Success can be defined and achieved using different means, but one factor that is inarguably a contributing agent to a staffing agency’s success is its ability to maintain great cash flow.
This is indeed an important aspect of your Staffing agency. Fortunately, using 1Staff Back Office along with Collections Management, your staffing agency can improve the efficiency of its cash flow by expediting your customers invoice payments, which will consequently allocate the necessary fund to pay your employees.
How 1Staff Back Office and Collections Management can contribute to this process:
In 1Staff Back Office, after a Job placement is created along with the temporary or permanent employees, the related invoices pertaining to this placement can be automatically created and posted to the Microsoft Dynamics GP® Receivable module. Of course, this will imply the temporary employee’s timesheets have been correctly entered in 1Staff Back Office through Microsoft Dynamics GP® or through an external time entry system such as Web Time.
Secondly, after these invoices have been created and correctly posted in the receivable module, the next step pertains to their Collections. This is where two great features of Collections Management: The Collection Plans and the Collection Letters, will greatly assist your staffing agency collect your receivables.
The Collection Plans
Once assigned to your customers, the Collection Plans will ensure to execute the corresponding action (e mail Collections Letters, schedule phone calls….) related to your customers based on their past due invoices. In this perspective, 100 customers on a collection plan, for example, will have their respective action implemented as the Collection Plans are ran.
Collection Letters have the following attributes (among others):
- Collection Letters can be automatically sent using a Collection Plan
- Collection Letters can be drafted to automatically include specific customer related information in the body (customer contact information, Collector or Collections Team Contact information, overdue invoices, all invoices, X days past due invoices, credit document etc.)
- Collection Letters can be created to contain a payment link and designed to automatically create Finance charges.
Now two great points of emphasis:
1. Using the Payment link included in the emailed Collection Letters, your customers are able to easily pay their invoices by clicking the payment link within the Collection Letter email they have received and make their payment.
Through a PCI (payment card industry) compliant process, these payment links will not only assist in getting your company paid faster, but can also contribute to reducing your days sales outstanding, which is automatically tracked for your convenience in the Collections Management Days Sales Outstanding window (Inquiry > Sales > Collections Days Sales Outstanding).
2. In addition to the payment link, the Collection letters can also be used to automatically generate some finance charges pertaining to your customer invoices.
These finance charges can serve as an incentive for your customers to ensure their invoices are paid on time in order to avoid these automatically generated finance charges.
Using the right tool, your Staffing Agency can efficiently setup and assign your temporary and permanent placements, automatically create and post the related invoices, and accordingly collect these receivables using the Collection Plans and the Collection Letter features.
Request today a 1Staff Back Office and Collections Management demo to see how your staffing agency can take advantage of these great features!