Regardless of how efficient your system is, you’ll run into payment recovery issues at some point. It’s not unusual for companies to see duplicate payments and overpayments, which means cash flow can be significantly affected. This doesn’t happen to large companies exclusively; even smaller firms can miss the details that will result in payment recovery action later. What can you do to protect yourself?
1. Automated Processes Can go Awry
Your automated business processes can be a big help to you in many of your daily tasks, helping you to make quick work of tedious items. Unfortunately, some automated services don’t recognize duplicated invoices, which means they’ll pay more than once. Another problem area is an automated service that sends payments to the wrong place. You should have a technician cover all the bases and look for areas where these mistakes are leading to payment recovery situations.
2. Don’t Give Away Money While You Race to Sustain High Performance
Your procure-to-pay process could be at fault, especially if you’re running disparate and inefficient processes. Human error is also a common problem in this arena. You could have discrepancies in your pricing, which is a particular problem with large organizations, but can also happen with the small ones. Overpaying suppliers because of incorrect invoices and/or mistakes made in deductions and allowances are also common problems. Slow down and check over all of your processes to make sure everything lines up.
3. Don’t Underestimate the Value of Bringing in a Third Party for Payment Recovery
Companies lose millions and millions of dollars per year through financial leakages. It’s obvious that even the biggest and best have a problem identifying where the money is escaping, and in some cases, companies don’t recognize leakages until long after the problem started. This can lead to unrecoverable situations and a total loss of that revenue. However, companies that bring in a third party to look at capital and cash flow management procedures can help find the leaks and tighten up loose areas.
It’s not until a professional third party comes in to investigate the situation that the company realizes more transparency in its spending or strategy in its sourcing. Contract management and procurement management are also areas that most companies can’t expect to be experts in, which is why it makes perfect sense to seek help from an outside source that does that kind of work full time.
Payment recovery solutions also include the most common situations where your billing procedures are spot on but your account holders fail to live up to their end of the bargain and pay what they owe. This is also a situation where a professional collection agency can come in and collect debt you thought you’d never see again.
Omega-RMS, llc., has worked with companies small and large across many industries to recover lost revenue. From accounts receivable management to early intercept recovery services to contingent collection services, Omega has solutions that will improve your cash flow and help you grow your business. Contact us today and find out how our professional services will boost your profits.