It would be nice to have a good business, provide good quality products and services, and collect payments with ease. However, late payments and clients that will do everything to avoid paying for your service are a nuisance in the business. This is one of the struggles a company faces and it needs to be addressed immediately to prevent slow cash flow. When a credit or loan goes past the deadline, that is when Accounts Receivable and Debt Recovery come to play.
But these two could take up much time when done manually. So, If you want to save time and analyze financial profitability conveniently, an AR tool might be just for you.
What is An Accounts Receivable Tool?
From sending invoices to calling clients multiple times to track payments and processing payments, these are some tasks an AR team should do. Doing these manually could consume time and delay the money flow in your business. The Accounts Receivable tool does all these works automatically, which leads to stress-free and quicker finished tasks.
What Does An Account Receivable Tool Do?
The workflow of an Account Receivable Tool might differ from business to business. But it mainly revolves around three things: sending invoices, collecting payments, and checking if the first two match.
The Account Receivable tool simplifies a large amount of data the team has to process in collecting payments.
Other than collecting payments and sending invoices, it could also help executives track the efficiency of the AR team.
How Does Account Receivable Tool Work?
Debt Recovery Australia is your “one-stop shop” in terms of Debt Recovery, as it offers legal services, account receivable services, and more to help your business. Get a more organized and efficient business with an Account Receivable tool.
Here’s how the Account Receivable tool works in Debt Recovery:
Organizes and Tracks Receivables
The tool runs the moment a client purchases your service; it tracks down the due dates and payments made by your clients. Other than that, it also organizes the number of client information who owe you.
Sends Payment Reminders
An Account Receivable tool reminds your clients consistently by sending them invoices and reminders. Reminders are often sent a few days before the due date to encourage clients to pay earlier or on time. This tool will help you save time and from much manual work.
Develops Collecting Letters
In cases where a payment reminder doesn’t work, AR Tool can generate letters that give stronger demands that a client should pay. This letter could be developed by the tool or modified and customized as needed, which can be sent via email or traditionally in their mailbox.
Maintains Communication Data
Dealing with debt recovery includes a lot of processes and communication with clients. With an AR tool, you can keep every record of clients from their emails, phone calls, and notes. This is helpful during negotiation, making payment plans, and more.
Analyzing Customer Payment Patterns
AR Tool helps in identifying patterns and trends of customer payments and behavior. Analyzing these factors helps make decisions and debt recovery strategies that will help build customer relationships and profitability.
Merges with accounting systems
The Accounts Receivable tool updates clients’ payments automatically. This tool also gives real-time updates and accurate reports. On-time reports could lead to a faster and more credible data analysis of your cash flow and help decrease DSO (Daily Sales Outstanding).
Getting the Right Account Receivable Tool
An Accounts Receivable Tool might be the gameplayer that your business needs. Choose the right tool to boost your business and help you with profitability by collecting and encouraging timely payments to your clients.