Collection automation: more efficiency and speed
When every company, entrepreneur, and administrative office has to manage incoming cash flows, they know they have to carry out a series of tedious operations, albeit to the satisfaction of the collection, which are however essential to ensure both the correctness of the procedures and the updating and reliability of the management of company resources. Collection automation, therefore, represents a real relief, the solution to save time to devote to other value-added activities, avoid inaccuracies, and not be left behind as it can happen when, as we will see, everything is done manually.
For the automation of collections, the password is: integration
The simplification of collection management requires two fundamental steps that only a specific and highly evolved company treasury software such as DocFinance can offer: full integration and automation of both processes and activities with the bank, or banks, of reference both of the operations, with the ERP and management systems of companies. Only in this way can an efficient collection automation process be enabled and the company can be said to be “freed” from the burden of managing them.
Thanks to the integration of the software with the banking world, in fact, all payments received from customers are notified almost in real-time by the banks themselves, away also to keep the company promptly and constantly updated on the flow of income and any slowdowns or errors. The direct connection with the management software is instead the key element in the reconciliation of payments received because it allows tracing the various operations carried out and connecting them with the numerous invoices that will then be paid automatically.
The advantages of software that “reconciles you” with the proceeds
While the DocFinance software carries out this series of collection automation operations, the entrepreneur and the administrative office are faced with a mask with the list of collections received and to be accounted for, which they can manage in two different ways, confirming “line per line “or giving the green light to the software to independently reconcile what is reported.
The automation of collections, an activity of crucial importance for the company since it concerns the money that has entered the coffers and those that are still missing, represents a great step forward for companies that have understood how innovating the management of their liquidity can have a strong impact on their competitiveness. Thanks to DocFinance, on the one hand, they can know and monitor all outstanding payments and open invoices right away and even in advance, and on the other hand, they speed up and simplify a procedure such as reconciliation, which is not without its critical issues. When dealing with the large-scale retail trade that simultaneously pays many invoices together with a single bank transfer, for example, it is not trivial to associate the various invoices with the receipts and the procedure, if done manually, is long and complex, and can lead to errors.
DocFinance automates the collections of those who are left behind
Another criticality of the management of collections is that relating to payments from abroad, often made with different names or company names and not always easy to trace back to the company from which one was expected to collect. This is one of the problems solved by DocFinance once it has implemented its treasury software inside the offices of a client active in the tanning industry sector, called every day to manage hundreds of collections, not only from Italy. Left behind for several months, the company has chosen the path of collection automation after numerous hesitations, finally managing to put an order in the movements arriving from over a dozen banks and which had not been accounted for for months. In half a day, the software was configured so that it was possible to retrieve all the flows of the various banks and then verify that each customer found correspondence in the management system and the invoices were paid. Thus started the collection automation procedure, the Credit score company was then able to simply use the mask at its disposal to view the banknotes and what DocFinance did from time to time in absolute transparency.
In addition to freeing the offices from managing hundreds of receipts every day, a tedious and not very stimulating procedure, DocFinance has ensured efficiency in the process because, since everything is done within the software, the chances of error become minimal. Also not indifferent is the more general impact on the competitiveness of the company itself which, having now all the tools to better manage its resources, is able to make more informed and functional business decisions for its growth.
DocFinance customers can then send their suppliers a payment notification in which they indicate the actual deadlines paid with a bank transfer, if the supplier is also a DocFinance customer at the same time, they can import this file and fully automate the collection process.