Making Better Business Decisions Faster with AR Automation · Making Better Business Decisions...
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with AR Automation MARK WILSON Making Better Business Decisions
Transcript of Making Better Business Decisions Faster with AR Automation · Making Better Business Decisions...
with AR Automation
MARK WILSON
Making Better Business Decisions
YOUR SPEAKERMark Wilson is a recovering CPA turned
entrepreneur. After various finance, accounting and operations roles, he founded TermSync in 2010 with the goal of finally bringing accounts
receivable into the 21st century.
#EAUC2016
AGENDA
§ TermSync Introduction
§ Current State of Accounts Receivable
§ TermSync / Esker AR Overview
§ Invoice Delivery
§ Customer Experience
§ Collections Management & Reporting
§ End-‐to-‐End Value of Automation
§ Q&A
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TERMSYNC OVERVIEW
§ An Esker company located in Madison, WI
§ Currently connects over 500,000 businesses through an intuitive, cloud-‐based platform
§ Operates in tandem with existing workflows and systems
§ Can be up and running in less than a week
§ Through TermSync, clients are able to:
– Improve customer relations
– Reduce administrative costs
– Get paid faster
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CURRENT STATE OF ACCOUNTS RECEIVABLE
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STATE OF ACCOUNTS RECEIVABLE
Levels of AutomationHigh: Significant use of automated workflow, near paperless collections follow-‐up, ACH & Credit Card payments, automated invoice reminders & delivery.Medium: Some use of technologies listed in the “high” category, but still very reliant a manual processing operation.Low: Mostly manual, paper-‐based processing operation with limited automation technologies.
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MAINTAINING THE STATUS QUO
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EFFECTS OF MANUAL BILLING & COLLECTIONS
Higher operational costs Lower productivity Increased Days Sales Outstanding
Greater risk for regulatory non-‐compliance
Lengthened dispute resolution
Limited control over post-‐sale collections interactions
No visibility for data tracking or reporting
Decreased customer satisfaction rates
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TERMSYNC/ESKERAR AUTOMATION
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WHERE AR AUTOMATION FITS IN
Automation’s Impact on AR Processes:
Invoice Delivery
Customer Experience
Collections Management
Reporting & Analytics
Invoices and other AR documents can be delivered on-‐demand according
to customer preferences.
Customers can access a convenient online portal to
view invoices, pay their bills, get
support and more.
Managing post-‐sale collections
interactions is made easier with tools such as task escalation, root cause analysis and more.
Critical AR information is made readily
available, including cash flow models, benchmark reports, scorecards and
more.
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TERMSYNC’S ACCOUNTS RECEIVABLE SOLUTION
Invoice Delivery
Electronic Invoice Delivery
Receipt Verification & Exception Processing
Customer Self-‐Service Tools
Online Credit Card & ACH Payments
Collections Management
Automated Payment Reminders
Collection Strategies & Rules
Prioritized Worklist
Log Customer Notes
Deductions Management
Root-‐Cause Analysis
Payment Plans
Task Management
Management Reports
KPI Reports
Actionable Data on Team Performance
Custom Reporting Capabilities
Automated Reports Sent to Management
Customer Portal
Free Online Payments
View Invoice Information
Send Messages & Ask Questions
Apply Credits
Request Supporting Documents
Log Internal Notes
Custom Report Capabilities
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INVOLVE ALL STAKHOLDERS
§ Main Stakeholders:
– Executive Management
– AR Team Members
– Sales Team
– IT Management
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AR PROCESS
CUSTOMER PORTAL
FOLLOW-UPS OTHER DEPARTMENTS
NOTESSEND INVOICE
MANAGEMENT REPORTS
MISC.
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DOCUMENTING YOUR CURRENT PROCESS
§ ACME Company
§ Alice, Credit & Collections Manager
§ AR team of 4
§ ERP = doesn’t matter
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ACME – EXISTING PROCESS
CUSTOMER PORTAL
FOLLOW-UPS OTHER DEPARTMENTS
NOTESSEND INVOICE
MANAGEMENT REPORTS
MISC.
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ACME — EXISTING PROCESS
§ No customer portal
– Customers cannot pay online
– Customers often call or email asking for copies of lost invoices
CUSTOMER PORTAL
FOLLOW-UPS OTHER DEPARTMENTS
NOTESSEND INVOICE
MANAGEMENT REPORTS
MISC.
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ACME + TERMSYNC
§ Securely access the portal 24/7/365
§ Convenience not only in the portal but to get into it
– Through your website (<5%)
– Through payment reminders (>95%)
CUSTOMER PORTAL
FOLLOW-UPS OTHER DEPARTMENTS
NOTESSEND INVOICE
MANAGEMENT REPORTS
MISC.
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ACME + TERMSYNC§ View invoices copies, make payments, apply credits, ask questions, and much more
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ACME — EXISTING PROCESS
§ Manual paper statements sent each month
§ Aging reports downloaded into Excel used to prioritize
– Policy is to reach out to customer 20 days after the due date• In practice it’s more like day 40
– Follow-‐up every 2 weeks until paid– Credit hold placed after 90 days– May send to collections after 150 days
§ No performance management tracking for collectors
CUSTOMER PORTAL
FOLLOW-UPS OTHER DEPARTMENTS
NOTESSEND INVOICE
MANAGEMENT REPORTS
MISC.
