How To Reduce Bad Debt Painlessly

Posted on: June 3, 2015

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Topics: Enterprise Resource Planning (ERP)

Debt collection management

 

Ugh – bad debt. Nobody likes to be the bad guy, calling and harassing people to get them to pay their bills. In a perfect world, all your customers would pay on time every time – but unfortunately, this is not a perfect world. Every business has to deal with bad debt and the collections process, no matter how distasteful it is.

Luckily, there are ways to make the process of collecting on past due accounts a lot less painful. By adding certain enhancements to your ERP system and automating collections, you remove the necessity of writing those letters, escalating the situation, and tracking everything manually. This allows you the freedom to jump into the process only when absolutely necessary, with the trickiest of cases, when a phone call or legal action is called for.  And because your ERP was keeping track of all correspondence and every penny paid, you’ll have all the data you need to back up your case if it does come to that extreme.

Here at TGO Consulting, we’re all about making businesses more effective and more efficient – and making life easier on everyone involved, as well. Here are two ERP enhancements we can add to your customized ERP to make your collections process easier, more efficient – and most importantly, more effective.

Credit Hound  


Credit Hound is software designed to act as your automated collections department. Once you program it with specified actions to take when a given situation occurs – such as generating a past due notice when an account becomes so many days delinquent – it will take care of this most time-consuming part of your collections process for you, freeing you up to spend time working on your business, instead of chasing down bad debt.

But Credit Hound doesn’t just send letters. It also reports back to you exactly what is going on with each account, in an easy-to-understand format, using graphs and charts for a quick overview, in addition to more in-depth reporting.

Collections Management by Professional Advantage


Another ERP enhancement we offer to help businesses reduce bad debt is Professional Advantage’s Collection Management for Microsoft Dynamics GP. This software also automates the collections process, generating individual or mass letters, invoices, and emails automatically, and tracking customer responses, as well, so that you don’t have to. As the collections process escalates, multiple invoices can automatically be attached to each new customer letter, so that it’s clear your company is on top of the account.

Collections Management also provides in-depth reporting capabilities so that you are always up-to-date on the status of every account, and allows for long-term archiving of data as well as customization of reports, so that you can easily drill down to the data you need at any given time.
These two ERP enhancements are invaluable tools to add to your ERP system if you are looking to streamline your entire collections process, save yourself time, and make sure you are collecting on all your accounts. Contact TGO Consulting today for more information about how we can help you reduce bad debt painlessly.