Can Credit & Collection Management incorporate automation?
Automation is now a major game changer in the O2C processes used by the majority of organizations. Automation has been a part of the Credit Management O2C cycle for a fair amount of time.
Despite having access to all the resources, some people are still behind in adopting new technologies. Based on the volume of invoices they processed or because of industry practices that cried out for technological solutions, some organizations immediately recognized the advantages of automation.
Still not persuaded that you require an automated solution?
The realization that you are more prepared than you believe may surprise you. There are some problems you may be experiencing on a regular basis that an automation solution might be able to solve for your collections department.
1. Is Your Organization Understaffed and overworked?
Problem - Your collections department may be feeling the lingering effects of the last recession and the impact of layoffs and tight budgets.
Solution - A staffing crunch is probably the most obvious issue one can solve with automation.
Automation will help lower operational costs while preserving your ability to stay on top of collections tasks and other AR activities, so you can actually boost productivity while reducing costs. Even though your staffing levels are adequate, it's possible that you're still using old outdated methods that automation could greatly enhance. Eventually, you'll be able to accomplish more and boost employee productivity without having to allocate more money for new hires.
2. Why fix a workflow which works?
Problems - Your organization should strive for growth which requires more than just your standard project management framework. There will always be credit and collection tasks that your automated accounting system can't handle, even if you've only dipped your toe into automation's shallow end and it handles AR.
Solutions - Modern collection software uses project management systems to seamlessly integrate everything you're already doing into a single, comprehensive solution. The software updates automatically and manage your workflow for you rather than posting your follow-up tasks on an Outlook calendar. The same can be said for taking call notes on a spreadsheet, which is a time-consuming task, especially if you frequently have to copy those notes to different systems or spreadsheets because an account issue still exists.
3. There is Rise in Delinquencies and Bad Debts
Problems - When your efforts to collect money don't produce the desired results, your current system is inefficient. Missed revenue opportunities will be the result of this sub-standard efficiency.
Solutions - Through streamlined processes, automated prioritization promotes better collection results while saving time. When your company uses automation software to its full potential, it will be able to identify strategies that add value and reduce the risk of non-performing obligations. In the same vein, struggling to accurately assess portfolio risk is another indication you should automate. Before they worsen, an automated system will flag potential or emerging issues.
4. Profits Being Impacted by Outside Pressure Building Over Time -
Problems - Gramm-Leach-Bliley and other regulatory requirements have increased regulation which has made things more difficult and added administrative burdens. Costs associated with compliance monitoring rise as well.
Solutions - Efficient automation can help you cut down on the amount of labor required to comply by doing the manual work on your behalf.
Conclusion -
You might not be aware of how far automation software has come, offering a comprehensive approach to credit and collections that can be scaled to fit a variety of corporate scenarios. Your business can attract more clients by providing automated solutions for invoice delivery, payments, and financing. These kinds of capabilities enable your business to add more clients and process more invoices while maintaining profitability and competitiveness.
