Anytime Collect:How Systems Maintenance Services Reduced DSO by 40% by Putting A/R Collections on Auto Pilot
February 12, 201212:00 PM to 1:00 PM EST
by James Mallory
Return On Investment
ROIAs a result of automating collections, companies are realizing:
10 to 20 percent reduction in DSO
25 percent reduction in past due receivables
15 to 25 percent reduction in bad debt reserves
Increased productivity and ability to hold down staffing costs
Costs of installing the collection software are recouped in as little as 2 Months and in usually no more than six to nine months.
-PayStream Advisors
How Much Could You Save?
Systems Maintenance ServicesCase Study
Systems Maintenance Services
• Partner – Practical Software• 4 collectors in 3 states • Sage 500 ERP – no collections functionality• Decentralized systems & spreadsheets• No management reports• 2,000+ customers • 3,000 invoices monthly
Systems Maintenance Services
32 Years In Business (Founded 1981)
600 Employees 90 Global Service Centers3,100 Enterprise Customers 99.7 Customer Retention Rate 60 % of Dow Jones Customers
www.sysmaint.com
Goals & Strategies
Goals:
– Implement a measurable collection methodology
– Have a better process than Excel lists or alphabetic customer lists
– Escalation tracking with readily available history
― Not “digging through emails” to understand history and escalations
― Obtain payment within 30-60 days.
― Target DSO of 55 by the end of 2012.
Systems Maintenance Services
• 1 Person Contacting Every Customer Account• Send Statements & Invoices• Resolve Simple Disputes• Very High Ticket Volume
Level 1
Systems Maintenance Services
Benefits
1. Invoices are all in PDF and readily selectable in e2b2. Statements generated on the fly3. Emails sent and received from the software4. Notes and attachments all in one place5. History for escalation readily available6. Advantages gained for history and auditing7. Collection activities are measurable8. Using the software to drive measurable and desired results9. Customer AP contacts readily available10. Significant reductions in labor related to collections within the first six
months of using Anytime Collect
Systems Maintenance Services
Benefits
11. Reallocation of 50% of one credit manager’s time to other activities 12. Significant reduction in outstanding A/R13. Increased cash flow14. Instant access to current account aging, invoices, and payment history 15. CRM-like capabilities to document calls, email, and other activities.16. Shorten the sale-to-cash cycle time 17. Insight available “to act, instead of react to outstanding accounts.”18. DSO at 49 days (6 points below targeted goals)19. Excluding our 2 most difficult customers, DSO is at 40 days20. Equal and measurable work load between the collections personnel21. Internal audit…we are prepared22. Because of the simplistic presentation capabilities of the software, we will soon be
publishing AR information into an intranet site to Sales
Systems Maintenance Services
67 Original DSO Before Anytime Collect
49 New DSO After Anytime Collect
40 DSO After Anytime Collect (Excluding 2 Difficult Accounts)
40 Percent Reduction in DSO (Excluding 2 Difficult Accounts)
27 Days Cash Is In Bank & Not In A/R (Excluding 2 Difficult Accounts)
Systems Maintenance Services Collected More Cash
Than They Invoiced in 2012!
Demonstration
About Us
• Original Publishers of Sage 500 ERP Manufacturing• 20+ Years Cloud (and premise) business software
development experience• Sage 500 Gold Certified Developer• 2011 Sage Development Partner of the Year
your success lies not in the products you buy
…but in the partners you choose
Pricing & Deployment
• Hosted or Premise SQL Database• Purchase or Subscription Pricing• Credit Rep, Sales Rep, Customer
Portal Users• Basic, Standard, or Enterprise
