Sharpen Your Pencil
February 19, 2016 at 12:06 AM
With everything a business has to do to keep the doors open, it's natural to let some things run on auto-pilot. But the world changes and that means businesses have to review their procedures and policies, sharpen the pencil, and plan for improvement.
Professional Collection Service is a business that is not much different than yours. We are busy. We are also bound by many compliance regulations, and these regulations change! For this reason, we are diligent in reviewing our processes and office procedures. Here are processes we have implemented and you might find valuable and effective in your business and accounts receivable management.
- Thorough training of employees...PCS has implemented a training calendar to keep our staff current with compliance and privacy regulations. We also have a library of training materials for review. Do you have a training plan? Those employees who work with accounts receivables may benefit from a review of how to handle the past due and collection processes.
- Checklists and task tracking...The collection process is detailed and time sensitive. We have automated processes but also use task checklists to verify every step has been completed. Do you have a checklist of what info is needed when submitting an account for collections? There is some information that can greatly improve recovery such as correct legal name, current address and phone and social security number.
- Perform customer/client reviews...We periodically review our clients’ data to make sure we have all paperwork up-to-date are providing adequate feedback on submissions and good customer service. Do you review data of accounts receivables and see a pattern for those that are slow to pay or delinquent? Is there something you could do to improve?
- Review documents...Compliance and consistency of documents we use as standard business practice (fax cover sheets stating confidentiality, for example) are reviewed on a regular basis. Have you reviewed your documents and forms, such as invoices and statements and determined that they are up-to-date with your current business policies? If a customer is confused by discrepancies, they may delay paying.
- Review your use of technology...As a collection agency, PCS uses various software to automate many of our processes. In order to be compliant, serve our clients and make sure all runs smoothly, we review frequently. We also review our security regarding electronic data. This is a process that every business should implement. Any “snafus” in email, accounting software, data entry, etc. can affect your bottom line. And a security breach can make doing business very difficult.
Professional Collection Service is your partner in accounts receivable management. If you would like to review our processes or have questions of what you can do to improve your accounts receivable management – we are here to help!