Remote AP Staff Can Trip Up the Most Stringent Collection Efforts

Recent polls show that 58 percent of workers now have remote options and 87 percent prefer them. With figures like that, it's unlikely that the all-hands-on-deck attendance of so many years past will return anytime soon. And, while ever-improving electronics are supposed to be overcoming communications problems, the fact is that remote workers can be much harder to reach and work with. That's slowing down collections.

As Credit Collections Specialist for GMM Pfaudler US Inc., Natalie Simmons runs a tight ship. She's often on the phone within days after an account misses a payment due date. And, with the authority to hold orders, she has temporarily shut down various volume projects for late payers. Recently, however, her best efforts have been stymied by gummed-up customer communications.

“If I'm not getting a response from AP after multiple requests, or if AP gets back to me saying the buyer/requester has declined the invoice and we need to reach out to them, I'll call the buyer/requester,” she says. “And a lot of times we reach out to them when we have advanced invoices because they need to approve them.”

Fewer Employees

“But often AP doesn't get back in touch with me where I'm emailing the Inquiry Department or I'm reaching out on their portal. I'm finding this a lot more after the pandemic. There are fewer employees in the office and the department.”

“These problems went on before the pandemic, but they've become more problematic. Replacing experienced people working at home with inexperienced people working in the office—people who might quit within a few months—doesn't improve things.”

She has found that very few have returned to their offices. “I can tell when I'm talking with someone if they are working from home,” she continues. “It's the background sounds--the children, the dogs barking. The atmosphere is totally different.”

“You call offices and get their message that they're checking their voicemail, but you don't get many responses because they aren't checking very often.”

Projects Resume

Customers still want their products, of course. Big projects began before the pandemic resumed. So, she finds it more helpful to reach out to the buyer/requester and to involve the salespeople who are part of that order, getting them to communicate with their contact person as well.

“Often I'll reach out to the salesperson first to find out who the contact person is when I'm not getting a response from AP.” She tells them, “We really need to get this paid, or the shipment isn't released.”

With large orders, advanced payments are required. Projects run into hundreds of thousands and millions of dollars. They require a series of 30 percent payments-- sometimes 40 percent--according to whatever the project outline is.

“We really push for these in major projects because we need to be certain the funds are coming in,” she says. “There was one customer that one of our managers had to have weekly meetings with the buyer to have their AP get these payments submitted. The installation had begun, and nothing was being released. They got on board, and they were cooperative on making sure payments were submitted.”

Legitimate Reasons?

“Customers give many reasons for failing to make agreed payments, not always legitimate. ‘We didn't get the invoice.' But we have evidence they received it. We go back to their AP, showing that we sent the invoice by email: ‘Here's the proof it was sent.'”

Customers' APs located in foreign countries—or using foreign payment portals—are another growing issue. Phoning or even emailing them is difficult. She emails them first thing in the morning knowing that sooner or later they won't be in the office due to the time difference.

“More and more they are using online tracking,” she says. “You send an email, and they reply, ‘Go through our online tracking', which shows what has been received, the payment date, and what has been processed
or is in the hands of an approver. Then she can go back and say, “This is what was shown, but it's late, and we need an update.” She goes to the salesperson, and, if she gets a “not acceptable answer”, she places the account on hold.

“Prior to the pandemic people were more likely to get back in touch with you,” she sums up. “As stated, before there were more people in the office and in accounting. Now there are fewer in-office employees, which means people working from home have a heavier workload and may not be able to keep up. It would be so much better with more people in the office, that would clear up a lot of things. But right now, with more working at home, this will probably be the future.”

Contact Information:
Phone: 585-464-5671
Email: natalie.simmons@pfaudler.com