Tips to improve the collection process in companies
Problems in the collection process in companies and what this causes in cash flow is usually one of the main reasons why a company can fail and is one of the great concerns in organizations around the world.
Accounts receivable are an important part of finances, and the amount of available cash flow will depend on their correct management.
How to improve the collection process in companies?
Collection is a formal and necessary process for the operation of a company, this can be a weak point if it is not carried out correctly. It is said that the sale process is not over until the respective collection is made; There are several points to consider so that the entire process is carried out efficiently and the errors and resources that we allocate to execute it are reduced as much as possible.
Here are some tips to improve the collection process:
- Internal organization and collection strategy.
Internally, a company must always prioritize the organization, communication and planning of both the team and the work to be done, which will allow it to be more efficient.
In the collection management it is necessary to be clear about the process that a sale has, from the issuance of the invoice to the receipt of payment, they must be contemplated within the planned strategy to carry out the collection, define policies, techniques and rigorous criteria that allow streamline processes.
The way in which it is communicated and followed up has a direct correlation with the percentage of portfolio defaults. Why? Mainly because we are having an impact on customer perception. If the client has several suppliers to pay, they will surely prioritize those that have received emails alerting them to the expiration date, as opposed to those that do not send anything until the days in arrears begin.
Defining the customer communication strategy well, adopting tools that allow communications to be automated and personalized, and using the appropriate channels to find customers will improve the probability of obtaining payments.
- Collection reports based on indicators or KPI’s.
In the accounting area of a company, something that is of vital importance for the health and growth of a business is measurement. Being able to have reports on the steps taken, the income achieved thanks to the collection processes generate growth indicators.
There is no doubt, collections are an important part of your company’s financial strategy, which is why BPONE through PROFITLINE-BPO ECUADOR S.A. has an expert team in collections that will provide you with solutions specially designed to manage and administer your client portfolio.
By Andrea Morales, Comercial Portfolio Collection Executive, PROFITLINE-BPO ECUADOR S.A.
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