![]() The AR Disconnect causes miscommunications and friction that delay payments and increase delinquent accounts.īy empowering AR and AP teams to communicate effortlessly over the cloud to manage the invoice to cash process will increase collaboration and boost customer experience. More importantly, AR automation software can help bridge the AR Disconnect-the chasm that forms between business and customers during the payment process due to a lack of transparency into receivables, ineffective communication methods, and a reliance on manual workflows. Mapping both current and outstanding payments side by side gives teams a high-level AR overview they can use to make well-informed decisions. The best solutions possess built-in accounts receivable aging reports that segment overdue payments by debt age based on due date. From automating dunning letters to inciting full-blown transformative change, accounts receivable software tools help teams track and prioritize collections efforts-and in some cases even eliminate the need for collections calls altogether.ĪR automation software makes it easier to prioritize collections based on age of debt and likelihood of collecting. Use software tools to track and prioritize collections effortsĪutomating AR functions can have a number of positive effects on managing and reducing delinquent accounts. ![]() Robust software solutions like Versapay that offer a collaborative accounts receivable portal can go a long way in streamlining communications between AR and AP teams and their customers.Ĥ. When delinquent accounts transfer to collections, AR teams can improve related communication by having facts ready during calls, striking the right tone, using conversational strategies, and validating the customer’s experience. Add “please” and “thank you” to communications and try to give the benefit of the doubt.Ĭustomers consistently late on payments should receive more direct language. Politeness can go a long way when managing delinquent accounts. Effective communication can’t be accomplished if the only strategy is AR teams harping on customers repeatedly until they pay. Of course, communication is a two-way street. ![]() The State of Digitization in B2B Finance report by Versapay reveals that 85% of C-level executives report having lost revenue when invoices aren’t paid in full due to miscommunication during the payment process. Persistent follow-up is critical and lets customers know the company is serious about collecting the payment. ![]() Simple steps like reminding customers when a payment due date is coming up, and then following up promptly when a due date is missed, can drastically decrease the number of delinquent accounts. These include communicating regularly and transparently offering multiple communication channels providing options to resolve debts and maintaining respect and empathy. There are several best practices companies can implement for effective customer communication and collaboration. Communicate (and collaborate) with customers effectivelyĪ more collaborative accounts receivable process leads to better communication between AR and AP teams and builds better customer relationships:įigure 3: The State of Digitization in B2B Finance | Versapay | Wakefield
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