A/R collections is a dirty word at most A&E firms. No one likes having to bug clients to pay their bills. Instead of ignoring aged receivables — which can become a black hole that zaps much-needed cash flow — consider the easy way to get paid: use collections software. Our software, EleVia A/R Management & Collections, not only integrates seamlessly with Deltek Vision, it also allows you to implement these expert tips for improving your A/R Collections.
Create an A/R Aging Report
To spot potential collection problems early and focus your collection efforts more efficiently, you need to see the current payment status of all your accounts receivable. With EleVia A/R Management & Collections software, you get a dashboard that shows your A/R aging firm-wide, and allows you to drill down to see payment status by client and project.
The dashboard goes a step further by displaying your A/R collections performance against top A/R metrics, including Days Sales Outstanding (DSO) and Collection Effectiveness Index (CEI). (See our related blog post: “The Important A/R Metrics You May Be Missing.”)
Be Proactive in Your Collections Efforts
Experts recommend that you contact the client’s accounting department a few days before payment is due to make sure they have everything needed to make payment. That’s easy to do with EleVia A/R Management & Collections software. It allows you to set up a strategy to email clients X days prior to payment due, using a template with wording that asks if they have all the documentation they need. (FYI: If you have clients that require extension documentation with their invoices, check out this blog post: “Final Invoice Documentation: No Assembly Required.”)
Move Fast on Past-due Receivables
Studies show that the longer receivables go uncollected, the less likely they are to ever be collected, either partially or in full. You should contact clients the first day that payment is late with a gentle reminder that payment is now past due. Firmer communications become necessary as time goes on. The beauty of EleVia A/R Management & Collections software is that it allows you to set up strategies and communications by segment. Top-ranking architecture firm CallisonRTKL used our software to set up a series of escalation communications based on number of days past due. It helped them reduce receivables over 60 days by 15%. (Learn more about how they did it in the CallisonRTKL Client Success.)
To see a quick, 30-minute overview of our A/R software and how it integrates with Deltek Vision, register for our upcoming webinar How to Get Paid with Minimal Effort: EleVia A/R Management & Collections Software on Wednesday, April 13, at 11 a.m. CT. If you can’t attend, register anyway, and we’ll send you a recording.
To learn more about EleVia A/R Management & Collections, contact me at email@example.com or 612-508-5884.