Technology Tames The Collections Beast

Accounts ReceivableFor companies that continue to cite Accounts Receivable as one of their greatest challenges, the question “Where’s the Money?” is never ending. Atlas Welding Supply (Tuscaloosa, AL) has taken the hassle out of collections with a combination of email invoices and automatic payments. “Terms may be Net 30, but many customers treat it like they have 30 days from the day they receive the invoice,” says Vice President James Cain. “By the time the invoice gets to the customer, you may already be five days behind.”

To avoid this situation, Atlas sends out invoices by email or fax as soon as the order is processed. Customers are encouraged to sign up for emailed invoices by offering coupons and other incentives, allowing traditional statement stuffers and other company communications to be sent by email as well.

The company recently implemented an electronic payment system where customers can authorize Atlas to initiate debit transactions using the ACH payment system. Due to its success, Atlas is looking at providing favorable terms for these customers to encourage more customers to enroll. Together, these technologies have had a measurable impact on Accounts Receivable aging for Atlas Welding Supply. “The ROI has been tremendous,” says Cain. “It continues to save us time and money, which in the end all goes to the bottom line.”

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