With cloud credit control software establishing itself as the new normal for modern finance functions, Brad Ewin from Chaser breaks down exactly what it is and what it can do for your business.
Cutting your business free from the time and money sink that is the late payment problem is a journey of four steps.
First, is internalising how prevalent and dangerous the late payment problem really is. It’s human nature to turn a blind eye to scary statistics, instinctively thinking “that’ll never be me”. Don’t fall prey to that line of thought. It’s not your job to be blindly confident, it’s your job to be risk-savvy.
The second step is realising that your business’ credit control function directly and significantly impacts your susceptibility to late payment, and understanding that prioritising it is important. If credit control is low on your finance team’s priorities, late payment will swarm you and your cash flow will plummet.
The final step is equipping your finance team with the best tools to empower the processes you’ve implemented.
The third step is learning best practice credit control processes and successfully implementing them in your business. The foundations of that were covered off in AccountingWEB’s six-part Credit control catch up series. Continued learning should be part of your regular routine - plenty of great online resources are available to facilitate that.
The final step is equipping your finance team with the best tools to empower the processes you’ve implemented. After all, if credit control is a line item on at least one person’s agenda, you’re assigning a cost to it. Maximise your return on credit control investment with cloud credit control software.
What is cloud credit control software?
In short, cloud credit control software encompasses applications that integrate with your cloud accounting system to help you best manage your credit control function.
Once seen as an optional add-on for businesses to give themselves a competitive advantage, it’s now solidified as the table stakes for a modern finance function.
But what specifically does cloud credit control software do for your business?
Traditionally, credit control relies heavily on human input. Sending emails, making phone calls, writing letters, jotting down notes. The success of your credit control function was once solely dependent on the efficiency, and amount, of people you had to carry out the tasks.
With cloud credit control software, the human input to your credit control function gains a vastly amplified output. Here at Chaser, we’ve seen that nearly 80% of invoices are successfully collected by email chasing alone. With email automation able to be done to a very high standard today, there’s no reason not to take 80% of the work off your finance team’s plate so they can focus on the 20% of cases where they’re needed.
With cloud credit control software, the human input to your credit control function gains a vastly amplified output.
Cloud credit control software offers the ability to completely customise email templates and sending schedules so that your automated email chasers look like they were hand-typed by your credit controllers.
This gives them a far greater chance of being opened and engaged with compared to automated reminder systems. The control over sending time also allows you to align it with your bank reconciliation and ordinary emailing hours. This lets your business reap the time-saving benefits without the red flag of automation being waved in your customers’ faces.
In the days of credit control past, every credit control function was managed via an array of messy, sluggish, and uncontrolled spreadsheets.
Keeping these up to date and accurate was a very difficult task. With hundreds of emails and phone calls taking place, credit controllers could easily be too busy, or simply forget, to log them. Factoring in data entry mistakes and accidental deletion, there is no reason that finance teams today should still be managing their credit control function like this.
Cloud credit control software automates the logging of emails, much like any modern CRM. When you do make phone calls or need to jot down notes, cloud credit control software makes their input smooth and easy, minimising or eliminating issues with recency and accuracy.
As the hub of your credit control function, cloud credit control software offers a centralised, consolidated history of invoice and customer communications. This empowers finance teams with an always-up-to-date, single-source-of-truth view of the credit control function at any time. And, if legal matters ever arise, all the info is easily available and accurate.
In today’s age of data, many businesses are overwhelmed with how much they can see and record. Simply recording everything without drawing any insight from it is only incrementally better than not recording anything at all. The power of data is only realised through the learnings you can make from it, and with credit control, it’s no different.
In the old days, you’d be reliant on the Excel whiz of the team, sinking in the time to produce valuable graphs and metrics.
With cloud credit control software, intelligent insights are automatically generated for you. Built-in reports help identify good-payers from bad-payers, inform who to grant credit to, and identify the best chasing approach for each customer, empowering credit control meetings and ultimately boosting your cash flow.
With competition increasing in the market, cloud credit control software is developing at a lightning pace. Free trials are commonplace and coupled with offerings of dedicated customer success teams, barriers to both entry and success are low. SaaS pricing models also mean that, unlike enterprise software deals of the past, you minimise your financial risk and remain agile enough to switch solutions in future with relative ease.
Catch your finance team up to the pack and investigate cloud credit control software for your business today.