How automation improves debt recovery rate for accounts receivable

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How does automation improve the recovery rate?

Your company may choose an outsourced solution to help you manage collections or handle your own bad debt processes in-house. Either way, automating debt recovery can make all the difference in the reach we can have over accounts receivable. 
Find out more about accounts receivable automation and debt recovery below. 
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What is accounts receivable automation? 

There are many reasons why payment of an account receivable may be delayed. A customer may not receive a paper invoice or may have forgotten the due date. 
Solve these problems with accounts receivable automation. Automated solutions can optimize your accounts receivable. Automated debt recovery processes ensure that nothing is ever lost. You can use artificial intelligence (AI) to: 
  • Automate billing
  • SMS text or email reminders
  • Self-service chatbots
  • Automated calling combined with IVR voice response systems
  • Virtual assistant services
  • Automated cross channel tracking
A comprehensive debt recovery automation solution can ensure that payments are received on time. But it also leads to many more benefits. Transitioning from manual to automated processes allows you to continue to manage your debt recovery without relying on an outside agency. 
There are many debt recovery automations for businesses. for businesses. Not only will you have streamlined operations, but your team members will see many benefits from using automation.
These include: 
  • Increased productivity
  • Updated borrower information 
  • Cost effectiveness
  • A more controlled collection process
  • Improved efficiency
  • Improved performance monitoring
  • Elimination of manual tasks and processes 
Learn more about each of these benefits and how each can lead to operational improvements for your company. 
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Increased productivity

Automation can increase employee increase employee productivity. Your debt collection team has a lot to do when collecting past due accounts. With automation, many of these processes and tasks can be performed while collectors focus on other tasks.
You can also automate invoicing and payment reminders. This saves a lot of time for those who manage accounts receivable. And with automation, you make sure nothing gets lost or forgotten.
Mundane administrative tasks will not consume hours of your employees' time with automation.

Updated borrower information 

Identity theft is a very common occurrence in today's world. Having that information readily available is beneficial to businesses.
And it greatly improves recovery rates by having the correct and up-to-date information. 

Cost savings and greater reach

Automation increases the consistency of payments, thereby improving cash flow. Improved cash flow leads to greater liquidity and flexibility for business owners. 
You can collect more previously uncollectible payments. Automatic reminders, communications and late payment notifications are done through an automated system and artificial intelligence. You will save hours of time and costs with an automated solution.  
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A more controlled collection process

Past due accounts can use a lot of resources when you are trying to recover your money. With an automated process, you don't have to hire more employees to manage the workload. 
And with an automated system, you can enter controls and processes to ensure consistency with each account. An A.I.-driven solution also improves accuracy and reduces the risk of human error. 
Eliminating the need for an outside agency to help with collections empowers your business. 
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    Collection-process-sybven-dana-2022.img

    Improved efficiency

    Improved efficiency is inevitable with automation. Everything is optimized and most functions are completed within the system, so the entire department becomes more efficient. 

    Improved performance monitoring

    Measuring key performance indicators of your team members will be easier than ever with automation. Performance is typically measured by days outstanding, profit and promise-to-pay rates. The system documents and tracks all relevant information with an automated solution. 

    Eliminate manual tasks and processes

    Automation eliminates manual and tedious tasks and processes that take time away from more important operations. Waiting for documents or reports can delay many other operations.
    However, with automation, there's no waiting. Reports and metrics are readily available. Reminders or follow-up letters can be sent automatically according to a preconfigured schedule. Employees can focus on more valuable tasks with automated debt recovery solutions. 

    Fewer complex decisions to make

    In the past, your team members made decisions on every account. With automation, you have data and information readily available, so decisions are not dependent on individuals. 
    Data-driven decision making leads to more consistent and focused practices. There will be no gray area because the metrics are there for leaders. Data will also help determine which collectors should manage which accounts. 

    Should you outsource debt recovery services? 

    Working with an outsourced agency to develop your automated debt collection process can save your company a lot of time and effort. When you have an outside agency guiding you on how to set up the most efficient and effective processes, your company has more time to focus on revenue-generating operations. 
    A dedicated company specializing in debt recovery automation will be able to quickly set up a digital collections operation for your company. This means you could be improving the scope of your debt recovery efforts in no time! 
    Ultimately, it depends on what your business needs are whether or not you should outsource the service. Automation leads to better debt recovery rates, so it's really a question of how you do it and not whether you should. 
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    success-sybven-process-transformation-2022.img

    How to know if I should handle collections in-house or with outsourcing 

    You should thoroughly research and test any software you want to implement in your company. When choosing a collections outsourcing solution, you should carefully weigh what options they offer and what your business needs are. 

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