The largest single asset of an architecture and engineering firm is usually its accounts receivable, yet collecting A/R is often overlooked as a key way to improve financial performance, specifically cash flow.
The American Institute of Architects recommends collecting outstanding invoices within 60 days as a financial management best practice. But if you’re like the average firm, your collection period is closer to 73 days, according to the 2016 Deltek Clarity Architecture and Engineering Industry Study.
It doesn’t have to be. We’ve taken the dirty work out of collections with an automated add-on product for Deltek Vision®. Our EleVia A/R Management & Collections software is being used by leading A&E firms, including HKS and CallisonRTKL, to easily implement three A/R management best practices:
Use Metrics to Monitor Results
We created a simple dashboard in EleVia A/R Management & Collections that lets you quickly see key performance indicators (KPIs), including:
Develop a Collections Strategy
The insights you gain from the EleVia A/R Management & Collections dashboard allow you to develop a targeted collections strategy. You may want to set up distinct strategies for different client categories, such as government vs. private sector or national vs. small accounts. CallisonRTKL used our software to segment communications based on number of days past due, and was able to reduce receivables over 60 days by 15%.
Automate Repetitive Functions
Finance experts recommend automating repetitive collections functions to improve efficiency, save staff time and minimize mistakes. With EleVia A/R Management & Collections, you can create branded email and Microsoft® Word templates, merge them with customer data from Deltek Vision, and set distribution based on predefined parameters, such as amount owed or length of nonpayment.
To learn more about our Collections software, contact me at email@example.com or 612-326-3909.