A: Great question! Businesses of all sizes operate with a lean, skilled staff that handles a good deal of client interactions in addition to their administrative work load. As a result, your staff are faced with daily challenges – choosing the best way to manage their time while handling the critical tasks that must be done each day to keep your company running. Additionally, you as business leaders are immersed in driving forward operations and growth. Meanwhile, your untouched A/R is becoming a serious issue. The best way to handle this is simply to outsource it to a trusted third party. Why?
- It keeps your staff focused on your important operations and client interactions. You hired experts in their chosen fields – consider the same for your A/R.
- A third party is trained in the latest laws and strategies to best return your funds. If your admin team is not versed in the laws as they change, their contacts to your clients could be cause for litigation.
- As the leader of your company, you can concentrate your efforts on core company initiatives. Many of our clients admit to being better at their company focus than business management – and that’s ok! Find a trusted source for your cash flow management and rest easy.
Q: TekCollect, I’m worried about upsetting the clients who are slow to pay, but some of them are beginning to rack up tabs with my company. Advice? – Feeling Awkward
A: Often times, your slow paying clients pose more than just a time drain for you and your team – approaching them about money while maintaining rapport can be anxiety-inducing! Client relationships are one of the most important facets of your business, so retaining a client – even through a debt situation – is critical. Luckily, there are now programs available that focus on early intervention, meaning your clients are contacted within 30-60 days after becoming delinquent. Communication is friendly and customer service-focused, giving your clients a chance to honor their financial obligation without feeling hassled or ashamed. Most importantly, it takes you out of the collection business – clients are paying their bills earlier, remaining productive members of your roster, and you’re recapturing your deserved income.
Q: Aren’t write offs the cost of doing business? I never looked at how much new business I need to bring in to offset my losses – but perhaps I should be? – Write Or Wrong
A: Our clients are discovering that write offs can become a thing of the past – with the right cash flow management partner. Let’s put it this way: Say you were to write off $20,000 .00 for 2015. In order to recuperate that loss, you would need to bring in $200,000.00 of additional business – just to break even! Many organizations do not realize the true cost of a write off in terms of overall business health. Now, what if - instead of writing off that original sum, you invest a small percentage of that into an A/R management system that could bring in more than 60% of that income for a fee that typically costs less than 5%? There are programs available that fit businesses of every size, with easy to use software and real time reporting. Business owners who use our services are reporting a 75% boost in their A/R, with the majority of their funds collected within 90 days of account placement. So before you get to the end of your calendar year, start making plans to re-capture your lost income, rather than write it off. Your business, your staff, and your bottom line will thank you for it.
TekCollect provides the most advanced accounts receivable, collections, and client retention services available. To learn more about us, visit our website and follow us on Facebook and Twitter.