How and why you should optimise your billing cycle
Traditionally, the turn of a New Year is an opportunity to set new goals - whether that is as simple as spending more time with loved-ones or to secure your dream promotion - now is the time to raise the bar.
The New Year brings with it a chance to form new ideas and invest in new opportunities to improve the ways in which you work; with teams often returning to the office after a restful and joyous festive season with fresh eyes and a willingness to adopt new and more efficient ways of working.
With this in mind - the following is why your firm's New Year’s resolution should be to optimise your billing cycle.
How and why you should optimise your billing cycle
Although it might seem like a complex process, optimising your billing process starts with two very simple and easily implemented principles -
● Understand your clients’ payment patterns
● Invoice in a timely response to your clients' payment patterns
Understand your clients' payment patterns: arguably, the most effective way to optimise your billing cycle is to carefully monitor and understand your clients’ individual payment patterns. Identifying these patterns will help you forecast and plan more effectively & efficiently; helping to reduce risks such as late payments.
Invoice in a timely response to your clients' payment patterns: invoicing in a timely and time appropriate manner - often referred to as ‘Time-to-Invoice’ or TTI - will inevitably make a positive impact on how quickly you get paid.
This becomes simple with CreditForce
CreditForce analyses past client behaviours to calculate the Average Payment Day. With payment patterns correctly identified it is essential that, assuming your firm has 30-day payment terms, you ensure invoices are sent to clients 30 days in advance of your clients' Average Payment Days. This will sufficiently increase the probability of payment reaching the account within your clients' payment run.
CreditForce analyses outstanding debt, successful collection strategies and payment behaviour to recommend the best time to trigger a reminder letter action with the most effective medium. CreditForce is scanning for information all day, every day, giving your team the best possible tools for the best possible success.
With CreditForce leading the way, your Credit Management team will benefit from efficiency and productivity improvements of up 45%, through systematised planning and data-driven Collections automation. On average we have helped our clients to reduce DSO from 20% to 50%, and cut the operating costs of Credit Control by between 20 to as much as 80%.
To learn more about CreditForce and how it can help optimise your billing cycle, please click here or request a demo.