Why A/R Analytics Matter, by Mark Wilson

In today’s business world, virtually every department in every company uses analytics to create efficiencies, make better decisions, and improve results. For example, a sales manager is no longer basing the sales team’s success solely on the number of sales made—that person is utilizing technology that looks at a number of metrics beyond those final sales. Why? For multiple reasons. Analytics can provide any business area with information that helps them stay competitive, streamline processes, hold their team accountable, and keep their customers satisfied.

Credit and collections teams should be utilizing this same type of technology to track metrics relating to their business area, however two obstacles often arise: (1) many credit professionals don’t know this technology even exists, and (2) those that do know it exists assume that implementation is an expensive and grueling process that requires a lot of IT support.

So, what if you had an easy way to go beyond DSO and track metrics that will transform your company’s A/R into a strategic and value-driven operation? Would you be interested? What metrics would matter? What if there was a free trial of a software that would let you do this so that you could decide if this was a valuable tool?

My company, TermSync, offers a cost-effective accounts receivable software, that is easy to integrate and use. By offering a program exclusive to CMA members, we’d like to make it even easier for you to track important AR metrics. CMA members can use TermSync for FREE until the end of 2015 if you sign up before September 30.

As a Preferred Partner with NACM National, the TermSync team has come to realize how innovative NACM members are and how much they really care about improving their credit and collection processes, especially those in the CMA chapter.

If you’re interested in learning more, join our free webinar on Thursday, September 10, at 9am PST surrounding The 6 Metrics You Should Be Tracking to Guarantee Success. Register here!

Mark Wilson, a former CFO, is the President of TermSync, a cloud-based accounts receivable software company owned by Esker, Inc. Mark will present this topic at his webinar on September 10. Register here.

Using Predictive Analysis to Create Collection Management Strategies, by Christopher Rios

Traditionally, debt collection involved little more than picking up the phone and convincing the debtor why they need to pay for the products/services sooner rather than later. Today, credit and collection professionals are being asked to adopt more sophisticated techniques. One of the newer techniques utilizes predictive analytics to create collection management strategies. Predictive analytics permits creditors to identify at-risk A/R and focuses collection efforts on those customers with the greatest propensity for paying slow. This combination of historical AR data and predictive attributes will allow creditor companies to review and optimize their resource allocation, provide improved customer service, and to accelerate cash inflows. By doing so, creditor companies potentially reduce unnecessary costs across the credit to cash cycle and accelerate payments from high risk customers.

Inevitably, even the best collection strategies fall short at times. An organization’s fail-safe shouldn’t be to write off uncollectible receivables against its bad debt provision and move on. What is sometimes overlooked is the need for and the benefit of having a robust third party process for dealing with debtors that cannot or will not pay. Third party strategies should include bankruptcy administration, pre-litigation, litigation and mediation strategies.

Establishing a solid process that provides prescriptive treatment for dealing with non-paying, financially distressed customers will help creditor companies maximize the benefits of the third party services being provided. Ensuring you’re maximizing your return on investment and increasing the chances of recovering unpaid accounts receivable are two benefits of partnering with the right service provider.

This topic will be covered at the upcoming CreditScape Fall Summit, September 17-18 at the Tropicana in Las Vegas as I lead the discussion on creating a robust third-party collections process. For more information about the conference, visit www.creditscapeconference.com. I hope to see you there.

Christopher Rios is the Group Leader – Finance Operations for Dun & Bradstreet. He will be speaking at the CreditScape Fall Summit, September 17-18, at the Tropicana in Las Vegas.