Reduced Days Sales Outstanding
Did you know that in 2013 these were the averages for uncollectable Accounts Receivable?
- 26% of invoices 3 months old are uncollectable
- 70% of invoices 6 months old are uncollectable
- 90% of invoices 12 months old are uncollectable
The longer those overdue accounts receivables languish, the less likely it is that your company will ever be paid.
One of the key contributors to reducing Days Sales Outstanding (DSO) is good customer communications. Giving the customer the documentation, in a timely manner, required by them to support payment, streamlines the collection process. Having access to Sales Orders, Acknowledgements, Picking Slips, Bill of Lading, Proof of Delivery, damage reports, and RMA documents reduces the time required to research customer concerns and promptly ask for payment.
Being able to bundle together all the documents that show the Sales Order life cycle demonstrates proficiency and eliminates uncertainty. The customer’s accounts payable personnel have what they need to support payment authorization. It improves the efficiency of both their Accounts Payable personnel and your Accounts Receivable personnel. The net effect is improved customer relationships and improved cash flow.
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