Debtors Manager is a debtor management system suitable for any business in any industry seeking to optimise the debtor collection process. Debtors Manager debt collection software has been designed to instantly implement tracking and control in your customers’ debtors collection department. Unlike other products which tend to focus on the macro level, this is a hands-on practical system that automates the daily control of the debtor’s book.
Management seldom have time to focus on debtors. Meeting with staff and going through the age analysis will show the amounts outstanding, but not the reasons why the amounts are outstanding, nor will it show you the expected amounts to be collected.
Collectors will try to track payment progress and the reasons for late or non-payment, and may write down cryptic clues on the age analysis which only they can interpret. If they are recording the information on a spreadsheet, they may save that spreadsheet in a place that is only known to themselves.
There is no central place for management to extract the reasons behind the late payments, and management therefore have to rely on their collectors to share the information when requested.
Tracking debtors trends to establish what the common reasons are for late payment becomes difficult, and cash flow planning is then based on general payment trends rather than actual customer promises to pay.
Knowing the reasons for late or non-payment is important, as is tracking the agreed outcome and ensuring that arranged terms are adhered to. If a debtor is permitted to delay payment repeatedly, it becomes increasingly difficult to collect the amounts due.
Collectors may not have an adequate manual system of their own, and can lose track of when a debtor promised to pay, or what actions they needed to take in order to collect the money, making it difficult for management to generate timeous and accurate cash flow forecasts that can be relied upon.
Debtors Manager can help businesses overcome these problems
Debtors Manager is powerful, and provides businesses with an easy to use toolset to improve debt collection processes.
Debtors Manager provides instant visibility across all outstanding invoices, making it easy to determine:
- Why it is outstanding
- When it will be paid
- What has been done to date
- What still needs to be done
- Which sales person the invoice belongs to
Users of Evolution’s Debtors Manager consistently say that the visibility provided by the Summarised Contact Report has saved them hours and hours of time and frustration.
This report displays the age analysis complete with the last contact note made, date of contact, and the total value of Promises to Pay.
Debtors Manager is designed help the debtors department become a vital communication centre – this is based on the premise that outstanding invoices are not the sole responsibility of the debtors department. Debtors Manager allows you to pinpoint the problem areas within your own company, and assign responsibility to the appropriate people within your organisation.
Debtors Manager will change the behaviour of collectors, debtors and possibly even management
Collectors will be able to confidently provide debtors with accurate reconciliations, contact reports, as well as a list of outstanding invoices immediately, and not have to first compile a specific report for each debtor.
The visibility that management have into collectors’ productivity encourages healthy competition to get outstanding debts settled as quickly as possible.
Your customers will become aware of your professional management and communication systems, your professional reports will assist both them and you in managing their account with you, and they will never be able to take advantage of bad communication.
Managements’ increased visibility into the efficiency of the department will allow them to alter business processes for more efficient outputs. A competent debtors department will be able to quickly establish common trends for non-payment, and management will have the ability to make informed decisions based on categorised reasons for non-payment of outstanding invoices. This data is easily saved by the debtors department as part of their usual collections processes.
You will be able to see how many calls the collectors have made, and what the outcomes of those calls have been. In addition to this, you will also have insight into the content of those calls.
The collector will record the reasons for late or non-payment, the actions to be taken, and detail the due dates or action dates for follow-up. Daily reports will show collectors what they still need to do in order to collect the funds in cases where debtors have missed their promise to pay dates, as well as a full and complete history of previous communications with the customer.
When contact is made with a client, the expected outcome is either a promise to pay amount and date, or a reason for the delayed payment. Debtors Manager makes it easy to capture this information, and then renders this data into valuable business intelligence.
Collectors can then run accurate cash flow reports, based on actual promises to pay. A cash flow forecast will become instantly available for any given date range. Management will be able to get an accurate picture of exactly how much money is coming in at any given time, and if a target has been missed, the reasons for that can be easily tracked and identified.
How does Sage Evolution Debtors Manager work?
Working with Debtors Manager is really easy. Collectors will work directly from the Debtors Manager dynamic age analysis and record information in just two places.
Your collection activities are automatically in sync with the underlying accounting records. Promises to Pay are automatically updated when payment has been received.
By clicking on the amount in the aged period, the collector will see all invoices that make up the balance.
Contact Notes allow users to store the details of the conversation with the debtor.
Per invoice, or per aged amount, the collector then records the information such as:
- The Promise to Pay date.
- The Reason Code for the customer not paying. Reason codes are customisable.
- Expected amount and date to be collected.
- Action to be taken. Action are customisable
- Set a Call Back date.
Automated payment reminders can be sent via email or sms. Different aging buckets can have customisable templates attached to the list of overdue invoices that is emailed to the customers.
The email functionality and format of the emails has proven to be an exceptionally effective way of getting paid, especially on those hard to collect amounts that are long overdue. After that, the payment reminder function helps maintain the debtors book closer to agreed credit terms.
Key Benefits Summarised
Visibility – Management
Instead of looking at the 30, 60 or 90 days amounts on the Age Analysis, you can now see the reasons behind why the money is outstanding.
Reconciliations are instantly available and easily emailed to debtors, providing more security for you and for your debtor.
Reduce the risk of write-off
As you are able to track trends for non-payment such as service level issues; missing POD’s etc, action can be taken to correct the situation in order to collect the moneys due.
All outstanding invoices can be properly tracked, so the risk of overlooking a debtor for extended period is vastly reduced. The email function is especially effective when it comes to sending payment reminders out for small amounts that are overdue in the 90 plus aging buckets. These amounts often add up to significant amounts that end up being written off.
Introduces a collection methodology
Business processes can be introduced and monitored, to see if they are being followed.
Because of the visibility, management can gauge what is or is not working and improve processes.
Cash flow Forecasts
Management can set targets for collections, and monitor the collections against those target. There is an age analysis movement report that makes this easy to do.
The cash flow Forecasts show exactly how much money is coming in over the forthcoming weeks or months.
The productivity of your collections department can be increased, which saves overhead costs:
- Instead of having a collector calling for each individual invoice, the automatic email feature and sms function can send payment reminders of all outstanding invoices to the debtors.
- As the entire process of collection is recorded, there is very little chance of unnecessary repetitive work.
- Collectors don’t need to manually do reconciliations for the debtors, as will be readily available in an easy to understand format.
- Performance Incentives can be implemented as you will be enabled to monitor and measure productivity.