The process of collection management consists of several different steps which can be dealt with in an independent way and can be disposed as follows:
- Invoice distribution
- Collection management and speeding up
- Value for collection
- Treasury management
This way, an all-embracing process can be faced, this process begins upon delivery of the invoice to the purchaser and ends when full payment of the debt is credited through the accounting system of the firm.
This step is considered, taking into account the different problems that firms have regarding invoicing management and related instruments, credit and debit note, etc, this management sometimes involves important expenses as well as internal control and logistics problems.
By means of our experience within credit and collection area, we are able to see clearly that those problems which daily arise on invoice distribution have direct consequences on the firm cash flow.
In fact, we are in charge of the fast delivery of the instrument in due time and proper form as per your firm requirements. All this, allows us to solve this problem before due date and, this way, overcome situations such as the endless argument on whether an invoice arrived or not.
- Decrease of administrative cost.
- Decrease of financial cost.
- Removal of private distribution cost.
- Removal of cost due to loss of invoices.
- Removal of operating cost within the area of Customers´Service.
- Obtaining on line information in actual time, on the present situation of the instruments to be distributed.
Management and speeding up of collection
The management or speeding up system, consists of obtaining by means of an agreement with the client, the day and time of collection of due invoices, both parties should agree on a day and time of collection, as well as on a control not only on the date of payment of the invoices on their due date, but also on the quality of the instruments to be used in order to carry out the payment.
The management area may be used as a complement of those collection systems already working in the firms, thus allowing an easy access to the information on the payments made by their clients through bank deposits, or value collection or cash from non-official payments, introducing a previous management system which allows such collection to be done in due time and proper form.
In general, this procedure is accomplished by means of a thorough auditing as of the beginning of the circuit- issuance of the invoice- up to its ending, when the person in charge of collecting the invoice at the clients domicile receives the payment or by means of any electronic or bank mean of payment.
Trough our service, an immediate access to information shall be obtained, regarding those values in transit or in the process of collection, or already collected, with further advance than the one achieved through traditional collecting channels, clarifying doubts in actual time, such as: who collected? How much was collected?, when was the invoice collected?, why was not the invoice collected?
Management and value collection
Our firm collects those values canceling the corresponding invoices, having payment date being established in accordance with your client. The connection of these two areas produces an immediate decrease of the amount of time existing between due date of the invoice and the actual income of the money related to the invoice. This way and in order to avoid the very well known “days in the street” , we will try to get to due date without the usual inconvenience or old excuses, such as lack of instrument, failure of the goods, various claims, etc.
Upon agreement on date of payment with the accounts analyst – appointed by our firm for such purpose -, collection work starts at your clients domicile.
Later, and according to the date agreed by both parties, values shall be rendered in your offices and shall, eventually, be registered in your systems, electronically or by means of the appointment of one of our employees who will enter the information in the corresponding computing system.
By doing this, a remarkable diminish on operating costs (regarding your management facilities) shall be obtained, because frequent expenses such as motorbike couriers, telephone, personnel, delays in checks delivery (for those cases when the collectors are also salesmen or the freighters, among the best known).
This system will also provide operating speeding and actual time information for all those steps which have been included in the current process.
Finally, we propose step called Treasury Management, as a conclusion to this system of collection. This step enters the two before mentioned procedures and is in charge of depositing the checks – in the accounts indicated by your firm – on due date, crediting shall be checked subsequently.
Once such the before mentioned crediting has been checked, due registration on the firms accounting system shall be performed by means of an interface which allows the transfer of the recording of the invoice payments (by means of accounting systematization to the firm general accounting.
Gestión de tesorería.
Por último, proponemos como corolario de este sistema de cobranzas, la etapa que denominamos Gestión de Tesorería. Éste, acumula los dos anteriores y se encarga de depositar los cheques – en las cuentas que vuestra compañía indique – el día de su vencimiento, verificando posteriormente su acreditación.
Una vez verificada tal acreditación, se llevará a cabo su debida imputación en la contabilidad de la empresa mediante una interfaz que permita trasladar mediante sistematización contable, la imputación de los pagos de las facturas a la contabilidad general de la empresa.
24 hour online information system in actual time.
The proposed service includes the possibility for your firm to enter our database via our website, from where you will be able to control the condition of the management of every and each of the invoices to be collected.
Upon registration, user name and a password shall be provided, this will allow you to enter the corresponding database and thus, carry out the necessary inquiries regarding invoices, receipts, debit or credit notes, or the collecting process itself.
This way, this part of the process will become a useful tool when your credit and collection department analyses the extension of future loans shoul the client being dealt with have invoices in collection process.
Indirectly, this situation will allow your firm to perform a daily auditing of our management.
We offer personal management, with your firm as well as your clients.
The analysts who intervene in the management of collections speeding up as well as those employees who perform the collections at the client’s domicile shall be appointed to the account in a permanent way, thus the deal will fluid and personal which will provide a better service for your client.
Whole administrative and commercial auditing.
Indirectly, the proposed system works as a thorough control of marketing and an administration channels in your firm, because management control and payment administration show immediately any bias in the sales process, by registering any change on the conditions agreed on the corresponding invoice, or allows the improvement on the invoice issuance process when bias occur at this point regarding issuance terms and delivery of invoices.