What is Credit Collections Management?

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Many companies don't realize they have credit and collections problems until they need cash. Anytime Collect is collections software to help businesses get paid faster. Collections software is integrated with Intuit QuickBooks, Sage Peachtree, Sage MAS, Sage Accpac, Microsoft Dynamics, and other popular accounting and ERP software. www.anytimecollect.com.

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What is Credit Collections Management?

  1. 1. Definition: Credit & Collections Management (CCM) is a suite of integrated business applications thatextend a company’s accounts receivable and accounting system to expedite key areas in your businessprocess.CCM systems can vary depending on your choice of publisher; but typically, CCM supports six keyfunctional areas :1) credit facilitation2) billing and invoicing3) remittance processing4) collections management5) dispute resolution6) reporting and analysis.
  2. 2. 1) Credit Facilitation: includes credit scoring, credit application processing, reference checking, ordering credit reports from credit bureaus, financial statement analysis, new account approval, order approval, credit limit decisions, accounts receivable portfolio monitoring, and credit risk management.2) Billing & Invoicing: involves identifying invoice errors, ensuring vendor compliance, generating an accurate invoice; generation, transmittal and distribution of invoices and statements; trade promotion planning; contract management; Electronic Invoice Presentment and Payment (EIPP); and Electronic Bill Presentment and Payment (EBPP).3) Remittance Processing: includes financial EDI , EFT (Electronic Funds Transfer including ACH, Automated Clearing House), auto-cash algorithms and routines, payment-to-invoice matching, cash settlement, cash forecasting, as well as credit card processing and matching already-on-account credits, debits, and unapplied payments or adjustments.4) Collections Management: includes workflow automation driven by a collection strategy engine, prioritized collection activities, integration of A/R data, a reminder system, activity logs, account and invoice level notes, integrated communication tools, faxing capabilities, e-mail, invoice reprinting, other forms of data export, payment plan calculators, imaging tools, and auto-dialers.5) Dispute Resolution: includes dispute and deduction resolution, chargeback processing, exception reporting with automated escalation processes, a routing engine, collaboration tools, document sharing, and tools for root cause identification.6) Reporting and Analysis: including cash forecasting, dashboards, email alerts, query capabilities, out-of- the-box reports, report generators, workload balancing, exception reporting, cycle time analysis, portfolio risk management, customer intelligence, and month end reporting tools.
  3. 3. ▪ Accounts receivable is typically the first or second largest asset for most businesses; if you have outstanding AR you are losing out on one of your major assets, cash!▪ Accounting and enterprise resources planning (ERP) business applications include accounts receivable modules but most often provide only minimal tools to support collections and dispute management processes. A system dedicated to CCM would provide more functionality and better support your activities.
  4. 4. ▪ Companies in many different industries struggle to manage outstanding accounts receivable.▪ According to the Credit Research Foundation Industries with the highest median percentage of uncollectable receivables included: – manufacturing – specialty trade contractors – business services – engineering services – wholesale distributors▪ These findings show that companies in many different industries can benefit from an integrated CCM application coupled with formalized business procedures to streamline credit and collections activities
  5. 5. A CCM application will extend existing accounts receivablefunctionality and processes which can result in:– reduced transaction costs– improved cash flow– Improved cash forecasting– optimized staff productivity– reductions in bad debt and write-offs.Companies who automate collections and nothing more are realizing:– 10 – 20% reductions in daily sales outstanding– 25 % reductions in past due receivables– 15 -25 percent reductions in bad debt reserves– ROI in as little as 2 months & usually in no more than 6-9 months
  6. 6. Contact e2b teknologies to speak with one of our CCM experts Phone: 440-352-4700 Email: sales@e2btek.com Website: www.e2banytime.com

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