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ACME + TERMSYNC
§ Automated yet customized payment reminders (5-‐minute setup time)
– Customized rules for certain customers
– Entry into the portal
§ Escalated email at XX days past due
§ Automated paper letter at XX days
CUSTOMER PORTAL
FOLLOW-UPS OTHER DEPARTMENTS
NOTESSEND INVOICE
MANAGEMENT REPORTS
MISC.
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ACME + TERMSYNC
§ Collection call rules (5-‐minute setup)
– Based on your rules
– Customized by group
– Customized by customer
§ To Do List populated based on your rules
– Manual AR > 30% of time on prioritizing and preparing
§ Performance management accountability
CUSTOMER PORTAL
FOLLOW-UPS OTHER DEPARTMENTS
NOTESSEND INVOICE
MANAGEMENT REPORTS
MISC.
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ACME — EXISTING PROCESS
§ Collection notes stored in Excel
§ Customer contact info stored in ERP
§ Personal Outlook reminders used to follow up on important milestones or promises
CUSTOMER PORTAL
FOLLOW-UPS OTHER DEPARTMENTS
NOTESSEND INVOICE
MANAGEMENT REPORTS
MISC.
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ACME + TERMSYNC
§ Store notes in central location
– Accessible by other team members
– Can be shared with ERP, CRM, or other
§ Track “promise to pays”
§ Create additional tasks
CUSTOMER PORTAL
FOLLOW-UPS OTHER DEPARTMENTS
NOTESSEND INVOICE
MANAGEMENT REPORTS
MISC.
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ACME — EXISTING PROCESS
§ Periodically (estimated 15% of the time) other departments such as Sales need to help resolve an issue or question
– Issue is usually discovered when customer is contacted during collection call (40 days past due or later)
– Collector sends Sales rep an email and saves responses in a folder or copy/pastes info into Excel
§ Sales team also receives a report for any of their accounts that are over 80 days and approaching credit hold
CUSTOMER PORTAL
FOLLOW-UPS OTHER DEPARTMENTS
NOTESSEND INVOICE
MANAGEMENT REPORTS
MISC.
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ACME + TERMSYNC
§ Issues discovered earlier through email reminders & portal
§ Collector assigns Sales Rep a task through TermSync
– Similar to email but more effective
– Process improvement opportunities discovered through data analysis
CUSTOMER PORTAL
FOLLOW-UPS OTHER DEPARTMENTS
NOTESSEND INVOICE
MANAGEMENT REPORTS
MISC.
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ACME + TERMSYNC
§ Automated reports sent to Sales Reps based on any criteria
– You set up recipients, fields included, timing, etc.
§ Notes can be automated to flow into CRM
§ Can also use Tasks and Scheduled Reports to send to third parties, such as collection agencies
CUSTOMER PORTAL
FOLLOW-UPS OTHER DEPARTMENTS
NOTESSEND INVOICE
MANAGEMENT REPORTS
MISC.
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ACME — EXISTING PROCESS
§ Management reviews Aging monthly
– AR team prepares custom reports to present to management
– Focus is on anything over 90 days
§ Metrics tracked
– DSO
– Amount written off as uncollectible
CUSTOMER PORTAL
FOLLOW-UPS OTHER DEPARTMENTS
NOTESSEND INVOICE
MANAGEMENT REPORTS
MISC.
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ACME + TERMSYNC
§ Automated reports sent to management
– No preparation time needed
§ Customize reports on the fly
§ Go beyond DSO
– Key Performance Indicators (KPIs) at company and individual/group levels
• Customer response time• New invoices with email on file• Collection calls made• Root cause analysis
CUSTOMER PORTAL
FOLLOW-UPS OTHER DEPARTMENTS
NOTESSEND INVOICE
MANAGEMENT REPORTS
MISC.
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ACME — EXISTING PROCESS
§ ACME receives about 5-‐10 customer trade requests per week
§ ACME sets up about 5 installment plan arrangements with customers per month
– No formal tracking
– Very manual process (Outlook reminders and Excel notes)
§ Periodic review of deductions taken by customers
CUSTOMER PORTAL
FOLLOW-UPS OTHER DEPARTMENTS
MISC.NOTESSEND INVOICE
MANAGEMENT REPORTS
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ACME + TERMSYNC
§ Pre-‐populated trade reference reports
§ Put installment plans on autopilot
§ Root cause analysis
– Reasons for late invoices
– Disputes
– Deductions management
CUSTOMER PORTAL
FOLLOW-UPS OTHER DEPARTMENTS
MISC.NOTESSEND INVOICE
MANAGEMENT REPORTS
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THE END-‐TO-‐END VALUE OF AUTOMATION
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WHAT SALES STANDS TO GAIN
Happier Customers Increased EfficiencyFewer Invoice-‐Related Calls
Greater Insight into Customers Accelerated Commission Paychecks
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BENEFITS SUMMARY
Happier Customers
More Efficient AR Team
Get Paid Faster
www.termsync.com
