Debt collection is a task that can at times be very arduous due to all the moving parts that are involved. Those in charge of collecting have the daunting task of turning those invoices into cash as fast as is humanly possible. Some steps along the way act as a hindrance to this end result due to the enormous amount of time spent on things like data entry, sifting through reports which are ageing by the day, tracking down who to call and similar tasks which can waste valuable time. In this field of work, one cannot compromise on productivity. Well, it is not easy but what if I told you it could be simple? The following tips are some simple but very effective debt collection tips that could help you make it just that.
Automate and Centralise your Information Systems
Do you often find yourself wasting a lot of time jumping from one system to another in search of different bits and pieces like sales contact credit and shipping information, all of which create a tricky puzzle? Collectors spend far too much time gathering information from multiple sources. The solution is to have one integrated accounts receivable system, accessible to the whole team. This can significantly reduce the time wasted in preparing for calls and spend more time soliciting customers for payment.
Focus on Priority Accounts
Most definitely some accounts take precedence in the hierarchy of accounts for collections. Especially if cash flow is an issue, ageing receivables are a top priority for the business. Thus, these accounts naturally should be dealt with first. These could be accounts that have orders on hold due, have a long list of broken promises, have large dollar amounts outstanding, and so on. After tending to these big fish, you can now tend to the other accounts that may just need an additional reminder.
Maximise Each Instance of Communication
How do your customers prefer to be contacted about invoices? You may find that certain people are more responsive to email while others are most suited to dialogue over the phone or will respond to a letter. If you can make notes about how best to contact repeat customers, you will know the best and most effective way to get in touch with them if an invoice goes unpaid. Also, consider little things such as having a secondary contact in case your main contact is out of the office or leaves. For effective debt collection in Sydney, it is critical to attend to needs on a per-case basis. Not all debts and delinquent payments deserve the same approach.
In conclusion, it is imperative to focus your time and energy on delinquent accounts, settling disputes, and learning how you can avoid them in the future. It is beneficial as well to hire or to at least consult a debt collection agency.