Access to comprehensive debt collection data insights and analytics is critical for organisations to make informed decisions about how to optimise their collection efforts. However, despite gigantic leaps forward in technological advances in the debt collection arena, many business still struggle to secure visibility over the effectiveness of their collections strategies. In this article we take a look at how businesses can still access meaningful debt collection data insights and analytics -without taking the plunge and investing in a fully automated debt collection software solution.
The impact of technology on the finance landscape cannot be overstated. From continuous accounting that ensures up-to-date financial information, to automated systems that streamline processes and reduce human error, technology has revolutionized the way finance functions operate. Embracing technology is no longer optional, but a crucial component for success across all aspects of finance.
Invoice-to-cash is one of the business functions which has seen huge benefits from advances in technology. Modern cash collection software systems provide transparency, real-time intelligence, and data-based insight across legacy processes which was previously inaccessible. Through the utilisation of algorithms and analytics, debt collection software can analyse extensive data sets to recognize trends, anticipate customer actions, and create intelligent workflows which customise recovery tactics accordingly. There are numerous solutions available in the market-place offering different functionality. Some of the best rated by Gartner include Billtrust, Invevo, High Radius, Esker and Sidetrade.
Despite this a surprising number of businesses still run their collections process off vast spreadsheets. An often over-looked back-office function, the implementation of ERP systems, CRM and marketing tech can often take priority – both in terms of financial investment and access to IT resource.
If your business is struggling to find the budget and resource to commit to a specific cash collection software platform, there are ways to gain the data insights and analytics to make actionable decisions that will enhance your cash collection process and improve cash flow. Data analytic and reporting tools such as Microsoft Power BI or Zoho can provide a cost-effective way to integrate disparate data sets from various sources such as accounting software, customer relationship management (CRM) systems, and external financial databases.
As Michelle Williams at Meesh Consulting explained “we have implemented a Microsoft Power BI solution for several clients who were struggling to access a comprehensive view of their accounts receivable process. By consolidating diverse data into a unified, interactive platform, its advanced analytics and real-time dashboards can provide the insight to help collections teams prioritize efforts effectively”. These solutions will not provide the business with the intelligent workflow and automation tools available through an invoice-to-cash software solution. But they will enable data informed decisions such as which accounts to prioritise and when escalation to third-party collection is necessary to avoid ageing ledger and bad debt.
The ability to access these debt collection data insights cannot be underestimated. At Barratt Smith and Brown, we help many businesses who through a lack of actionable data have millions of pounds sitting in overdue invoices. And to be meaningful, data insight must be followed by action. Whether this is adjusting internal processes or identifying the escalation point to third-party – once a business has gained debt collection data insight and visibility over its debt collection process, it must use it to make changes to improve efficiency and effectiveness.
About The Author
Ashley Barratt has over 20 years experience optimising cash collection for global blue-chip businesses. Working with clients from a broad cross-section of verticals, Ashley and the BSB team specialise in delivering clients custom-made collections solutions that support their brand and customer relationships whilst still achieving those critical cash targets. If your business is sitting on ageing debt and is looking for some outsourced support to help resolve it, you can book a call with our team here, or contact us at business@thebsbco.com / 0116 2182045.
