Is payment collections starting to become an issue for your business that you’re now considering an automated collections software? Yet, it’s still not THAT big of an issue so you’re still thinking whether it’s really worth getting one?
If your answer is yes, keep reading because we’ve identified the 6 tell-tale signs that you need an automated collection software for your business.
What is an Automated Collections Software?
An automated collections software is a tool that helps your business manage the collections process of a transaction which includes payment, follow-ups, and even reporting and compliance. It automates tasks you usually do by yourself such as sending reminders, tracking messages, and generating reports to ensure that you get paid on time.
If you’ve already done your research, you will find that many automated collections softwares have similar features, such as automated invoicing, reminders, customizable workflows, payment tracking, integration with other accounting softwares, and comprehensive reporting. Regardless of what features the boast, ultimately an automated collections software should help you get paid easier and faster.
Why is an Efficient and Automated Collections Important?
We believe that automated collections lead to efficient collections which get you paid on time, every time. With that in mind, we’ve listed some reasons why it is important for your business:
- You get paid on time: The most important thing that an automated collections software can give you is faster payments. An automated collections software will ensure that reminders and follow-ups are sent out on schedule for your customers, reducing the chances of late payments.
- You don’t spend so much time on menial tasks: Nobody likes doing manual and repetitive collections processes because they are time-consuming and prone to errors. An automated collections software makes this all go away by handling routine tasks such as generating invoices and sending payment reminders, allowing you to focus on things that matter more.
- You develop good customer relationships: Ever got an email from someone bugging you for the payment? Kind of annoying, right? That’s exactly what your customers feel whenever you personally remind them of their payments. The great thing about having automated collections software is that customers are informed of their due dates and payments without feeling pressured. In our clients’ experience, this leads to better customer satisfaction and retention.
- You get to plan your finances better: With a clear and error-free view of the money you have collected, you will be able to accurately forecast the state of your finances. An automated collections software makes this possible by providing you real-time insights into your billed and collected payments, enabling you to make informed decisions and plan for future financial needs.
6 Signs Your Business Needs Automated Collections Software
So here’s the fun part! Now that you know what an automated collections software is and why you need it for your business, here are the 6 most common things found among businesses that ended up getting Mochi’s automated billing and collections platform.
- Overrun with overdues: If you are getting more and more overdue invoices than you can keep up with, chances are you need to start automating it. Overdue invoices are dangerously close to becoming forgotten invoices, which is a total loss for you and your business so getting an automated collections software will be in your best interest at this point.
- Tracking payments is becoming impossible: When you start billing 10 different clients on 10 different due dates, manual tracking becomes impossible. Sure you can have a spreadsheet to track if an invoice has already been paid or you have set up alerts on your email whenever a payment comes in (if that’s at all possible)... but imagine how much easier it will be if payment tracking is automated?
- Wasting time on follow-ups: Have you ever spent more than 10 minutes crafting the perfect email to remind your client about their payment without sounding annoying, condescending, or desperate? If your answer is yes, then you really need to get an automated collections software to handle this for you.
- Want to make better financial projections: Knowledge indeed is power. With more information on when payments usually come, how much you typically get, and all other relevant information, you will be able to make better financial decisions for your business. If you are already looking into this, you have to get an automated collections software.
- Cash flow problems because of late payments: For cash-strapped small businesses, payment delayed is almost synonymous to payment denied. When you already see that you are having some cash flow problems that affect you paying salaries, replenishing your inventories, all because there are invoices that are still up in the air… it’s time to get an automated collections software.
- More customers, more money, more problems: Getting more customers is not all fun and games because that also means tracking and collecting more invoices. If your business is growing faster than you can keep up with, we highly suggest getting an automated collections software to help manage your growing pains.
Still on the fence about getting an automated collections software?
An automated collections software is a powerful tool your business. As a billing and collections platform, Mochi understands that this leap may be full of doubts, which is why we are offering our platform for FREE for 60-days upon sign up! This allows you to explore the features and see if our automated collections feature is the right one for you.
