collections software can actually get companies paid 20 percent faster.
There are three major benefits that advertising collections software can bring to an advertising company.
One very unique aspect of the accounts receivable process for the advertising industry is the use of multi-phase campaigns. Instead of using spreadsheets and manually creating payment schedules for each unique customer, an advertising collection software can make this process a breeze. The software can automate the payment scheduling process for you.
Depending on the size of the advertising company, credit collections teams tend to stay lean. Invoicing hundreds of customers a month can be a daunting task. By implementing an advertising collections software, these invoices can be automatically sent out to clients. Further, the invoices can be sent via email, streamlining the process and getting the invoices to the client quickly.
To make the payment process as fast as possible, online bill pay is the way to go. An advertising collections software allows clients to pay via credit card or ACH through an online payment portal. This eliminates payment wait times and possibility of a check “going missing in the mail” or bouncing.
The advertising industry may have a bad rep when it comes to accounts receivable, but using an advertising collection software repairs that.
Advertising companies should be focusing on their clients, not worrying over who hasn’t paid their invoices. Lockstep Collect, an automated collections software, can integrate to most ERP and advertising management solutions.