The Problem
This busy Accounts Receivables department handles a high volume of invoice queries. Customers cannot pay out on invoices under query. Any delay in resolving those issues negatively impacts the aged debtors ledger.
- Invoice queries were being submitted several times by customers, even after they had been previously addressed and should have been released for payment.
- Accounts Receivable staff found that they were duplicating work in answering the same query more than once, or in constantly following up with their colleagues who needed to resolve the query.
- It was difficult and time consuming to report on what aged debt was under query and what was simply late.
- Responsible parties, within the organisation and on the customer side, were not being held accountable for queries that were stalled awaiting action by them.
Although staff were doing what they could to manage these queries, it was clear that a defined processes and systems would be needed to deal with backlogs and streamline workflows going forwards.
The Solution
After in-depth consultation with the administrators and manager, a custom database was built in MS Access in order to record details of all incoming queries. Subsequent submissions querying the same invoice can now be quickly answered by consulting the database. Paperwork relating to each query is filed under the unique code generated by the database for that query and easily accessible.
The Result
- Staff workload is greatly reduced.
- Reporting is now available to management on what debt is under query and at what point in the resolution process each query is at.
- Queries can now be tracked from receipt to resolution and follow up with relevant parties has become an easy matter.
- Reasons for queries are now tracked and reported on - for example, a rise in the number of queries relating to goods being received as damaged is now quickly noted and addressed with the carrier to prevent further issues.
- Customer service is improved.
- Ultimately the collection of the aged debt has become easier and faster.
If you have an issue you’d like to chat about, book a call or send an email today to see how Nicola at LumenVA can help.