I’ve been helping businesses for almost 20 years with managing their finances and debt recovery. One thing I have learned, which is common to most businesses, is that every individual working within the Accounts Receivable Department strives for one ideal – efficient invoicing and cash collection with minimum amount of hassle. Chasing payment for outstanding invoices requires a high degree of patience and energy; it’s not personal but an unfortunate part of doing business.
A challenge to businesses
Obviously business owners look to improve operations and are keen to innovate where possible, be that by implementing a new system or improving a process. Trying to find the best system to reduce credit control efforts and improve cash management can be challenging given the rapid changes in technology and the many schools of thought on what is considered the optimal solution. Introducing a new system to aid the debt recovery function brings change and often inherent problems. In the absence of such change these problems are circumvented by dedicated finance people through manual intervention, long hours, tedious reconciliation and much determination.
How viable are new systems?
Most accounts receivable staff are too busy managing and operating their current systems and practices to take a step back to review activity and related operational cost and to evaluate how change could bring improvements. Be it perception or reality, with the introduction of new systems, people often feel that they have to adapt their existing practices to suit the new system as opposed to the system adding value to existing operations and practices, the general feeling is that one problem is solved while another is created. Unless the introduction of a new system is complementary to existing practices and delivers real benefit, then it is difficult to support such change.
Debt recovery & innovation
Innovating for the sake of innovation is not something any business will entertain and rightly so, this is not a case of keeping up with the Joneses given the cost and risks involved. However, with the advances of SaaS technology and acceptance of electronic communications can businesses afford to continue to operate the Accounts Receivable function without at least an eye on the benefits innovation can deliver?
How can Debapay help you?
The Debapay system is now working with trial customers to validate our approach in assisting their business to aid debt recovery and improve cash management. Please feel free to contact us to learn more about how we aim to help.