If you're relying on Sage Intacct to optimize your financial operations, you understand its robust capabilities in automating tasks and enhancing efficiency. Particularly in accounts receivable, this cloud-based platform excels by facilitating faster invoicing, versatile payment options, and direct email communication with your clients. Yet, pairing it with Chaser's technology elevates this convenience to a whole new level.
Sage Intacct’s integration with Chaser allows you to leverage advanced tools that automate nearly every aspect of debtor management—from credit checking and monitoring to the collection and reconciliation of accounts. It's a seamless fusion that minimizes your effort and slashes the risk of bad debt.
Today, we'll explore six practical actions you can take to refine your accounts receivable process when using Sage Intacct and Chaser, helping you to save time, reduce errors, and boost your bottom line.
1. Improve your payment reminders templates
According to our late payment report, late payments are a prevalent issue that affects 87% of businesses. This widespread problem can severely disrupt your cash flow and operational efficiency. To combat this, one effective strategy is to revamp your payment reminder templates.
Start by personalizing your messages through strategies like using the customer’s name, referencing specific invoice numbers, and including details pertinent to the payment due. Tailoring each reminder to the recipient shows attention to detail and demonstrates that you value the business relationship. Personalization can increase the likelihood of on-time payment without escalating to more direct collection methods.
For initial reminders, keep the tone polite and professional. Acknowledge the ongoing business relationship and express understanding of occasional oversights. However, as invoices become increasingly overdue, your templates for following up on outstanding invoices should adopt a firmer tone.
Your reminders should communicate the urgency of settling the payment while maintaining respect and professionalism. State clearly the consequences of delayed payments, such as potential late fees or disruptions in service, to convey the seriousness of timely payment. This approach reinforces the seriousness of the situation without jeopardizing customer relations.
One tactic in crafting effective reminders for overdue payments is to explicitly ask when the payment can be expected. The inquiry shifts the responsibility to the recipient by soliciting a specific piece of information—when they plan to settle the invoice.
This not only puts gentle pressure on them to respond but also encourages them to commit to a new timeframe for payment. Making such a commitment can psychologically bind them to fulfill this promise, as failing to do so could tarnish their reputation for reliability.
2. Use multiple channels for your payment follow-ups
Enhancing the effectiveness of your accounts receivable process often involves diversifying your communication strategies. While email is a commonly used channel for payment reminders, relying solely on this method can limit your reach and slow down payment collection.
Incorporating various communication methods can speed up your payment collection, ensuring that your cash flow remains robust. Here are some of the most effective channels you should consider:
SMS reminders
SMS payment reminders are a game-changer in speeding up the payment process, with users typically getting paid seven days faster than those who do not use this method. Text messages boast a 98% open rate, surpassing the 25% typically seen with emails.
With Chaser, you can automate SMS payment reminders, saving valuable time and minimizing the need for manual follow-ups. The immediate nature of SMS ensures the receivers read and respond to the messages quickly, facilitating faster payments.
Auto-calls
Incorporating automated debtor calls into your accounts receivable process can reduce the time it takes to get paid. Users of automated call systems report receiving payments up to 20 days faster than those who don't use them. Chaser’s auto-call feature allows you to schedule automated phone calls that deliver pre-scripted payment reminders at the exact times and days you set.
The ability to create text-to-speech templates means you can customize the message in a way that aligns with your company’s voice and approach. These calls are executed instantly according to your schedule, ensuring no debtor is overlooked due to a busy to-do list.
Letters
When payments are significantly overdue, escalating the urgency with posted letters can be highly effective. Chaser simplifies this process by allowing you to automate the creation and scheduling of personalized reminder letters. These letters are prepared and dispatched according to your schedule, directly correlating with the invoice due dates.
You can personalize each letter with details such as the debtor's business name, address, due date, and invoice amount, ensuring the communication feels relevant and direct. The ability to customize the content and aesthetics of the letters to match your brand reinforces professionalism. This strategic use of posted letters escalates the seriousness of your payment requests and maintains the quality and consistency of your business communications.
3. Make it easier for your debtors to pay you
Making it easier for customers to settle their invoices improves your cash flow and enhances customer satisfaction. By simplifying the payment process, you remove hurdles that could delay your receivables. Two effective strategies to achieve this are;
Offer multiple payment options
While bank transfers remain the most common payment method, they may not always be the most convenient or preferred option for every customer. Our 2022 late payments report indicates that 60% of businesses primarily use bank transfers, which can sometimes be time-consuming or cumbersome for customers. Diversifying the payment methods available, including credit cards, online payment platforms, and direct debits, allows you to cater to a broader range of preferences and circumstances.
Chaser enhances this flexibility by incorporating a payment portal feature directly into every invoice. This portal simplifies the payment process by providing a secure link in your invoice reminders, allowing customers to pay without navigating away to different systems or websites. The portal minimizes the risk of errors, as payment details are pre-filled, and reduces the barriers to payment.
