In previous posts, we covered various ways that switching to industry-specific ERP software, such as the automation solutions offered by Oneir Solutions, can make it easier to manage accounts receivable and streamline payments. However, there will always be the occasional customer who cannot or will not pay, who must be sent to collections for more direct action.
It is crucial to have a well-defined policy on handling collections, to help create a beneficial balance between encouraging payment while avoiding harassment. Some key factors to consider include:
- How many days should pass after a due date, before collections activity begins?
- How often should collections calls be placed?
- How many days should pass between each level of escalation in collections activity?
- How much time needs to pass before legal action is threatened, then taken?
As with other aspects of accounts receivable, the solutions provided by Onier Solutions offer ways to streamline this process, as well as improving the success rate of your collections activity.
Our ERP software solution includes a dedicated Accounts Receivable Collections Report. This smart report goes beyond merely listing overdue accounts. It can, for example, exclude customers with an existing credit balance which may offset their need to pay – reducing the chances of mistakenly calling customers who are not actually in arrears.
This report can also be customized based on the age of the overdue balance so that your collections department can focus on accounts which are severely past due.
Rapid Review of Customer Payment Histories
Oneir Solutions ERP software is designed to give your collections agents as much information as possible to help improve their success rates, without requiring lengthy research. The “Display customer account status” option gives an at-a-glance breakdown of their historical payment history, such as displaying the average number of days they typically take to pay.
This allows agents to know ahead of time whether this is a customer who is generally prompt with payment – and can be treated with a softer touch – or if they are chronic later-payers who will need a more hardline approach.
Tracking Customer Touches
The advanced customer relationship management features within Oneir ERP solutions can also be put to excellent use in collections activities. The Client Contact Action notes allow collections staff to log every call, with detailed notes on topics such as:
- Date/time of the contact
- Name of the person contacted
- What was discussed
- Any special offers you made
- Any promises they made
Collections agents will be able to quickly review contact histories and adjust their approach to the situation.
Oneir Solutions Offers Affordable ERP Solutions
Oneir Solutions can streamline your accounts receivable department, while significantly improving the effectiveness of your collections activity. To learn more, contact our team at Oneir Solutions today.