Time is the key to a successful routine process
Time is Decisive
In business, as in life, successes and failures often depend on timing. For the launch of a new product, the moment at which it will be launched will determine its success: is the market ready for this product? Isn’t the product too far ahead of its time? Is it not late compared to its competitors? The latest example is certainly the arrival on the connected watch market: Apple released its watch last and must redouble its efforts to successfully market it in good conditions against its competitors who have released similar products a year earlier.
Temporarily: determinant of the recovery process
In the field of credit management, the problem is identical. TIME Internet is the main determinant of the collection service. The first milestone consists of the settlement date. The following milestones are to be constituted from precise scenarios that the collection manager will have to follow while scrupulously respecting the deadlines, whether for written or telephone reminders.
Indeed, a recovery process followed with precision will demonstrate the seriousness and the credibility of the debtor company. Some tips to improve your receivables management. For your reminders to be effective, the first step will be to define the right contact for your client, the one who will have the opportunity to act on the settlement of the invoice, otherwise your reminders will be ineffective.
Then, be precise in the rate of contact once the recovery process has started. Indeed, at each stage, it is essential to indicate deadlines and stick to them. The last tip that will speed up your collections and reduce your DSO is to automate the parts of the recovery process scenarios that allow it, such as sending a dunning letter.
The contributions of a receivables management software
Debt recovery software like ELOFICASH will facilitate your time management and follow-up of the recovery process thanks to the configuration of scenarios and the setting up of automatic alerts. ELOFICASH will also allow the selection of the right contact through their identification in the contact management module. Economists have been able to observe that it is the periods of crisis that are the most creative of innovation because the scarcity of resources push men to review their processes to be more efficient. It is in times of crisis that the greatest breakthrough innovations emerge.
So encourage innovation and the emergence of new ideas to make your organization more efficient. To sustain your business, it is necessary to have monitoring and measurement tools. Indeed, the implementation of key performance indicators (KPIs) makes it possible to follow the evolution of the various departments of your company and thus, to identify any malfunctions over time. The dashboard becomes a real management tool at the service of the manager and the whole company.
In the current economic climate, where failures are multiplying, the General and Financial Departments must manage, with maximum efficiency, the risks of the customer position , the latter representing on average more than 40% of the total balance sheet of the business. Strategic par excellence, customer risk management requires reliable financial information. Everyone’s involvement, beyond the financial service, and above all a 360 ° view of customers in order to protect themselves against the risk of non-payment and rapid deterioration of cash. Means exist to limit risks and assess the creditworthiness of prospects or customers:
If the publication of accounting elements proves an obligation for companies, the balance sheet and financial data vary according to the websites consulted. Proof of this is the difficulty of collecting the most reliable information, a new internet service has just emerged which compiles all the financial data from these sites in order to be able to estimate them at best. The differences can be so large, the financial ratios so contradictory that they make the economic and financial analysis of a business impossible.
In addition, the information provided represents a past vision of the company, without taking into account the development of the economic situation and the current situation. No one can ignore the domino effect of a failure of a buyer which leads once in 4 to the seller’s failure. Obsolete, obsolete or even erroneous, the information provided cannot guarantee a relevant assessment of customer risk. While credit insurance guarantees a finer analysis of customer risks and compensation in the event of default, companies are subject to increasingly limited credit ceilings and drastic conditions. The only alternative for the company: being your own credit insurer by providing the most efficient customer risk prevention!
Barry Lachey is a Professional Editor at Zobuz. Previously He has also worked for Moxly Sports and Network Resources “Joe Joe.” he is a graduate of the Kings College at the University of Thames Valley London. You can reach Barry via email or by phone.