How to transform your business into a collections machine

These businesses decided to take control of cash recovery

The cost of waiting to be paid is a daily liability on business. Your working capital is in deficit every day that a customer delays payment on their invoices. Then there’s the time you spend chasing payments. What else could you be doing to grow your business?

6 Telltale Signs Your Business Can Improve Collections Efficiency:

  1. Your team is spending too much time chasing overdue payments.
  2. Your team is bored with the mundane task of writing reminder emails.
  3. Your sales look good but the bank balance doesn’t.
  4. Your finance team can’t keep track of a growing list of debtors.
  5. Your customers have plenty of excuses for why they don’t pay on time(and it’s all your fault).
  6. Your relationships with customers who owe you money are deteriorating.

How technology eliminates constraints

The clear call to action from the Australian Government is to embrace digital innovation. Why? Because the associated economic and social opportunities could be worth as much as $315 billion to the Australian economy over the next decade, according to a 2018 report commissioned by CSIRO’s Data61.

In business, productivity improves when new technology helps people to achieve more in their day with less effort, less stress and less mess. With more time available to allocate to high-value work, the impact of the right technology in business can be profound.

In the accounts receivable function, automation provides an easy upgrade to legacy processes that staff find routine and time-consuming. And when it relieves staff of the mundane and low-cognitive jobs that slow them down, all the better.

That’s how you move people from ‘deficit’ to ‘delight’ and in turn, create more time for customer care.

Accounts Receivable Automation Before and After

The fact is, productivity improves with automation.

In the collections example below, ezyCollect’s customer was spending over 12 hours each month to manually prepare monthly statements and a further 40 hours each month to email hundreds of payment reminders to overdue debtors.

With ezyCollect’s automation, the company generates around 600 payment reminders to debtors each month, at zero labour cost, double what was possible manually.

On top of that, average days overdue dropped by 66% in the first four months.

Impact: ezyCollect’s customer recovered an extra $476,700 (based on estimated annual revenue)—directly related to their improved collection time.

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Lacklands achieves 95% on-time payments with ezyCollect

Lacklands is a one-stop shop for photographic supplies in New Zealand (NZ). Lacklands’ fast growth brought new challenges to the business, including a mounting list of debtors.

The  assistant accountant was responsible for managing collections and keeping credit management on track, but keeping track of more than 1,000 small debtors each month was almost a full-time job.

After implementing ezyCollect, Lacklands reported the following:

  • 80 percent of collections work is automated, freeing up time for other accounts duties.
  • 95 percent of debtors pay on time, following automated payment reminders.
  • The system drives efficiency by pinpointing ageing debtors who need a phone call.

Read more about Lacklands’ success:

Martec slashes overdue accounts by 80 percent with ezyCollect

MARTEC’s ceiling fans, LED lights and bathroom fixtures are stocked in major wholesalers in Australia and internationally.  With more than 3000 customers on account at any time, managing receivables to collect money was a full-time job for two staff.

After implementing ezyCollect, Martec reported the following:

  • The automation saves 8 hours per day, allowing the team to deploy to other tasks that need their time and attention.
  • They now take decisive action with confidence as they have full visibility of ageing invoices.
  • Communication with debtors improved as overdue debtors consistently received polite reminders to pay, with copies of invoices attached.

Read more abut Martec’s success:

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Your receivables before and after automation

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