Implement payment plans
Cash flow challenges are common among businesses, and large lump sum payments can exacerbate these issues for your customers, making it challenging to settle invoices in full. Offering structured payment plans can be helpful. For instance, allowing customers to pay for annual services in monthly installments or splitting payments into manageable parts provides them with the necessary flexibility.
These flexible arrangements help you secure part-payment upfront, which is crucial for maintaining your own cash flow. Furthermore, they demonstrate your commitment to supporting your clients during tough times, which can foster stronger relationships, enhance customer loyalty, and potentially increase repeat business.
4. Review your credit management policy
Regularly reviewing your credit management policy ensures you adapt to changing market conditions and customer behaviors, thereby minimizing risks associated with late payments. You should focus on the following:
Assess your payment terms
Payment terms are critical components of the contractual agreements with your customers, dictating how and when you expect to be paid for goods or services provided. They outline preferred payment methods and set specific deadlines for payment.
Evaluate whether your current payment terms align with your business needs and industry standards. Are the terms too lenient, potentially affecting your cash flow? Or too strict, possibly deterring customers? Adjusting these terms can directly influence the efficiency of your cash collection processes.
Implement and manage credit limits
Credit limits are essential tools in managing financial exposure and protecting revenue. They define the maximum amount of credit you're willing to extend to a customer based on their payment history and your risk assessment.
Effective use of credit limits prevents situations where you are overly exposed to potential bad debts. Regularly reviewing and adjusting these limits in response to changes in customer creditworthiness and broader economic conditions can help maintain a healthy balance between sales growth and risk management.
Consider late payment fees
If late payments are a recurring issue, integrating late payment fees into your credit policy may be beneficial. This strategy acts as a deterrent against delinquency and compensates for the potential negative impact on your cash flow. Clearly outline the conditions and specific charges associated with late payments in your credit management policy to ensure transparency and legal compliance.
To streamline the process of reviewing and updating your credit management policies, consider using a comprehensive credit control policy template. Our template helps you address key areas such as payment term requirements, invoicing processes, and handling of late payments. It also includes sections on accepted payment methods and the delegation of authority, which can improve your accounts receivable management.
5. Utilize AI to protect and bring your revenue in faster
Chaser’s AI-powered tools offer innovative solutions that simplify the accounts receivable process, enabling you to protect and expedite your financial inflows. Some of the AI-powered tools that can help you bring in revenue faster include:
Payer rating
Chaser's payer rating system uses AI to analyze customer payment behaviors and trends across its network, assigning an AI-generated rating of 'Good,' 'Average,' or 'Bad' to each payer. These ratings provide immediate insights into the payment reliability of customers.
This tool lets you quickly identify which customers might pay late and prioritize follow-ups accordingly. This prioritization helps you manage time more effectively by focusing your efforts on accounts that require the most attention.
Understanding a customer's payment history through their rating allows for informed decisions regarding credit limits and whether to pursue debt collection or restrict future credit. Notably, businesses using payer ratings have experienced a 78% increase in the number of invoices paid on time within the first month of usage.
Recommended chasing times
Chaser's recommended chasing times feature leverages AI to analyze payment behaviors of thousands of customers and suggest the optimal times and days to send payment reminders. This tool is designed to increase the likelihood of payment by reaching out to customers when they are most likely to respond and settle their invoices.
The AI model continuously updates its recommendations based on new payment data, ensuring that your strategy is always aligned with the latest trends and behaviors. Businesses using this feature typically see payments fulfilled three days faster on average. They also see a 26% increase in payment speed, demonstrating the effectiveness of timely, targeted communication.
6. Automate the debtor management process completely
Automating the debtor management process with Chaser can transform your accounts receivable operations into an efficient engine that enhances your cash flow and minimizes manual workload. Chaser’s integration with Sage Intacct allows you to synchronize your financial data effortlessly, reducing the time spent on manual credit management tasks.
This integration facilitates sending automated payment reminders, tracking of payment behaviors, and providing diverse payment options for your customers. You can set up a strategic cadence of payment reminders that utilize both SMS and email, ensuring you never miss an opportunity to prompt an overdue payment.
Chaser allows you to embed payment portal links directly into your invoices to make the payment process as convenient as possible for your customers. With just a few clicks, customers can settle their dues, eliminating the need to manually navigate multiple pages or enter payment details.
The benefits of automating your debtor management with Chaser are clear. Organizations that utilize Chaser report getting paid 54 days faster, a reduction in days sales outstanding (DSO) by over 75%, and saving more than 15 hours per week on manual tasks. This level of automation frees up your valuable time and ensures that your financial operations are more streamlined and effective.
Start transforming your accounts receivable process
Leveraging Chaser’s integration with Sage Intacct enhances your accounts receivable process. This powerful combination allows you to streamline operations, from setting up automated payment reminders and embedding convenient payment links in invoices to utilizing advanced features like payer ratings and optimized chasing times.
By automating the entire debtor management process, including credit checks, Chaser helps you protect revenue and get paid faster. Start a 10-day free trial or book a demo to see firsthand how Chaser can enhance your financial workflows.
